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Mittleman Brothers Managing Partner Chris Mittleman on how investors can profit despite the sluggish economy and volatile markets.
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PPI retail sales.
It's all just noise is at least.
That's what -- money manager says he thinks the obsession with the macro or big picture is just distraction from great fundamental opportunities.
Christmas homeland is managing partner and chief investment officer at middlemen Brothers good to see you thank you for being here again so you sit back -- macro what do you look at -- if you're not looking at the overall picture of 30000 feet.
Well we don't ignore the macro picture we consider it is just not the driver for the investment process there's so many great investment opportunities.
That are gonna do well regardless of whether or not the Euro stays together or breaks apart.
Your last guest was talking -- Gold went up tremendously during the seventies during a horrible time for stocks in general.
There were great investment fortunes made during the seventies guys like Warren Buffett Marty Whitman tweedy Browne.
You can make money in a tough environment companies that began like FedEx for example which I -- represent Begin at a worst of times.
Let me just ask though the stocks that will hold up during the worst of times to come.
One of those stocks that you mentioned is harbinger group this is so far -- harbinger group correct sure why do you like -- We'll -- thought cones investment vehicle HIG -- younger group.
Is a real classic.
-- Graham and Dodd value which about a dollar's worth of assets for sixty cents.
We think the NAV is around 750 and that's using all the publicly traded companies that they own.
At current market price I get worried about Phil Falcone group and is that her addiction -- is that part -- -- I think right at the rock and rock chart up there on May -- -- well -- -- made -- huge multi billion dollar investment in doing what's called lightsquared and there was a horrible report out today are you saying on the contrary and jump in now well actually the lightsquared investment is owned by harbinger capital partners which is a hedge fund a lot of people confuse the two harbinger capital group.
A harbinger group is a publicly traded company that is not actually look at the same as a hedge but it's still you know you look at that the opportunity there and you're still making a bet on that.
Well no actually -- we don't own it.
You -- RG does not own any of the lightsquared investment it may at some point in the future let me now.
At this point it's not affiliated with -- -- maybe that's why is it looks better for -- the stocks four dollars and thirty cents we think it's we're 715 minimum today.
That's just based on the liquidation value -- -- very quickly what do you like it.
Revlon I think is around fourteen dollars I've spoken about before.
We think it's worth 24.
That's only nine times -- about twelve times free cash -- -- entirely recession proof business.
Ebitda margins 19%.
20% market share of their key products and -- now and Estee -- they're trading it.
1011 times ebitda so there's a valuation disparity we think it's unfair with -- I think it has to do with the fact that small cap.
Not well we've only one analyst on Wall Street -- -- so it's kind of under the radar screen well -- you know I've heard people say exactly that the -- wants a real opportunity even though it is under that greater good to see you -- -- -- for being here Chris -- of middlemen brother.
