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Michael Price Long on Bank of America, Citigroup and Harris Corp.
Posted by: guruek (IP Logged)
Date: February 8, 2010 11:48AM
Michael Price, managing director of MFP Investors LLC, talks with Bloomberg's Tom Keene and Ken Prewitt about his investment strategy. Price also discusses the outlook for banking industry consolidation and Kraft Foods Inc.'s planned takeover of Cadbury Plc.
On investors can benefit from M&A deals, he said that you want to own the company that is being acquired, not the company acquiring.
Recent earning disappointments and litigations have brought many companies to a price level that is prune to be taken over. Michael Price mentioned he likes Harris Corp (HRS) as a candidate for M&A player. HRS makes radios for the military and has a clean balance sheet, the business is a good one to be in.
Among the financials, where many M&A activities are going on, Michael Price thinks the actions are in the regional banks, but one has to be choosy on the geographic footprints of the bank branches.
Deviating from his topic of M&A, Michael Price revealed he is long on Bank of America and Citigroup. He like BofA for its long term earning capability and branded the current criticism on the company “silly”.
Watch the Bloomberg Video:
(interview. Source: Bloomberg)
Guru Discussed: Michael Price: Current Portfolio, Stock Picks
Stocks Discussed: BAC, C, HRS,