October 23, 2007
JAG Advisors is an asset management company based in St. Louis, Missouri, offering separately managed account management services to individuals and instituttions. This week we spoke to president and CIO Norman B. Conley III, who deals with their large cap growth account. These were five picks from his interview:
- Precision Castparts (PCP)- Precision Castparts manufactures complex metal components, primarily for the aerospace industry. Though not a household name, they are a $20.5 billion company, that has consistently outperformed consensus analyst estimates- in fact- they have done so in seven of the last seven quarters.
- Google (GOOG)- Ever heard of them? They’ve been in JAG Advisors portfolio for the past two years. They have attractive earnings momentum, with no expectation of slowing down anytime soon.
- Celgene (CELG)- Celgene is a biotechnology company that develops drugs to treat autoimmune disorders and cancer. The Street expects them to post double earnings this year. JAG expects 40%-50% earnings over the next two years. As Celgene trades at 40 times forward earnings, its forward p/e ratio is below its growth rate, leaving room for further upside.
- American Movil (AMX)- A Latin American wireless company, was first purchased by JAG in Decmeber 2004, and their still bullish about it. They feel it’s undervalued at 16 times forward earnings, seeing as grown 30% annually over the last several years. Investors have simply been misvaluating due to the fact that the company is Latin American.
- Gamestop (GME)- For those of you who never were 16 year old boys, Gamestop is the leading domestic retailer of video game software and accessories. JAG sees this as a great stock going into the holiday season, due to their dominance in the marketplace.
For our full investing strategies report, including interviews with 5 different money managers and more stock picks, click here.
