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Ariel Focus Fund Vice Chairman Charles Bobrinskoy and Intrepid Capital Management President Mark Travis on where investors should look to boost their ...
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Get our market panel we have mark Travis and Charles -- -- -- school like good to see you both general marks first CEO.
Let's let's talk about what happens Google into the market is try to figure out whether -- Going into a sustained.
Really bullish market of course last year was was certainly bullish lot more bullish and bearish.
Or whether or not there's going to be a pullback some point.
You didn't get that impression from what's happening -- after hours did you that there'll be any kind of pull back.
Well there I'm convincing -- send a self -- they're gonna sell self scattered car to Elon Musk of Tesla -- America at a off off all kidding aside you know I think you've -- of the -- buy an 85 billion month worth of treasuries suppressing rates was a lot of liquidity.
You know as I like to say the bond markets bound by zero.
And down people are starting to -- equity market somewhat but.
I you know I would I would hesitate from here to analyze the Russell two thousands.
Return here today which is probably at this point 45% so.
I'd be shocked if we don't get a pullback in your somewhere my best -- -- Our friends of Washington will give us an opportunity put money to work it better prices before too long.
-- -- You know yeah you bullish you're bullish in the market right now how long can we sustain this momentum when is the -- that coming.
And also your firm a 100% in equities right now.
Yet nobody can predict when a pullback is gonna comment in -- thank -- be very dangerous to wait for one.
We think that stocks are attractive -- -- two bonds.
Nobody is proven that good at picking the bottom of the market so what we think is gonna drive things we're gonna have very good housing starts that's gonna help without employment.
And just like housing brought us down three years ago we think a better housing market's gonna have an under appreciated positive impact.
By the way what we're looking at on the street put that back -- -- screen if you can and it's IBM the numbers are out.
We are seeing another popped after hours not as big a pop as -- Google but still definitely the plus side and mark.
Charlie by the -- is very -- modest -- -- -- his portfolio is up 6% since the beginning of the year.
A lot of cash is coming back into the market I was I was targeted Charles -- about this earlier in the day he is seeing all this money from from cash from money market accounts.
Coming back into equities from the retail investor.
Does not have to have upon a good positive momentum going into the year.
Well I think rising prices attract more buyers David and -- you know we've had that and certainly there's -- and it's just you know -- just the herd mentality.
Well I mean I think the Fed wants risky assets to appreciate whether that's housing or equity and it and it's get his wish and that in the short run at.
That's copyright there for a quick second Adam Shapiro please give us IBM's latest numbers you have with IBM it's -- -- -- -- both lines here for -- -- per share came in at five dollars and 39 cents the street was expecting.
Five dollars and 25 cents here's -- supported -- with revenue coming -- -- -- nine point three billion history was expected to me nine point 09 remember last quarter revenue fell.
Industry was surprised by what it happened but this time beating the revenue expectation IBM -- -- -- nine.
Point three billion.
Yet you know if you look at IBM's one day reaction to earnings and right now we're having a positive reaction 75%.
Of the time.
That predicts how the S&P 500 -- the broader stock -- stock market does for the five.
Weeks following.
That's amazing -- talk about Alcoa being that Bellwether but I -- and in many ways is still.
Charlie let me -- for a second here what sir take on -- -- second trouble.
We like value -- It's an area that people love to hate names like Dell and Microsoft and IBM.
Got to very cheap levels and -- in Microsoft in particular at the end of the year we thought were extremely cheap.
Hi and give us wonder what's the catalyst that's gonna turn that around -- seeing it would doubt.
By the way -- IBM although stock didn't do that well last year it's been on a great run for the last four or five years IBM was written off for dead.
At the beginning of the decade and it's had a very very nice corporate turnaround.
Rates up 3% by the way mark I'm suspecting that because you think those guys inside -- -- -- -- Mess things up again and that there will be a buying opportunity that you're big in cash right now about what your what your portfolios in cash and where else is it.
Well David I'm -- what I'll call balance fond of small to mid cap equity value sensitive and short duration high yield debt.
You know high yield debts now trade with -- -- 6% handle so that's not cheap.
I -- agree with Charlie and we have going to be involved with Dell Dimension to see if they can take it private is that the price talk -- -- -- of fourteen or fifteen dollars I frankly -- asked -- to -- We valued in the high teens -- other people get to higher number yet so.
They'll -- -- CFO Michael -- with his 15%.
And Mason Hawkins -- southeastern asset -- -- seven.
Vote to approve -- that that this lower price I certainly hope not.
But.
You know I think that people need to remember that prices can go up and down and we try to look for a symmetrical opportunities where.
We can't lose any money from here I think -- frankly is an arbitrage is that the back opportunity.
My I don't think there's much price can climb from this point and I think there -- others like that American Greetings another name we've been involved -- A little frustrating for us where management through -- different share class controls the the takeout price.
We think they may need some extra equity get the deal about it 1750 but.
If you those shares today just as an arbitrage if you can collect the dividend between now and the end of march.
You get it -- -- a decent return just in the next two or three months but.
Again that's not how we generally look at it we're trying to find a a discount to private market value.
And trying to you know hold on until we get to that dire way American Greetings is now is and I have the American Greetings is down 2% today by the way might not be -- dipped to get in on if you believe that.
Guys thank you very much.
Mark Travis I'll start -- I was going appreciate it.
