Oritani Financial Corp.(ORIT), Symantec Corporation (SYMC): Prospecting for Safe Stock Gains Part 2

Neither of these banks is a particular standout in the market, as both are just small, regional players. However, both are well capitalized and financially strong. Ocean First yields around 3.4% while Oritani Financial (NASDAQ:ORIT) yields a little over 4.5%.

O’Brien notes that both companies have large insider ownership and have been buying back stock. With improving returns on equity, both regional banks look like solid long-term holdings. A teaser, however, is the potential for an acquisition by a company looking to gain scale in the New Jersey market.

Although neither bank is likely to provide shocking upside, you get paid to own them and downside risks are limited.

A Tech Turnaround

Symantec Corporation (NASDAQ:SYMC) is a story of a tech company that went on a growth bender and wound up losing its way. Simply put, too many acquisitions strained the company and dragged down performance.

This has left the shares trading at a discount to its historic P/E multiples. However, based on a recently initiated plan to return value to shareholders via dividend payments and stock buybacks, it looks like the company is making important changes that could close that discount.

The most important change O’Brien sites, however, is a new leader. The company’s new CEO has an impressive pedigree, including stints at GE and Intuit. He has proven track record of reducing costs and increasing efficiencies. He’s already starting to work that magic at Symantec Corporation (NASDAQ:SYMC), including “lighting a fire” under the company’s sales force and a thorough review of its business offerings.

O’Brien expects to see unit sales and operational changes lead to increased margins and a nice bounce in earnings. With low market expectations and a renewed focus on shareholders, Symantec looks like a solid turnaround play.

Opportunity

Although O’Brien and his co-managers keep the downside in mind when they invest, finding that special catalyst that could lead to long-term gains is an important investment goal, too. The two regional banks and tech company above are a good combination of safety and potential.

The article Prospecting for Safe Stock Gains Part 2 originally appeared on Fool.com and is written by Reuben Brewer.

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