The secular move toward renewable energy will keep shares of Solar City (SCTY) heading higher even as fossil fuel prices continue to drop, said Joseph Zock, portfolio manager at Tocqueville Asset Management. ‘It really is uncorrelated and it will take the market a while for people to realize that,’ said Zock. Shares of Solar City have fallen over 8% so far this year. Zock is also bullish on McDonald’s, up 8% year-to-date, despite the fact that the restaurant giant is struggling with changing consumer tastes and a long history of negative public relations. Zock said the fast food giant could be restructured in a way that would create substantial value for shareholders by capitalizing on its underleveraged balance sheet, shifting further toward the high return, asset light franchise model, and unlocking hidden real estate value. Furthermore, he said he believes the restaurant behemoth’s new management has the ability to revive growth via modifications to the menu and service. ‘As they emerge from this decades long PR problem the stock should be added to many portfolios,’ said Zock, adding that the company’s 3.4% dividend makes the stock attractive while McDonald’s management turns it around.
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