Mario Gabelli was on CNBC today sharing his opinion on the economy, stock market, and particular names he currently likes.
He makes a case for small cap stocks being an interesting target for M&A interest from larger companies trying to counteract anemic topline growth. He reiterates what Leon Cooperman has said in that bonds look overvalued and are not a space he wants to spend time in given the inherent risks. He thinks the US is strong but advises that it would be foolish to ignore the bargains around the world. The three big areas he sees opportunities now are: housing, fracking, and commercial aviation. In this video he talks about a couple companies that he views as good acquisition targets. Navistar is a company he thinks is a good takeover target. Hillshire Brands is another company he thinks will get taken over due to their strong portfolio of consumer food brands and he thinks it could be worth in the $40 - $50 range vs a price today of approx. $33.50. He thinks they are continuing to work on a turnaround and should be able to clean up the operations and get acquired in the next 24 months. Finally he thinks that Post is a good acquisition target post its spin-off. He really likes the CEO at Post and thinks that with only a $1.5B market cap they are ripe for the taking.
In this video he talks about his favorite bank stocks. He really likes Legg Mason and Cohen & Steers.
In the final video Mario Gabelli talks about his favorite current pick which is Davide Campari-Milano. He thinks its a great company but because they are majority family owned will not be a takeout candidate anytime soon.