Investors should not be afraid that rising interest rates will chop down shares of Plum Creek Timber, says Andy Murray, portfolio manager for the Becker Value Equity fund. 'The shares have languished this year over concerns about whether this timber REIT gets curtailed due to rising interest rates, but when rates are rising we should see a continued recovery in housing starts as a reflection of an improving economy,' says Murray. 'When that happens we will see prices for their logs and timber as well.' April housing starts came in at 1.13 million last month, ahead of Wall Street expectations. Shares of Plum Creek, which pays a 4.2% dividend yield, are down over 4% so far this year. Meanwhile, Murray is also bullish on Amdocs which has seen its shares jump over 20% year-to-date. Murray says the telecom software provider’s stocks is surging on the company’s merits, not as a result of takeout speculation in an M&A crazed market. 'Management have a great long term vision to grow that company and they keep delivering and executing and the share price reflects that,' says Murray.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.