Hedge star Jabre sees bargains in bombed-out stocks

A

ASusilovic

LONDON, July 2 (Reuters) - Many stocks in heavily discounted sectors such as banks and industrials still look cheap, says hedge fund manager Philippe Jabre, although he has trimmed his large weighting in equities after the recent rally. The former GLG (GLG.N: Quote, Profile, Research) manager, whose Geneva-based Jabre Capital Partners runs around $3 billion in assets, said stocks whose share prices were battered last year can benefit from easier access to credit, less competition and improving margins.

"There's money to be made in sectors that were the weakest," he said in an interview this week.

"You have a lot of stocks that are cheap in this market, hit by deleveraging of investment funds.

"Industrials are very bombed out. Six months ago everyone as scared about bankruptcy. Ford was $2, now it's $6, but why should it stop at $6 if it's making money and competitors are bankrupt?"

http://in.reuters.com/article/governmentFilingsNews/idINWLA816020090702
 
err. i think they are still overvalued, correct me if im wrong, but equities have really gone ahead of fudementals, and if you think theyre are cheap now,i think we should wait.

do people have the opionion that the dow, s&p500 will rocket due to inflation? if so then maybe.

this "green shoots" rally has news that avocate people should buy on dips and everydrop, but accoding a local fiance mag, asian equities have a net outflow since june, retail investors before july have been snapping up what the insituional invesotors have been selling. (I can;t bring up the link, it was in print)

just my 2 cents.
 
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