CNBC"Street Signs" May 22, 2008
Against the backdrop of turbulent markets and a less robust economy, the Calamos investment management team is finding a wide variety of long-term opportunities. In the May 22, 2008, broadcast of CNBC's "Street Signs," Nick Calamos highlighted two companies that meet his team's growth criteria.
In this broadcast, the co-chief investment officer of Calamos Investments discussed his positive outlook for IHS, Inc., a company in the industrial sector that provides software, data, and parts services for the energy, construction, and aerospace industries. IHS, Inc. offers the Calamos team a strategy for tapping into longer-term secular trends (such as infrastructure building), with reduced cyclical vulnerabilities common to many traditional industrial companies. IHS, Inc. is also positioned to benefit from the energy sector's growth, but is less directly tied to volatile commodity prices. Nick cited the company's high return on invested capital as another compelling merit.
Within the technology sector, the Calamos team is bullish on Dell Computer. "I think it's a very cheap stock right now, with free cash flow yield of about 9%. [Dell is] buying back stock. Michael Dell is back at the helm … the right guy is in charge and we're excited about the stock," Nick said. As the economy slows and consumers become more cautious, Nick believes that Dell offers "good upside in a market where low-cost producers should be winning again and [Dell is] on a cost-cutting focus right now."
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It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations we make in the future will be profitable or will equal the investment performance of the securities discussed herein.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only should not be considered investment advice.
As of March 31, 2008, the top 10 holdings in the Calamos Growth Fund, followed by percentage of assets represented, are: Apple, Inc., 4.14%; Gilead Sciences, Inc., 3.57%; Google, Inc., 3.52%; Research in Motion, Ltd., 3.49%; Nike, Inc., 2.75%; Amazon.com, Inc., 1.79%; Smith International, Inc., 1.52%; EMC Corp., 1.44%; Honeywell International, Inc, 1.36%; Nintendo Co. Ltd, 1.34%.
Important Fund Information
The Fund may invest in mid-size and small companies which present greater risk and higher volatility than investments in larger, more established companies. The Fund may also invest up to 25% of its assets in the securities of foreign issuers. As a result of political or economic instability in foreign countries, there can be special risks associated with investing foreign securities, including fluctuations in currency exchange rates, increased price volatility, and difficulty obtaining information.