Well-known value investor Michael F. Price of MFP Investors was on Bloomberg to discuss U.S. stock markets, where he is finding the value, banks, consumer and business demand outlook and J.C. Penney. He also shared his views on the economy, unemployment and high-frequency trading.
-- There is lot of pent-up demand from consumers and businesses due to macroeconomic and political uncertainty.
-- Once uncertainty is removed consumer and businesses will spend and one of the key beneficiaries will be J.C. Penney (JCP, Financial).
-- JCP is trading at half of its intrinsic value. Remember that they have excellent real estate and there is lot of value there, even if you forget about their business.
-- Ron Johnson is doing all the right things at JCP.
-- America is the place to invest in this kind of low-interest environment but U.S. stock market is fairly valued
-- Don't invest in the stocks based on macroeconomic factors, but pick stocks based on bottom-up fundamental value of the businesses.
-- Advice for investors in this uncertain environment: Stay the track with good money management shops with low fee; GAMCO is good, and so is Franklin Group.
-- Banks: Thumbs up on Citi (C, Financial) and JPMorgan (JPM, Financial). Vikram Pandit was the right guy for Citibank after the financial crisis.
-- High frequency trading is making stocks transactions inefficient.
-- Likes industrials; they are liquid and acquisitive. He likes Ingersoll Rand (IR, Financial), Tyco (TYC, Financial)'s upcoming spin-offs
Credit and source: www.bloomberg.com, Bloomberg
Here is the video:
http://bloom.bg/QrWaZY
-- There is lot of pent-up demand from consumers and businesses due to macroeconomic and political uncertainty.
-- Once uncertainty is removed consumer and businesses will spend and one of the key beneficiaries will be J.C. Penney (JCP, Financial).
-- JCP is trading at half of its intrinsic value. Remember that they have excellent real estate and there is lot of value there, even if you forget about their business.
-- Ron Johnson is doing all the right things at JCP.
-- America is the place to invest in this kind of low-interest environment but U.S. stock market is fairly valued
-- Don't invest in the stocks based on macroeconomic factors, but pick stocks based on bottom-up fundamental value of the businesses.
-- Advice for investors in this uncertain environment: Stay the track with good money management shops with low fee; GAMCO is good, and so is Franklin Group.
-- Banks: Thumbs up on Citi (C, Financial) and JPMorgan (JPM, Financial). Vikram Pandit was the right guy for Citibank after the financial crisis.
-- High frequency trading is making stocks transactions inefficient.
-- Likes industrials; they are liquid and acquisitive. He likes Ingersoll Rand (IR, Financial), Tyco (TYC, Financial)'s upcoming spin-offs
Credit and source: www.bloomberg.com, Bloomberg
Here is the video:
http://bloom.bg/QrWaZY
