Long Model Candidates

  • Technology: Previous selections (Apple (AAPL), Cisco (CSCO), Research In Motion (RIMM) and Oracle (ORCL)) are now fully priced and have been dropped from my buy list. Remaining are Microsoft (MSFT), Dell (DELL) and Qualcomm (QCOM).
  • Financials: I'm dropping mortgage REITs and Visa (V). Remaining are Bank of America (BAC), SunTrust (STI), Regions Financial (RF) (convertibles), Legg Mason (LM), Prudential (PRU), MetLife (MET), Hartford (HIG), PNC (PNC), State Street (STT), Berkshire Hathaway (BRK.A), Cohen & Steers (CNS), Weingarten (WRI) (convertibles), SL Green (SLG) (convertibles), Chubb (CB), Loews (L), National Financial Partners (NFP) (convertibles) and Sallie Mae (SLM).
  • Energy: Dropping extended integrated oils and several oil service companies. Remaining are Transocean (RIG), select master limited partnerships (MLPs).
  • Health Care: Select depressed HMOs -- a true contrarian play!
  • Consumer Staples: Procter & Gamble (PG), General Mills (GIS), Unilever (UN).
  • Industrials: 3M (MMM); PPG (PPG), Union Pacific (UNP).
  • Consumer Discretionary: Home Depot (HD), Lowe's (LOW), Disney (DIS), Nike (NKE), Wal-Mart (WMT), eBay (EBAY), Starbucks (SBUX).
  • Materials: Freeport-McMoRan Copper & Gold (FCX), BHP Billiton (BHP).
  • Utilities: Duke Energy (DUK), Dominion Resources (D), PG&E (PCG).
  • Telecom: Verizon (VZ), AT&T (T).
  • Credit: Select bank loans/debt, high-yield debt.
At the time of publication, Kass and/or his funds were long MSFT, DELL, RIG, BAC, STI, BRK.A, CNS, SLM,LM, WRI converts, SLG converts, Regions Financial (converts), CB, L, NFP converts, MET, PRU, HD, LOW, DIS, SBUX and FCX , although holdings can change at any time.

Doug Kass is founder and president of Seabreeze Partners Management, Inc., and the general partner and investment manager of Seabreeze Partners Short LP and Seabreeze Partners Long/Short LP.

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