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
TheStreet Open House

Glass Half Full for Corning, Teck Resources

NEW YORK ( TheStreet) -- Investors seeking high-quality stocks in the face of a weakening economy should consider Corning (GLW) and Teck Resources (TCK), says Marian Kessler, co-portfolio manager for the Becker Value Equity Fund (BVEFX).

The $144 million fund, which garners four stars from fund-rater Morningstar, has returned 9.2% in the past year.

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

What is your view of the economy?

Kessler: The global economy continues to weaken as we approach year-end 2012, led by the recession in Europe, slowing commercial and industrial construction in Europe and China, the likelihood of higher taxes and austerity programs globally and widespread inventory destocking that will weigh on GDP growth in the months to come.

The U.S., Canada and Mexico appear to be ballasts; economic growth, while not robust, appears stable. All told, global growth will most likely weaken into the first half of 2013, exacerbated by the fiscal cliff and attempts by the U.S. government to reduce the burdensome debt created during and post financial crisis.

What is your top stock pick?

Kessler: We buy stocks that are out of favor but high quality, selling at attractive absolute or relative valuations and have an identifiable improving roadmap in the near to intermediate term.

We feel a strong commitment to each one of our individually chosen 60 or so holdings and thus run fairly equal weighted position sizes. However, a recent addition to portfolios is Corning. This company is one of the leading glass manufacturers in the world, developing and manufacturing product for display technology -- computers, laptops, mobile devices and life sciences.

The stock was under pressure in late 2011 and 2012 due to concerns about global demand for display, particularly televisions, as well as production over-capacity in China. Recently though, several Asian producers have announced shuttering of uneconomic glass plants and demand appears to be stabilizing after several quarters of decline. Corning is selling at a single digit P/E, is trading below a high quality book value, boasts a solid and cash rich balance sheet and produces strong free cash flow.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs