SYNNEX Corporation (NYSE:SNX) and Microsoft Corporation (NASDAQ:MSFT) are stocks that Scott Black and Ernie Cecilia like, the two executives divulged in an interview on Fox Business Network.
The revelations were made by the Cecilia, Bryn Mawr Trust CIO, and Scott Black, Delphi Management President, as they were discussing whether there was really growth in the economy in terms of the GDP. The group was also tackling whether the increase in GDP is really being felt by ordinary Americans.
Comparing companies that they like, Scott Black went first by describing why he likes SYNNEX Corporation (NYSE:SNX), a mid-cap stock, and ON Semiconductor Corp (NASDAQ:ONNN)].
“Two of the companies that I’m going to recommend today are mid-cap stocks. One is SYNNEX Corporation (NYSE:SNX) which is an IT distributor in Fremont. I just visited them and the stock is selling at roughly ten times next year’s earnings. The earnings will be up about 9% to 10%. The other one is a little company not well-followed called [ON Semiconductor Corp (NASDAQ:ONNN)]. It’s based in Phoenix but they have the old [LSI Corp] fab up in Grisham. It’s a giveaway. The stock is [at about] $8.65. They are going to earn $1 [per share] for the coming fiscal year. They earn about 20% on book and generate cash. There are opportunities but you have to dig very hard to find these obscure stocks,” he said.
As for Microsoft Corporation (NASDAQ:MSFT), Ernie Cecilia said that his firm likes large cap tech companies, particularly the Windows-maker. He said Microsoft Corporation (NASDAQ:MSFT) is going in the right direction under the guidance of Satya Nadella.
“Microsoft Corporation (NASDAQ:MSFT) in particular has performed well. We like the direction the new chairman is taking the company. One of the themes really has [been] a rebound in capital spending. You see the rebound in capital spending also in the technology side particularly on enterprise spending so we see Microsoft a beneficiary of the could enterprise as well as mobile communications. We like the fact that he is doing it and we like the fact that he is taking a hard line. Although it is difficult laying off people, we think the direction is positive from Microsoft,” he said.
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