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Gabelli Asset Management’s Mario Gabelli on why global population growth means investors should consider investing in water, alcohol and soda.
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Let's during gut is saying have you got drink -- we follow it or buy it.
Yeah well we've we've had -- series of areas that we've identified for a ten year twenty year time -- health and wellness for example.
Another one is that as the consumers from China and India and digital global marketplace remember was only November of 19189.
When the Berlin Wall came down and we started thinking this way.
And you have a significant population three billion and obviously.
Water.
-- beer wine.
It to the degree that you have that -- a bunch of companies so we've done well carving out niches like.
Mervyn so if you drink it we follow it to good cash generators of the good businesses and so on.
Beam and Brown-Forman are well those are examples of and they've been discounted you know kind of -- -- is the one child policy obviously companies like mead Johnson and do extremely well they before baby formulas and for -- I drink that every day.
Yeah I know that maybe makes it little little little a little bit haven't inactive travellers and opening up.
-- happy event but you know financial engineering companies deciding to spin off.
Okay Irene Rosenfeld -- Cadbury.
Yeah then decides that sweeten its sour and -- the are good guys snack food so she's splitting up the company mom believes if I pronounce it right up is the new spin off their companies.
That a going through this PepsiCo and then are some that don't treat their shareholders fairly case new Holland.
How is surge of march you only -- Fiat industrial gonna.
-- that in how is for example locked tell us what that piece of bop.
-- for a lot.
And they doing some -- to extract the -- have to watch that we have the is that corporate governance gilts.
From a deal point of view what companies -- to be taken over well that's the question what names you -- out which names are ripe for a takeover idiots well today for example in the health -- area -- had a transaction Par Pharmaceutical there was a group that had already made an investment and -- someone else T -- private equity firm comes to the table and says I like to own it.
And you're gonna see more -- health -- area our analysts I don't know me of this I don't think there's a spare and we own a little bit maybe I don't know a lot of little things little things a little bit a lot of things.
And the company's for example US cellular.
-- Telephone & Data Systems has not done a good thing to their shareholders that was reported that they had a hundred dollar bid for the whole company they didn't disclose it is still kind of stonewalling it.
But I think they're finally getting to the point where they'll have to surface the values.
And you know companies like Fisher Broadcasting.
They sold some assets is sitting on a significant amount of cash so every day.
Companies that -- going through this process session of financial engineering so.
Well he said if you can drink -- how about -- watch it well that -- I have -- that's that's another slogan it was developed by might that our digital team Chris Marie Angie Brad Harris and his team.
Larry -- -- they talk about the notion of where.
You wanna watch it when do you wanna watch it -- the consumer what they want when they wanna -- whatever form of doing that alone because like that News Corp.
spent off story well that was -- part I mean you know it's something that with.
I hate to say if -- about Rupert.
In my war concerned about doing it because somebody would say you -- following.
Some the -- so what is going on CBS and Viacom is it more because of some people think -- that I would have to do it I had an irritant hacking scandal notwithstanding that my own sense.
Is it makes sense.
And that is that you gonna have a company that's pure entertainment and another one that is going to be on newspapers -- -- proved -- worth the baby to have dollars a share.
-- get two and a half billion shares for about the media -- Ryan well that what we think is worth a lot more and we think -- -- stocks around 21 tree to the news the AA has to have billion shares we think it's probably worth close the thirty dollars.
And good cash flow and I think would Chase Carey allocating cash flow buy back stock that makes a lot of sense that Billy did in Australia was okay not great.
And but that more importantly edited by sky which is -- I didn't like his.
Court lowers the parent of our network one quick word about -- -- Lance.
This is a name that we don't hear often on the show but you have -- in your.
Cerebellum right why you know why because they had hit by you do -- like it's.
I -- I'm a big vandalism.
Spectator and I don't know it's so its -- sourdough pretzel the -- -- so you don't pretzels are fabulous.
And they then had Lance which was right public and Snyder which is private that put them together in a marriage.
The 65 million shares and a went over the next two or three years if they can execute.
That is a -- AB type business pretzels.
My -- potato chips and others that a -- do quite well.
And then Irene Rosenfeld comes along tough Kraft of Kraft which is splitting up C of the cheese Henis and you've got this -- -- -- and says you know I've done it before we Cadbury.
UN I need to have some chocolate dip -- and just brings up its.
Read -- you want the -- I want to lose a little -- -- -- -- -- scenario Larry -- always a pleasure -- -- -- hot stocks this so much of an exciting time.
Yeah you're gonna -- fall -- in the aisle and I've been through all of this before and I know got a 112 days -- of.
We're counting so my Mario Gabelli gambrel investors -- chairman by the way all of his picks and more of them we didn't talk about her up on the FaceBook dot com slash.
