Investment theme: American-Stars
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Goodyear | GT | Tires | 19.6 % | 3.63 |
| Investment case: GT achieved a number of milestones in 2013: it is reinstating a dividend on its common stock after 10 years and its US pension plans are now fully funded. Goodyear’s North American operating profit jumped 72% in Q4. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Walgreen | WAG | Retail | 7.5 % | 4.64 |
| Investment case: March sales show continued strength. Walgreen said it expects its store count to increase to 75 by December 31, 2014. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Wyndham | WYN | Hospitality | 13.8 % | 5.38 |
| Investment case: WYN has a strong market position in the timeshare market segment, which is improving given better global economic conditions. Wyndham’s fiscal Q2 earnings climbed to a better-than-expected 3.9% as revenue grew in all three of its major segments, led by its Lodging business. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Precision Castparts | PCP | Manufacturing | 20.7 % | 5.85 |
| Investment case: PCP has significant exposure to the commercial aerospace market, which is cyclical. With travel activity set to increase in Asia, the sector is facing higher commercial aircraft demand. In the industrial gas turbine (IGT) market, past overcapacitiy has gone. Precision’s fiscal Q3 profits climbed 28% after a string of successful acquisitions. | ||||