Five Spot: Lirola Sees 'Too Much Bullishness'
Needham Asset Management's Bernard Lirola says there's too much bullishness in the stock market.
He's sticking with small technology and consumer companies for his $12 million Needham Aggressive Growth Fund (NEAGX), which is rated five stars by Morningstar (MORN). The mid-cap growth fund is up 9% this year, tripling the 2.8% gain of the S&P 500 Index. The fund has lost 1.8% a year, on average, in the past year, but gained 4.5% in the past five.
Lirola shares his stock picks in today's Fund Manager Five Spot, where America's top mutual fund managers offer their investing views in five fast and furious questions.Are you a bull or bear? Lirola: Valuations are in the middle of the fairway. I am neutral as the upside potential from things like the pickup in housing and the impact of stimulus fairly matches the downside risk of deteriorating employment and too much bullish sentiment. What is your top stock pick? Lirola: Actuate (ACTU) is our top pick. The company is developing intranet and extranet applications in open code. The company is run by its colorful founder, Pete Cittadini, who is dedicated to growth as well as profitability. It recently bought back a significant amount of stock at $3.50 and is expected to grow its EPS in 2009, not a small feat when over 50% of its revenue comes from the financial sector. Actuate delivers great functionality at attractive prices and facilitate large enterprises transacting with their customers online, a long-term growth trend for the company. This company should get taken over sometime by the likes of Oracle (ORCL).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV