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Thesis Fund Management CEO Stephen Roseman on under-the-radar stocks to consider for your portfolio.
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Well Stefan rose -- -- fund management CEO in pieces flexible fund manager back some unusual in the US.
Equity picks diamonds in the rough -- in European edition earlier.
Announced US -- time real -- care.
-- shows you've often heard me say on the show.
It's often warmest inside the heard.
But the best opportunity to make money is to go against the grain look for things that are trading at very very low multiples cash flow or significant discounts.
To book value so in the case of US stocks we like games like AIG.
We talked earlier this company amp and -- -- -- absolutely the insurance company.
Our Best Buy which has been a controversial name it's been the -- a lot recently cut let me -- or controversial name but OPEC well they had -- there was a point in time where AIG was more controversial and Best Buy I think today Best Buy as little more controversial -- -- -- And very current in the press in light of the the battle being fought in the board room between the founder and former chairman.
And the current management team.
-- -- -- -- regularly what do you think about the new that is CEO Best -- I mean it just isn't coming it came from Carlson hotel -- commander -- Best -- being.
You know concerned about that.
Well.
Well I think the it's too early for us to make any sort of -- conclusion having sort of conclusion with respect to the new CEO.
-- the one thing that is clear is given the comp package an incentive structure put in place.
The one.
Person that one is in fact the new CEO.
Where shareholders.
Are losers in light of the comp package for what might prove to be a very short -- Okay and then not something you brought up when your hair back in April I -- kind of bring mr.
viewers' attention mrs.
Iridium communications -- GM as the -- Aaron back when you picked it.
The stocks is that is actually dropped about 13%.
I'm curious if you still like the same despite the fact that it's down 13% since April.
Sure if there's a business that we like we can like businesses as they get cheaper right which is up.
Often again counter intuitive to how investors typically invest they like their investments to go straight up.
The reality is as an investor or.
We -- four prefer once we identify a business that has the types of characteristics that we like.
We like to be able to -- -- less expensive place so.
While nobody likes to see their investments decline and -- -- over the short term the reality is if you're still fond of the business and if you still find the business remember to be attractive.
It gives one an opportunity to buy more stock.
Okay okay before I let you go you got a very interesting -- and -- -- bring this up this is liberty ventures just began trading on August 10 grand meadow.
Why do you like this one it's it's there's net charge -- are basically -- so so why this name.
Absolutely so one of the great places to make money is spin off special situations.
Post bankruptcy equities re orders etc.
that's an area that we specialize in so in the case of liberty ventures to recent spin off from Liberty Interactive.
As we see if there's about seventy dollars -- asset value there.
And the stock's trading at a significant value to that -- -- oftentimes during a spin the existing shareholders of the company from which it came.
Aren't interested in this spin for one reason or another either doesn't at the market cap parameters.
They don't understand the business they haven't taken the time to understand the business and as a consequence.
You end up with selling pressure she can see that from the time the -- -- A few days later the stock declined precipitously in value only over the last week or so and again -- -- very brief period of time -- rebound.
Fair amount.
What's happening now -- you're gonna start to see you sponsorship from Wall Street investment banks as they start to do the analysis in the research on why it's so attractive again.
Seventy dollars -- asset value trading at a significant discount to that.
That adds it's it's actually I mean it's near the high which was 52 in change cents not far from that right now.
-- -- -- point does upon her husband basis fund -- CEO and pieces flexible fund managers to bond thank you can see you again gonna see.
