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Evermore Global Advisors CEO David Marcus argues now is the time to get into European markets.
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Shares are fleeing Europe as protests record high unemployment and S&P downgrades are plaguing all of those economies.
We've got a money manager who says now is the time to buy 'cause if you get in and wait -- it's time to get -- you'll be too late he's calling Europe a once in A generation opportunity to find out why joining us David Markus ever more global advisors.
CEO -- which -- Europe is now a bunch of disparate nations some doing super well.
And then the club med states of course Spain and Italy is as people talk about those in Portugal not not as much when you say get -- to Europe where.
Well you know you're actually right.
It's it's not about buying Europe itself it's about buying companies.
And so it's companies like.
Vivendi and France companies where they're going through rapid transformations with a have a whole bunch of disparate businesses.
Really global business is that happened to be based in Europe.
They're taking advantage of this crisis like never before the restructuring they're selling assets -- refocusing the pushing back on their unions.
There's a company in Spain -- it's it's a big media conglomerate.
It's going through a remarkable transformation.
But you know let me push back on -- a little bit because somebody would say that the kind of changes they're making.
To satisfy the economist the IMF for not necessarily good changes for growth and -- they're raising taxes.
There increasing regulations.
That does not necessarily promote.
Economic growth well.
Again we're not that we're not.
Saying you buy everything you have to be very selective and pick those companies that will thrive -- close look -- just focus focus on that one and that you -- from Spain.
From Victoria day inform -- -- its -- Carlos Slim likes this company.
They are into pay TV -- -- and education services textbooks and things.
Which are still using in a lot of places in the world including Latin America this -- if Carlos Slim is investing maybe he knows she you know what governments are buying them.
Well he's not the richest man in the world because he doesn't know what he's done -- -- noses stuff he finds things on the cheap.
That's what we're looking to do as well this is a PRI ES dot B to B shares that's right which would have preferred you're getting a huge dividend -- getting paid to wait.
The reality is this company is going through a lot of of frustration because they have a very stretched balance sheet.
But they're also -- structuring the pushing back on their unions there.
Streamlining the business and and actually the crisis allows them to do it because the government's realized if we don't help our companies.
Then more people will be out of a job and so they're they're changing the rules to allow them to lay off with more modest costs.
David you also like the German industrial giant Siemens okay.
As we look at that chart I'm really interested to know how you identify.
-- a very touch and go situation in many of these countries a stock that should be bought.
It all starts with the valuation we start with -- what we think are low multiples of cash well.
Once we see that we then look for catalysts for us everything's about -- what's gonna make it go up.
Is there a restructuring as our new management other assets and so -- refocusing the business in some way.
What do we what do we see going on that will release value Siemens has is one of the best examples in Europe.
I don't own it today I'm waiting for to come down another flatness of the shall we were sending -- got sucked so what you see that say -- where there absolutely because it's just the kind of company.
That is actually taking advantage of it but what they don't do is they don't make big announcements about -- they just kind of get it done.
Because the headlines don't.
Sell well and we're seeing this.
The other kinds of things that -- -- companies that are based in Europe and allow you to sneak into emerging markets where maybe all of their businesses in Africa for example.
We gotta go David I just have -- giver feel like you're trying to sell ice to an eskimo I mean is it a tough sell right now selling Europe -- this is tough sell but you know something history has proven over and over and over you have to buying them when they hate them and they really hate him today.
David -- good to see it thank thank you coming in again -- -- share that wealth half.
