S&P 500 up 10% Over Next 12 Months? Olstein joins Bulls and Bears
In an earlier post I referenced Bob Olstein and his Financial Alert Funds success since 1995, returning 16% per year. The following is a transcription of Olsteins appearance on the Fox News Channel show Bulls and Bears on Saturday June 11, 2005. Keep in mind that this show is trying to entertain as well as inform. Id put the most credence in his S&P 500 prediction.
Bob Olstein on Bulls and Bears June 11, 2005
Q: What are you doing with the tech stocks? Are you talking profits on the tech stocks?
Olstein: Weve sold a lot of the tech stocks that we own. Basically, we are still buying stocks that are under siege. I think the glass is half empty philosophy is around right now and in predictions Im going to tell you where to start.
STOCK WINNERS:
Q: A little over a year ago you picked Unova (UNA up 23% since prediction), a company that specializes in data collection and computing products, and while the overall market has gone no where this stock has made a very nice move. Are you sticking with it Bob?
Olstein: Well we took some off the table, the stock is fully priced here. The big play going forward, youre going to have to wait a while, is that RFID technology, the new radio tags. They are going to take over in 2-3 years. Tobin is very bullish on it, I think Tobin should (couldnt make out the rest of the sentence).
Q: Are you still bullish on it? Do you own some of it still?
Olstein: We continue to own it in the fund, but again Id wait for a pullback before Id buy some more.
SCOREBOARD LOSERS:
Q: At the end of last year you said major media mergers were coming and investors should buy Gray Television (GTN). Well nothing yet and Grays gotten cheaper, falling around 30% or so. Do you still own the stock?
Olstein: We still own this stock. Its now in the bargain basement (laughs). Basically we own the stock. Its down to about $10.80 a share. We think it's worth $15, not as high as we originally thought. We were a little too optimistic on the cash flow but we think were going to make our money back.
STOCK PREDICTIONS:
Olstein: I dont want to confuse my Bull and Bears colleagues but the S&P earnings are going to be about $78 according to our projections next year.
Q: Is it going up?
Olstein: Its going up 10% in the next 12 months at least and I think you can go in there and buy undervalued securities.
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