Hot Stock Picks from five investment

Surge in the market in the past few months has been canceled various stocks. However, many stocks are still misunderstood by the market to find undervalued, or in some cases, severely overvalued.

This is one of the takeaways from the Sohn Investment Conference, an annual event held in New York City to raise money for childhood cancer research and treatment. Hedge fund managers, venture capitalists and other large investors took the stage at Lincoln Center on May 8 put forward some of their best ideas, provided on what to buy, what short selling (share price drop to profit off of technology) tips.

Some of the points may be too esoteric or risky for most investors. One fund manager close profitable investment ideas A bad Italian Luo purchased by UniCredit shares. He also suggested betting against the British government (he does not think will do well in the aftermath of Brexit) bond issue. Hedge fund billionaire David Einhorn recommended for short energy services company’s core laboratory (CLB symbol, price $ 106.76). (Stock price is on the 9th of May)

Howard Hughes

Another billionaire hedge fund manager Bill Ackman, vote shares Howard Hughes (HHC, $ 128.01), the overall community planning and development of commercial real estate. Ackerman’s company, Pershing Square Holdings, is the largest shareholder Hughes, and Ackerman said it was for many years the ‘best investment opportunity. ‘

Continental

A more mainstream idea, we liked was recommended by the ion Brad Gerstner, Altimeter Capital Management, the hedge fund’s founder is headquartered in Boston and CEO, buy airline stocks, in particular, United Continental Holdings (UAL, $ 78.55). Airlines from the wave of consolidation, resulting in fewer carriers, bulk face less pressure to decorate the ticket price benefit, it all led to record industry profits.

United States looks very attractive, Gerstner said that despite the recent negative publicity about its forcibly removed passengers. The airline operates a fleet of high-quality aircraft, to major tourist centers such as New York, Chicago, San Francisco and Los Angeles directional route network.

United profit margins are low, partly because of its high combined with Continental. But mergers and heavy late fees fade, and the company has been assumed by the United States to follow these plans, the demand for air travel remains strong developed a plan to enhance the profitability of the industry average in 2020, Gerstner stock is expected in the next three large $ 170 years.

Gerstner was not the only big investors who see the value in the airline. Buffett has taken the equity value of more than $ 7 billion in American Airlines (AAL, $ 47.08), Delta Air Lines (DAL, $ 49.56), Southwest Airlines (LUV, $ 58.28) and the United Nations, according to Berkshire Hathaway the latest file submitted (BRK.B, $ 163.46), the company responsible for his people.

Tesla

There is a huge potential stock Tesla (TSLA, $ ​​321.26), Charles Matt Palley Appy Tia, social capital the official said, a venture capital firm. Tesla looks like a pple (AAPL, $ 153.99), as, when the company released its first iPhone in 2007, he said. The phone has revolutionized the mobile phone industry and the birth of ecosystem goods and services, while Apple’s profit falls usher

Tesla’s sales in those early days similar to Apple’s iPhone tracking, Palihapitiya says . The company plans to launch its first mass-market car models in March this year, could eventually capture 5% of global car sales, surpassing BMW (BMWYY, $ 32.38) and luxury automobile manufacturers. Tesla also should be better than the traditional car manufacturers more profit, because it is inexpensive to manufacture, which controls its own distribution, and its vehicles are packed with high-margin software and technology, such as autopilot function.

In addition, Tesla is not just a car company. It also runs a solar panel business (Solar City) and the Giants “Gigafactory”, which makes lithium-ion batteries used in the Tesla energy storage products and cars.

Palihapitiya estimates, Tesla Motors business alone could be worth $ 337 billion in ten $ 52One hundred million a decade of more than six times the company’s current market value. Coupled with the battery business, solar panels and any other Tesla CEO Elon Musk can cook, stocks may be 10 times higher for a decade from now, he said.

Tesla would not be a bold and innovative plan, though. The company is still burning through cash, you must deploy a lot of money to finance its expansion plans, it may be as high as $ 40 one billion, Palihapitiya said. Part of the funds may come from issuing more shares, which could lead to shareholder dilution and dragged down stock prices.

Buy the stock will get you a huge growth potential of Tesla. But Palihapitiya like Tesla convertible bonds, fixed income securities, convertible into a fixed number of shares. The convertible is not widely available to the public, though.

Century Internet

If you are looking for dividends, consider Century Internet (CTL, $ 25.03). The company shares had 8.6%, the S & P 500 index stocks with the highest return. Century Internet to provide fixed telephone and other telecommunications services businesses and consumers. The business has been sagging customers have given up their landlines.

However, Century Internet is expanding to more profitable broadband Internet and other services, and will get bigger this year, when Level 3 Communications plans to close the pending merger. The combined company will be heavily business-oriented telecommunications services, Keith Meister, the head of hedge fund Corvex Management said. The deal will “change the rules of the game,” he said, support from sales and profits Century Internet, and to help maintain its long-term target dividend. Mestre see the share price climbed to $ 34 within a few years, providing more than 40%, including dividends accumulated gains.

Emerging market equities

Another draw our attention to the idea that stock investments in emerging markets, it is recommended Jeffrey Gundlach, Doubleline Total Return Bond Fund (DLTNX) by a vote of comanager , a MEM error rate in the Kiplinger 25, our favorite no-load mutual fund lineup.

The development of the stock market has been lagging far behind the US stock marketIn the past ten years. After this period May 8, iShares iShares MSCI Emerging Markets ETF (EEM, $ 40.69), exchange-traded fund, the leading index tracks the development of the stock market, the cumulative return of 17.9%, while the S & P 500 Index, but 97.4% compared, the ETF has begun to sprint forward: it rose 24.8% in the past year, compared with 19.1%, S & P 500 index

Gundlach believe this trend will continue, in part because emerging markets US stocks look cheaper than a lot of share. (He also suggested that short the S & P 500 index, but we do not recommend it). Gundlach said, adding that investors should not worry about a stronger dollar, which hurt returns FO R US-based holders of foreign securities. Investors fear that as the Federal Reserve to raise interest rates, the dollar will be worth. However, this did not happen three times in the past the Fed embarked on a rate climbing, Gundlach said, it should not this time.