Leclerc was quoted in a recent Forbes article featuring the top 2014 investment ideas from advisors and money managers. He told Forbes:
“One sector in the admittedly expensive U.S. stock market that remains attractive is ‘mega-cap’ IT Companies. They are selling for low multiples of earnings/cash flow. They represent relatively high current shareholder rewards: the dividend plus buyback yields are more than 5% (and the payout ratios are low with room to grow). As a group, they represent high financial strength. Admittedly, they have disappointed investors over the past couple of years but I argue that has been baked into their current valuations.”
The portfolio manager said Cisco is a “dominant player” in global telecommunications infrastructure that has grown by acquisitions and possesses industry leading financial strength.
Regarding IBM, Leclerc told Forbes he likes the company’s balance sheet and significant economies of scale.
Read the full article here.
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