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Mittleman Bros. CIO Chris Mittleman and China-America Capital Company’s Tim Mullholland on the outlook for the markets and the opportunities still a...
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Anybody Chris middle -- is a guy -- excited about this atmosphere.
He's managing partner and chief investment officer at middlemen Brothers and again we promised our guests we would our viewers rather that we would.
Really put this into perspective Chris do that for us right now you're excited by this.
Well excited.
The prices are lower as sending I think rational investors should be -- whenever there's -- Big sell off people panic to do a couple of bad economic numbers in a row.
We find.
Good companies that we liked.
You know as just as much a few months ago trading substantially cheaper so are on sale yeah exactly and is it's a rational reflex it's only.
Irrational in the stock market when something that you might wanna buy in -- stores cheaper might feel excited about it in the market people get scared it doesn't make sense that is just the nature of investors so it -- Talk about which stocks you think are cheap right now -- good investments first health management association.
Tell us why you like them -- Health Management Associates is a great hospital chain they manage hospital's own and manage hospitals and rural parts of the country.
The companies had agreed twenty year track record of growing primarily through acquisitions that by hospitals -- They bring them up to their standard of profitability and they do it.
All while generating a lot of free cash flow in the process so I think this is a stock at six and change is probably worth twelve.
Twelve will be about seven times the 950 million to be done they should generate in about.
Eleven or twelve times to 250 million dollars worth of free cash -- the company should generate.
-- I wanna go back to you in the better than the -- because it is I'm sure.
Very different lively there that's that's understating it.
I'm looking at the Dow thirty all thirty names in the Dow Jones industrials down at where did you see flows if any today and what were they buying.
-- -- look at it perhaps again high dividend yields -- utilities were probably the best performer.
You know but you got a market that's down 10% off the -- we're down 4% yes and peace and also -- -- all the 1284 to 200 day moving average.
Technicians take good noted that especially on -- Friday so very little been spared but in the defensive stocks -- I think -- if you wanna have -- any positive so that probably is where you with us.
So people -- in essence saying I don't mind taking a hit on the stock at least I'm getting a dividend of maybe if I picked the right stock 3456%.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 43% of the return came from dividends over the past thirty years so there is some to be -- for dividend especially with ten years at one point.
4%.
Alright Chris I wanna go back -- -- talk about the overall market because.
Some people suggest that what we could be going in if we see the Euro totally sell off if we see the banks in Europe.
Totally.
That we might -- credit crisis that equals or is perhaps even worse that what we had here.
In 20082000.
-- -- and that that's who we're talking recession then are we not.
Sure credit crunch of that magnitude.
Could easily push us over the -- into recession.
I don't think it's something that's going to create the same kind of -- Catastrophic.
Decline in stock prices that we saw no -- 09 because we're so much in better shape now to deals that corporations have more cash banks in America.
A much better capitalized were back then.
And even the individual consumers.
-- to a point now where.
Debt to income is at a level which is really sustainable so I don't think -- We do have a a major creditor that in Europe and major chaotic kind of coming apart of the of the eurozone.
Necessarily have to lead to the kind of catastrophic decline we saw here you know we've known on Christmas woman with a common voice in -- to have that.
