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James Lebenthal, Lebenthal Asset Management president of Equity Asset Management, on where he is putting his money in today’s markets.
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-- to work James Leventhal president equity asset management late -- -- asset management joins me now.
Are you are now bullish and I have to say here you put your money to work shares of apple -- did this is a long running joke for some viewers have.
That in Canada -- united discussions plus years I've given you such a hard time about missing the bottom apple he don't end up we're well I.
Right at this 500 level a little bit above and a little bit yesterday when it was below.
So whatever so I don't yet you say okay time to get up in the stock average price of around 503 which is where it is today and look you're right you're right to point out as everybody in this business business should know.
You're gonna make mistakes and missing the opportunity to buy apple -- few years ago slightly over 300 was a mistake.
The mistake was basically thinking it was a growth stock when really it is a value stock and after coming down from 700 to 500 now.
It trades at about ten times earnings it's got a peg ratio or price earnings to growth ratio of about point seven I mean these are these are deep value numbers 2% dividend yield.
And I don't think that this is going the way that rim went which is what I think the bear case has to be if you're gonna sell it at 500 dollars so.
I think this is a gift and I'm -- willing to admit the mistake of a few years ago and and god bless the market.
All right well I do wanna ask you about a couple more things you know obviously the overall economy is now in focus of fiscal looked negotiations you and many other investors -- husband you're bearish for most of 2000 while.
Yeah now -- looking at consumer names like Staples.
And I mean where Staples come from in your -- well before -- get the Staples let me just back up and say the data really supports in my opinion getting bullish now so I was bearish below those who -- 2012 -- -- my -- -- -- I think coming -- -- I don't know I don't know -- I've been bullish for most -- -- I'm -- -- But definitely second half 12012.
Until the economic data whether it was housing weather was consumption even the labour markets and I'm not saying that things are going gangbusters.
But they're going to OK and it really makes us think what would happen if we didn't have to worry about all the drama in Washington DC.
After march something's gonna be resolve on the debt ceiling one way or the other and we're going to be out of drama for a little while I'd like to see how the economy picks up then.
So are you asked about Staples.
Every moment coming to -- -- down 17% of blacks Jerry you are buying in -- -- -- -- exactly.
And the reason is fairly simple it's just been beaten down for a number of valid reasons OK so a labor market that was punk -- for a long time.
The woes in Europe.
But this is a company with a three point 7% dividend yield tied to an improving economy.
Buying back shares we like it James -- adopt thank you very much thank you sure apple jokes at your expense -- that -- So.
