Unilever, Visa and NXP Semiconductors Are Superior Stocks, Says Mott Capital Manager

Unilever shares are up over 7% this year and the company should continue to perform well.
By Gregg Greenberg ,

Unilever (UL) - Get Report shares are up over 7% so far this year and the consumer staples giant will continue to perform well as it expands its reach in the emerging markets, said Michael Kramer, portfolio manager for the Mott Capital Management All Cap Growth portfolio on Covestor.

"About 60% of Unilever's revenue actually come from the emerging markets," said Kramer. "Americans take for granted going to the store and picking up simple items like soap and we make up a very small percentage of the world's population, so think about the growth opportunities Unilever can capture."

Kramer is also bullish on Acadia Pharmaceuticals (ACAD) - Get Report , which has seen its shares jump 14% so far in 2015. Acadia has a Parkinson's Disease drug in late stage trials that Kramer said looks promising. He said the company's Alzheimers agitation drug in its pipeline may also show the ability to be a game-changer.

"Last September Avanir Pharmaceuticals had a similar trial for a different type of drug that was very successful. That company later got bought by Osaka in Japan for $3.5 billion," said

He remains positive on NXP Semiconductors (NXPI) - Get Report , which has seen its stock rise 7% in 2015. Traders were concerned by the company's fourth quarter earnings outlook, but Kramer said he is unbowed.

"I believe they are really trying to clean out their inventory channel so they can set up for their merger with FreescaleSemiconductor (FSL) and start the first quarter with a clean slate," said Kramer. "I think they were trying to reduce the uncertainty and get out ahead of it so when the merger is complete you can really see the synergies of the combined company."

Finally, Kramer is a fan of Visa (V) - Get Report , up 20% this year, because he sees the global economy moving further toward a cashless society.

"Millennials carry less and less cash today and more transactions are being done over the phone or by credit card and that will grow over the coming years," said Kramer. He added that the company's recent purchase of Visa Europe is a nice addition.

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