Tiffany may sell expensive jewelry, but its shares are reasonably priced when using an EVA valuation, says James Abate, portfolio manager for the Centre American Select Equity Fund. Gross margin for Tiffany will improve now that silver has come down in cost, says Abate. He is also bullish on Google which he says is cheap relative to Yahoo, as well as small cap companies in general. Finally, IBM has underperformed in the past year, however, Abate says profits margins will improve and the business will turn around once it starts investing back in its own business as opposed to its shares.

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