Mario Gabelli (Trades, Portfolio), head of GAMCO Investors and famous for the private market value metric, appeared on Bloomberg TV on Aug. 27. He spoke about a number of different topics and investment ideas. Here's a summary:
Geopolitical tension
Gabelli asked himself whether the tax rate is sustainable. What does global growth look like? What impact does this have on currencies and the U.S. dollar? Forty percent of S&P 500 earnings are coming from outside of the U.S.
Viacom (VIA) and CBS (CBS)
Gabelli thinks it is a good deal and thinks Viacom is a buy. Maybe Amazon (AMZN) or Sony Corp. (SNE, Financial) will come in and buy CBS-Viacom or merge segments. With Fox (FOXA) and Disney (DIS) having come together, there is more pressure to consolidate.
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Infrastructure
CEOs on earnings calls are hesitant to make commitments on investments. You cannot run this country without an infrastructure bill. There are 500,000 bridges, and 200,000 need help. You have to find a way to do more than gasoline taxes, Gabelli said. How do you charge user fees on electric vehicles?
Some investment suggestions:Â
Herc Holdings (HRI, Financial)
United Rentals (UR, Financial)
Other picks
Kaman Corp. (KMN) has a $400 million dollar market cap and $300 million in cash. It is a state-of-the-art component manufacturer to Boeing (BA, Financial) and Airbus (AIR, Financial).
Ryman Hospitality (RHP, Financial), which owns the Grand Ole Opry.
Sony Corp. (SNE, Financial) is allocating a variety of resources and received a tailwind from streaming. It also has a new Playstation coming out. trades at 6x Ebitda and has a good balance sheet.Â
Disclosure: No positions. Author may invest in Viacom (VIA) in the next 72 hours.
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