This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tiffany Profit Boost Is 'Tremendous,' Investor Says

NEW YORK ( TheStreet) -- Tiffany (TIF - Get Report) will shine in the second half of the year and so will Accenture (ACN - Get Report), says David Fingold, manager of the Dynamic Discovery Fund (DWGDX).

The mutual fund, which was started in April 2009, has returned 20% over the past year, putting it in Morningstar's (MORN) 56th percentile for world stocks.

Welcome to TheStreet's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format.

Why do you like Tiffany? Is high-end spending secure?

Fingold: We really like the jewelry business. If you look at their stores in the United States, they are performing way below potential. That means there is a lot of room for their sales to return to their peak. The opportunity to raise prices and increase gross margins is also tremendous because there's little customer resistance to prices hikes. Gold and silver and diamond prices may be rising, but they pass those through to their clients.

Considering the stage of the so-called economic recovery, why do you like Accenture?

Fingold: I like IT spending and they are a gatekeeper on IT spending. As you know, there's always depreciation and there's a huge incentive for companies to invest in technology. We haven't had a real technology cycle since 2000. Accenture's the best-in-class player with the highest amount of consulting in their mix and the highest margins. They can even provide some of the lower value-added business from their base in India. They are a total service gatekeeper to major corporations that want to modernize, and they need to modernize now more than ever.

There are worries about fracking, a form of energy drilling, because of the release of chemicals. Yet, you hold Dresser Rand(DRC)?

Fingold: As far as natural gas is concerned, if you are going to produce it, you have to compress it to gas-line pressure. You simply don't have a choice. And the great thing about this business is not only that they sell compressors, but compressors usually come with a service contract. If that well is producing, you have to compress. Over half their pretax profit comes from service revenues. They have wonderful pretax profit margins -- close to 20%. They also have lots of upside with the new technologies they have developed for the fields off the coast of Brazil.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DRC $0.00 0.00%
GSM $10.19 0.00%
ACN $112.92 0.00%
AL $30.48 0.00%
TIF $71.35 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs