Jeff Reeves (MarketWatch, Undervalued Stocks)


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This segment of the financial exchanges brought to you buys you rent your landlord. Take advantage of zero a fully automatic online right collection tool. That is free for landlords with an account in a participating bank it always free for tenants now collection of local banks offer this unique program. Including leader bank and stone bank sign up and have rent payments deposited directly into your account. Call 781641. 8691 today your visits he ran dot net for more information member FDIC. Joining us on the line now is Geoff Reeves from market watching Jeff thank you for the time today. They're just to the the title of the article is by these five undervalued stocks on this market pullback. Let's start first the market is rally a little bit the last couple days somebody still look attractive deal. Yeah I mean I. Ironically the pulled back and you know what you pulled back anymore than indexes were taught in the green you're today they're kind of looking you know pretty Rabat Specter are strongly doubt. I don't know that pullback. It'll be it again but you know I I think the message behind these stockpiles and we eat the you know little softness in the coming weeks I think investors got a Patrick quality iron pot but it all these are still pretty good value investment that it goes in you know some of the growth plate and he's seen over the past years and it got most of the attention. Start with Macy's day down about 60% in the last few years the charge don't look particularly pretty. But is there some value in this company steel. Yeah I think there is I mean Macy's actually outperform the market thus far and when he teed it up almost 5%. You know at the pain that that company is seen as obvious that he e-commerce brick and mortar hasn't been so great. But it actually had a pretty good shelling this holiday season it reports earnings for the entire fourth quarter on 27. You know you got about all the luck in two weeks. I think eight kind of encouraging results they're good but the stock also reporter remember that the other blog talk about tax reform out there. People cannot overlook somebody domestic retailers Macy's books overnight senators revenues in Butte domestic US though. You know I don't dropped to 21% tax rate as opposed you'd pretty effective tax rate of 36. Is gonna pretty good for the stock this year. You know at in that kind of single digit PE ratio it's pretty good value back for folks were looking for like at that an alternative to it to the growth plates that are out there. And Jeffrey thicken blunt term buy and hold a Macy's are just getting in and makes in profits. While this good news comes in and get back out. Well I'm always reluctant you know kind of Burton mortar retailers did the thinking years and that it does not I mean I'd be comfortable. Just what are short term play that the dividend is recently attracted your long term investor but you know there's always a problem of not store. Prompt the bottom line and make echo way that critical company in the did it and I would be more profitable long term play but I definitely think that is what you gotta watch. I think it might be pretty good bird you know maybe the rest between eighteen that packet that you wanna thinks several months that that for years about Iraq I mean he's it's been beaten down for further agreed. Of a sudden a little bit about General Motors this was a company that from. It's re released into the wild and when he thirteen through in the middle last year. It was pretty much flat before picking up a nice rally to end of last year what do you think this one has kind of going forward over the next couple years. Yeah I mean I think a lot of the negativity around some of the auto makers that is a little bit overblown I mean we did seek a record sales and most 1617. And a lot of people who think that you know he used an apple has turned out great like a lot out of this kind of behind us. You know but both agreed that we saw those failed is because technology and in cars is just like yours at a what was the content fifteen years ago. So you know there's another state and autonomous vehicles and electric cars could you become out. They're beginning big mainstream adoption. Yet actually has a pretty good electric vehicles we thought they've redesigned. All their Buick are actually a big reason that they. Beat earnings recently is because. The of the kind of redesigned crossovers not suvs including Dubuque conclave. Apparently connected really well consumers felt. You know are encouraged by all that and you know again and I'm looking at value placed here is it also opens into the UP. The dividend that he also I am much more comfortable win. On you it's it's not a 3% believe it about three after point six right now. That it is stocks that I think people can stick with long term especially because. With her talk from the the thought about outreach McIntyre but the bond markets and a lot of interest bearing asset so comfortably under three defeat in three app. The value investment would like you have I think that it is back that you can hold on for a couple of years and pretty happy with. Jeff obviously mentioned some of the changes happening in the automotive sector electric vehicles the shift towards driver was vehicles. Calming me us at some point the next a couple of years for a lot of these companies GM included. How does a business model like there's a look. With that latter shift happening do they do we have any idea what a company like GM could look like them. Well I mean I think it's out of the economist Karzai of course is that it's all about regulations and out of work you'd worry about insurance liability we need to talk about whether cardigan. Communicate with each other with a road. I think that there are a lot of technology that need to be ironed out but I think the important to remember about a company like G yeah. It does have the scale it does have that kind of wheeled succeed there's a lot of talk about how but you know tougher has problems just meeting demand now right. I don't know how would ever survive and and Atlanta's Matt produced autonomous cars you know that exists in two point one that seems really right right on the corporate company like I. So you got to understand luckily like GM is that it is global it does continue to invest in our deeds it Chevy Volt line actually one of the best selling electric vehicles people don't. You're a lot about that because that does. Doesn't do the same audience so I wouldn't have a company like that out you know I I think there is definitely going to be shake ups other targets reflect on the technology front. But you know where there's a will there's a land I think she can it be that headed in the right direction. I would never Albany back and it just it's the way I am kind of look at anything in there but I'll look at that spur public and her twenty years. But I do you think that you know 2018 into the 2019. GM within. Really good shape particularly considering market that that the value play here is. It's trading at a big discount compared to its peers and I think he can act. A little bit about Viacom is a company that we were chat non earlier in the show. The stock has struggled over the last couple years as well it's obviously in a very rapidly changing media environment. What do you think they can do to position themselves going forward to potentially get this stock price to rebound. Yeah I mean you know that this is definitely one of those stocks like Macy's where I think you gotta be it's a little touch and gusty out attention to it by. You know black comic had obvious difficulty such that the scale of the brand that Walt Disney does certain Comedy Central and Nickelodeon but. You know beyond that it's just. You know a bunch of different iterations of that ecosystem. I think it's really important for our Viacom that successful that streaming launch. They're really going all in with a this year that if actually is that the deploy smaller at that against it. Is good news because you know the tide is definitely out and make that happen. I think the million dollar question is independent that entertainment company what does the future hold you in a lot of consolidation and a lot of folks. You know going big on streaming but you know there's an icon at the deep pockets then and the content library to actually survive. I mean that those are open questions long term but I do you think. You know after a big drop off the last you know 45 years here. I think there might be some value to be attic and market said. With the other stocks that the single digits he company's investors kind of overlooked. You know there are hopes that the merger recede yes. Around the corner you could see kind of a buyout premium priced in there. You know I said before I think it is actually got to watch it. But it's for for folks who are just concerned rooted. Overall market valuation in chasing some of these growth stocks you know with forward price earnings ratio of thirty or forty. I know that it the last in the Amazon and buy high and and just fell higher but. You know sometimes that those volatile work it if you're a more conservative outlook for value plane that evening Viacom had been some of these other picked at and value right now. Very good Jeff thanks for the time have a great weekend we'll catch up soon. Updated yet. Geoff Reeves for MarketWatch talking about five potentially undervalued stocks there GM's one that we've talked about it a ton on the program Macy's is well not. Not necessarily as positively about Macy's. But obviously you know with any of these companies in some cases they are undervalued for. Legitimate reasons maybe eight maybe they deserve to be value that low but in other cases maybe investors just aren't quite picking up the story that the company's telling. Yeah one interest in name on his list Lincoln National which is buying up a lot of liberty mutual's benefits group and of great interest to a lot of Liberty Mutual place here. In southern new England and that certainly looks like a very interesting upset play with the the national.