In an interview with CNBC’s “Closing Bell” last week, Jonathan Boyar discussed the Boyar Value Group’s list of 40 stocks they believe will outperform the major indexes over the course of the year.
Standouts for 2020 include Discovery Inc. (DISCK, Financial), Madison Square Garden Co. (MSG, Financial) and Hanesbrands Inc. (HBI, Financial).
Discovery
Boyar said that Discovery is in an out-of-favor industry, but is able to produce quality content for significantly less than other media companies and has a large subscriber base. He also noted that media mogul John Malone recently upped his stake, buying $75 million worth of shares.
“The last time he did that, the shares were $18. Now it is a $30 stock,” he said. “He is usually a pretty good indicator.”
He also said he believes Discovery is a good acquisition target for larger media companies, especially if “shares continue to languish.”
Madison Square Garden
In regard to Madison Square Garden’s hidden value, Boyar said the stock, which he believes is worth close to $400, is at peak pessimism currently since the “Knicks couldn’t get any worse and the Rangers are doing fine.” The asset value currently is tied to both teams, and investors are getting Madison Square Garden, the air rights above it, the entertainment business, the LA Forum and Radio City Music Hall for free.
“So it is significantly undervalued,” he said.
Hanesbrands
According to Boyar, the struggles Hanesbrands has faced over the past several years have been tied to the closing of retail stores like J.C. Penney (JCP, Financial) and Macy’s (M, Financial) even though it has terrific brands.
“It’s not just Hanes. It’s Champion. Champion is growing tremendously each year,” he said. “That’s a company that could potentially spin out. They could spin out Champion and that would certainly help the stock as well.”
He also noted the company has done a good job of deleveraging and could also be a private equity takeover target if the stock continues to languish.
Another name on the list is CNBC’s parent company, Comcast Corp. (CMCSA, Financial).
Watch the full interview below.
Boyar, who is the president of Boyar Intrinsic Value Research, will also be speaking at the 2020 GuruFocus Value Conference in Omaha, Nebraska on May 1. For tickets and more information about the event, please go here.
Disclosure: No positions.
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