Right now investors are paying for earnings growth and they are unwilling to pay almost anything if you don't deliver earnings growth, ... Tenet is up near all-time highs. Maybe you don't pursue that as aggressively as, say, a Costco, which is maybe off 20, 25 percent from its highs. But the focus is on the earnings growth here.
We are bullish on the market. You mentioned...that we've upgraded some target prices on technology shares, but we're also trying to focus on the value areas of the market, too, because a lot of excellent companies delivering double-digit earnings growth are trading at below-market multiples, and we think are good values here.
We are bullish on the market, ... You mentioned...that we've upgraded some target prices on technology shares, but we're also trying to focus on the value areas of the market, too, because a lot of excellent companies delivering double-digit earnings growth are trading at below-market multiples, and we think are good values here.
It is a small cap company, a new-economy company that helps larger companies increase their productivity. Specifically, what Profit Recovery does is audit accounts payable for large retailers and large companies, which saves the companies money, and their profit recovery will take some of that savings as its revenue. It's moving into the Internet space to audit online transactions. It's trading at about 30. We've got a target of 50 on this company.
They've got a database of images and they sell it to newspapers, magazines, ad agencies and it's a lot cheaper for these outfits now to license an image from Getty than to hire a photographer to go out and take the image, ... So it's a money saver right now. But as the business evolves, it's building a dominant position, name and distribution strategy and we think it can very much control this market.
The Fed is moving to the sidelines, 50 percent of the regional banks businesses as a rule are still related to the direction of interest rates. We think interest rates are headed lower. Capital markets remain very active. Fleet is in that business. They have an investment banking division, too, now. So the shares are quite cheap at about 13, 14 times earnings.
Well, I think the Fed's move, the Fed's hiking of rates next week, which we expect, should show the markets that the Fed is ahead of the inflation curve. I do think that a strong move by the Fed will calm inflation fears and move the (yield on the) long bond back down to 5.88 percent or 5.9 percent.