Stock Talk - Jason Lilly, Rockland Trust

We're joined by Jason Lily from Rockland trust and we're joined on the day -- well it's kind of a mixed bag for stocks -- it is next Erica the Dow is down a -- down 26 points to twelve -- 51. NASDAQ is down eighteen the S&P 500 is only -- as it's up three excuse me. The treasury 8010 year treasury is flat at one point ninety -- gold is up seventeen dollars fifty cents a 1735. And you've got oil well it's trading up 86 cents to 101 dollars 59. Cents a barrel there you go merry go all right sorry but Jason has a stock market tree near my friend. We're doing pretty good today Perry thanks for asking. Good hey let's talk about your picks I see -- you liked Disney in the symbol for this is DI yes yes right. Yes yes yes he had great well known brand. But the global presidents. That has really underperformed the broader market and the sector of the last twelve months. Why -- elected to it would isn't a big eight you know about it I mean -- they've got a great brand. They also own ESPN don't think. They do as well as ABC eight other TV stations 35 radio stations. Of course -- theme parks. For a valuation perspective it's certainly is interesting it's trading at a discount relative to where typically trades -- system market. It is coming off eight. Previous quarter that had really difficult two parables. So little bit of breathing room more detail and if you will entitle it to 2012. And they have some good things coliform what is they just renegotiated with Comcast -- in a ten year deal that has. Bit. Better economics -- the previous so that should help margins and helped earnings. Now Jason I don't on this yet today but if I were to buy it for 41 dollars and 52 cents which seems to be a market price fort. Would you think you might be worth twelve months from now your first couple years from now. Yeah -- expects. 10% return so so we got a target price of about 49 dollars and we tend to be a big conservative. And it's got to dividend on -- two about one and a half percent or. It has. It's not too exciting but it does take something cash flows healthy in the seven and a half -- eight billion dollar range what we're we're model for the next twelve months. They have committed to share buybacks which should certainly help from earnings growth rate. Okay you're next pick is air products the symbol fort APD. And -- -- short trading today it's actually up today at ninety dollars and 97 cents per share this one has a pretty healthy dividend as well over 2%. Good dividend actually think it's closer to one half percent you know it did it and and what we -- Think the company has always treated at a discount to its competitor Praxair. For a number of reasons. But in our view that discount has just tapped out too much. I'm in what we've seen in in the past is there is that he ever. So it seems like you to -- entry point for investors. India what do you think -- fair value estimated on the stock is like you what do you think it's really worth I know you can buy for ninety's but is it worth a 10020. Yet -- they -- it's worth close to a hundred dollars. And that's one of the nice things about about a company in the in the business model about 60% percent of its revenues come from long term contracts and they've got these take or pay contracts so if you concerned as an investor from a global slowdown. Economically. The companies that it insulated. From based on the long term take or pay contract for another interesting element is that they. They aren't. They have the largest market share when it comes -- hydrogen and hydrogen is key and put in there are fine. Of heavy crude oil -- On which certainly has been made long term trend. So that it another interesting dynamic. And get your right your last pick is Medtronic and that's a local Massachusetts company -- Medtronic is not. They're -- in this. I remember correctly I'm Boston scientific and other competitors is Boston's -- -- to. Yeah and so we like electronic little bit better than Boston scientific and actually one of our. Investment teams is that they will take market share from Boston side this year particularly in the striking it Arctic. Okay and you're getting at 2.4 percent dividend on this 39 dollar share price. Data is running point 95 so it's not for the faint of heart alien who we would do you think it's a fifty dollar stock. You know we get closer to fifty dollars or -- it under those are. Target price. All right Jason great research appreciate appreciate your time. -- -- -- That's Jason -- from Rockland trust joining us today. On the financial exchange with his three stock picks they included Disney DIS air products EPD and electronics and DT.