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A down day like today and you've got the Dow basically Don Imus -- -- -- gets a good time to root for the underdogs.
My next guest has the best place to look for returns.
Is in stocks -- haven't participated in the run up that we have had.
Will -- -- -- -- -- plus value funds portfolio manager is here and William -- actually -- like a day like today with a 200 point drop because it gives you that chance to pick.
The lower names what do you look at them.
Well I think it that's reading this consolidation is a sign of a of a healthy market it's a volatile world out there and there were long term value buyers out you're looking for bargains in the marketplace and right now the backdrop the consumers pretty pretty you know I'm optimistic -- consumer sentiment that's breaking out so overlooked.
Course of this year -- -- a handful names in the consumer discretionary space and one of the names that were very excited about the long term is -- Royal Caribbean it's.
Certainly something that's been in the headline here most recently with the fire one other vessels can hurt -- EPS by about ten cents we got interest in the name though last year when the competitor.
Had a ship run aground and in Europe and you know that was the headline risk that was associated with the name that presented the opportunity.
And we got to think longer term what's the perception around cruising and be.
Three years from now we look at the fundamentals for the space capacities -- very ration -- three -- 4% pricing is nowhere near.
-- was in 2007.
And the consumers feeling better leisure activity is picking up and we think broker -- long term by for our shareholders.
Still on the daylight today without a lot of concern about the economy -- -- -- -- -- a concern about the -- -- themselves whether it's consumer confidence -- consumer sentiment.
So -- a day like today.
Do you would you get all of the concern especially to talk about a world -- in.
On a day -- eighty.
You know it's that I think that was one of the reasons for the sell off perhaps it was the European.
PMI for their service related account of the disappoint if I'm not mistaken.
Look it's it's it's one day we've got a very strong year -- performance we would not be surprised to see this consolidation continue for a little bit here.
Perhaps -- market sets back 5% I'm not sure but.
The fundamentals for the broader economy tell us look pretty strong if you peel back the onion on.
You know Q bit Q1 GDP -- the headline number was two and after 2.4 percent was revised down.
But private sector real GDP came in at 4% so the real economy in our view is pretty resilient look at things like auto production you look at things like housing prices.
Consumer senate as we mentioned this is higher we think the backdrop is pretty positive for the private economy today.
-- and automobiles I -- throw that in that's in the mix or what you're discussing their -- you're looking at Harmon and this is the audio video company that evaded the dashboards for automobiles.
And you're saying that this is an -- department underperforming name.
It's up -- more than 1% year to date that's that's pretty good in my book why is that -- under performer.
Well we hear today it will work contrary is resilient and others say -- -- disappointed earlier this year and again headline -- concerns about.
You're -- European auto sales -- truck.
Here recently those numbers have been less bad that's what's good for the Nancy has been a decent performer for us we're -- thinking longer term.
We're always looking for catalysts for recognition on our stocks at Harman we think has a tremendous one -- always the social generally been associate with higher end luxury vehicles like BMWs for instance and there they're moving downstream a bit to some mid level or economy class vehicles with their.
Infotainment systems is a tremendous opportunity there some -- 40% of cars have an infotainment system today -- to go to 50% the next five years.
-- -- leader and that's recent tremendous top line and margin improvement to their story the backlog is at sixty billion so they have a long long runway here.
All right and also wanted to but the house has barely -- -- let -- go Hospira Adrian this if this goes you know here's the what health care which you've said in the past and I was looking at the balance of your body your kind of -- health care and this one new life why.
Right yeah we've been selling out -- a number device seems have been very strong first year to date but.
Hospira falls within that pharmaceutical bucket a bit of a -- they got a device -- as well.
What we like about -- number one leader generic specialty pharmaceuticals 30% plus market share tremendous pathway for growth.
In internationally just 20% of their sales are international we think they're probably in the sixth or seventh.
-- of the remediation efforts with the FDA we know Michael -- the CEO there is heavily involved with those efforts they spent a lot of money on it so.
It were recoup would -- to the contrary here we realize that -- reflect this year perhaps next but the tremendous growth opportunity for this company that's a leader in space.
-- do you ever I noted that your fund -- the heartland -- but do you ever see it's time where you be willing or maybe in another fun that you could launch a week.
Look overseas for some overseas gains.
I we we've done that we're very proud of that this this October are hurt my -- international -- we celebrated its three year anniversary it's.
A small cap focus -- with an emphasis on dividend paying names there's tremendous opportunities internationally.
A good -- again all right well you know you yeah I love the heartland is always good to invest in this country but profits are everywhere lately.
Not nasty -- -- Hartley -- CEOs like value funds for full image that they can't.
Thank you I think he's.
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