On Friday, May 13, I appeared on CNBC’s “Nightly Business Report” as the night’s market monitor to discuss misunderstood investments and our long-term, value oriented philosophy.
We began the discussion around retail stocks, and why Urban Outfitters Inc. (URBN) falls into this misunderstood category. They are cast as a teen retailer and mall-based, however they aren’t really either of these. Their revenue is from the older teen and college age shopper demographic as well as from women’s clothing, which tends to come from the high-end women shopper. The exciting thing is that the company goes after millennials and where they want to shop, which is in urban areas and next to colleges, so the company is well positioned.
Next we moved to V.F. Corp. (VFC). They are underperforming because nearly everyone who makes jackets is underperforming this year, likely because it was a warm winter. But we see them as a strong company with a stable of brands including Vans, Timberland, North Face, among others. They are excellent retailers and merchandisers, they know what people want and do it in a very cost-effective way.
Finally, we addressed the technology sector, and why Intel (INTC) is also misunderstood. Intel has made the most of its gains selling PC processor chips, but we think they are going to move into mobile devices more and even cars as everything is getting ‘smarter.’ We think Intel has the technology that will drive our smart devices.
Click the image below to view the segment (begins at 17:50).