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Thesis Fund Management CEO Stephen Roseman on stocks that offer great growth opportunities for investors.
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As we'll stay on and was sure did not as an investment idea as many of you have been diving into fixed income investments but my next guest says there are still.
Oh great opportunities.
And equities and not the places that you would expects to bond rose -- thesis fund management CEO portfolio manager.
You're Fox Business because -- his got his.
Quote diamonds in the rough that's what you're calling it but you say that diamonds in the rough can be certain equities that we may not have thought haven't been -- That's actually right as people continue to grasp for the life raft of fixed income.
One of the things being overlooked is the fact that they're still many many cheap equities.
-- often times earlier strategists talk but the move the market has made to we don't invest in the market we invest in specific situations.
While one year picks as a Western European jury company and it actually been on the -- talked about it before and that's pandora.
Interesting story and -- -- Western Europe many of our American viewers would think I'm I'm gonna stick clear of anything I Europe that you say now got.
Yeah that's actually right so for example pandora was a hot IPO few years ago -- last year during the beginning of the European debacle yet again in late summer in August.
The company had some bad news with the -- earnings this stock was not taken to the woodshed by investors who are -- ultimately traded down to a very low single digit multiple of earnings -- incredible value.
It's a real business 101000 stores globally billion dollars of revenue and the fact of the matter is it was being dumped mostly because of the exposure to Europe and not so much because of the merits of the business.
And I should look here's your diamonds in the rough right now -- as part of the shower actually the European -- And also and again that they -- listen to you back in April up 20% on pandora again the join a fairly specific that they know that.
Fiat though obviously Fiat is another name carmaker that you say is a good opportunity for us why.
What -- global carmakers and -- position today if you look at the domestic fleet.
The average age of vehicles on the road the United States is the oldest it's ever been.
Wouldn't and that has important ramifications for the car industry which as we all know.
Has undergone its fair share of troubles over the last few years and so all of the carmakers are gonna benefit from this -- of the fleet.
And the fact that the credit markets -- largely -- themselves and the car industry is coming back.
And it's as robust as it's been largely because of the necessary replacement cycle that we're not now -- entering into.
The end it's a nice to other data smaller cars that means fuel efficiency that seems to be still a big selling point or more more excellent when as we -- gasoline prices go up also there's another dozen American name but you're saying they've got some European issues.
That's Abercrombie and that -- to say I was surprised that you picked this one today because that stock has just been.
Really -- -- there's no other word for the analyst community here in New York you say the Europe's side of the story is what was she really looking for why.
Well absolutely it's not a -- the news pertaining to a particular security it's about whether or not the news has been discounted into the price of the security and that's -- investors often get wrong it's important to understand whether or not its problems in Europe.
Or accurately reflected in the valuations today and we believe it is.
OKO -- an element to that meant to ask -- -- the top of the segment overall again you know you talk about fixed income vs equities.
But a lot of our viewers have been looking for alternative investments because frankly they don't trust that the stock market anyway that that it -- -- average retail investor cannot participate.
Because of institutional trading what is it up person has that concern.
Well look.
The definition of risk is that more things can happen and will happen.
That is the very definition of risk.
What things can happen it will -- OPEC.
That's why we wanna go long short product.
Because we don't predict the future when the business predicting future we're in the business of and evaluating businesses and valuing their securities.
All right we're gonna have some other ideas for you coming up all of the later on in the show I wish I could predict the future.
I -- lottery ticket out -- I'd be buying -- somebody all right let's have a lot of -- it's a -- they -- just a little --
