Bill Hench Talks About J C Penney Company Inc (JCP) And Carbonite Inc (CARB)

In a featured program on Fox Business, Royce & Associates portfolio manager, Bill Hench, gave tips to viewers on investing into small caps. The investor education program kick-starts with a recap of how the small cap story has been a “bit of disappointment over the past six months for retail investors as the Russell 2000 index has underperformed the S&P 500 index.”

J.C. Penney Company, Inc. (NYSE:JCP)

Bill Hench, who is also the manager of the Royce opportunity select fund, was asked on the program on his views about existing commentary in the market about valuations in “biotech, social media and small caps” went on to highlight to viewers that, the “small cap world is huge. If we look at our universe of (small caps) a little over 15 percent of the names underperformed the Russell index at the half way mark of the year.”

Calling out the fact that “ we see opportunity in small caps this year, Mr Hench went on to share some tips for picking winning small cap stock to invest through the rest of the year.

The first tip he shared was that, “the most important thing is your entry point. You are going to get only one chance to buy a stock at the right price”. He advised investors to pay close attention to how much they pay for their stock, so that in the event of their bets going wrong, they won’t have to suffer huge losses, but can move on to other investment opportunities. He nailed the argument by saying that he is very much disciplined about price. He then went on to advise investors to diversify their stock holding, and look for companies which have a good turnaround story and have a competent management team.

Mr Hench then went on list out the top five small cap picks for his viewers to consider as investment opportunities. His list included the much paned retailer J C Penney Company Inc (NYSE:JCP). Mr Hench pointed out that in the event of J C Penney Company Inc (NYSE:JCP) managing to “get their debt in order and raise cash and get their customers back, which they have done and make a little bit of money”, then the stock would be a strong performer.

Carbonite Inc (NASDAQ:CARB) which is a $289 million cloud solutions and services provider also made it to Mr Hench top 5 list. He described the business run by Boston headquartered Carbonite Inc (NASDAQ:CARB) as a simple story, and went on to explain that, “They provide you with back up service for individuals. They do it for small business too, and have a good cash flow and is managed by a good set of people.”


Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!