Mario Gabelli

Mario Gabelli Favorite Stocks: Full CNBC Interview [VIDEO]

Stock market superstar Mario Gabelli explains why he is taking a look at Davide Campari-Milano in a CNBC interview today. We earlier posted one segment from the interview, which can be found here. The entire (rest of the) interview can be found below.

Mario Gabelli Favorite Stocks: Full CNBC Interview video and excerpts

Mario Gabelli Favorite Stocks: Full CNBC Interview [VIDEO]

Mario Gabelli video excerpts and transcript CNBC July 9th 2013

Gabelli’s Favorite Bank Stocks

Mario Gabelli, Gabelli Funds CEO, provides his play on the banking sector, including trades Legg Mason, PNC and M&T Bank.

Gabelli’s Three Takeover Targets

Short-term takeover targets have some “potholes,” says Mario Gabelli of the Gabelli Funds, providing his play on Hillshire Farm, Post and Navistar. And a technical look at what the charts are indicating about the markets, with Stephen Suttmeier, Bank of America.

Transcript:

welcome back. get you caught up quickly what the market’s doing. pretty picture on wall street today. s & p 500 right now at the highs of the day. we’ve taken out 1650. 1652 is where we currently sit. only about 100 points away on the dow of its record closing high as well this. rally continues to march forward. tranny’s up 2.5%. very notable. transport’s important. 1650 a key level investors are looking at. one of your key is betting on companies before they become takeover targets. what kind of names are we talk about here. i know one you like, carl icahn is in that being navastar. i started following them when they were international harvester. navastar it tracks the man from s.a. trucks. ties itself to gdp and they go through cycles. they made a mistake and we did not figure out they did not have ®a backup plan early enough where they came in with an engine that didn’t work on the epa rules. stock’s $29. 80 million shares. is a poison pill t expires. carl is on the board. i’m buying that stock. a wild card here is sergio marcioni put together fiat industrial. they’ll have a wonderful industrial base. power train. and scott, i think that at some point after they figure out what to do with chrysler they may want to consolidate that. if they don’t, navastar will still come in with 15 billion of revenues in a couple of years and $1 billion ebitda. i think the stock with the market cap of $2.5 billion is worth putting a few bets down.now short term you’ve got some potholes. hillshire brands. about five, seven years ago, brenda barnes was running sarah lee. buying back stock. we took a look at it. we liked single serve company. they have what they call now d.e. master blend that’s being taken over. hillshire was a subset of that. so hot dogs, sausages,my deen in the morning. hillshire meats. i thought smith food would back into owning this. i don’t know if they something else interested in, don’t know if the deal will go through. but i think hillshire short term an a little issue with regards to pork, but i’m buying some right here at 33. three to five years out either they turn it around an they are turning it around, doing a great job in marketing and spend and great brand promotions. the other one that was also a spinoff when rollcorp was taken over by canagra. that was a deal where the buyer synergistically it helped lift the stock. they spun off a company called post. cereal company around in 1890. i don’t have to worry about when the next netflix will be here. i think most of us know of post. probably have some of the boxes in our cupboard. i also like to buy a company that is a gifted ceo. now he’s the ceo at post. he’s done a couple of deals and he’s getting some wampum in the sense of convertible preferred. i bet he’s going to put together a very interesting company. small cap stock. 35 million shares. 1.5 billion. that’s where you want to forage. and it’s thick ice when you’re walking on a high. air pock nets this company. navastar i’ll take the other side. good. i need help. if you really want help, simon will take the other side. i’m going to take it for now. cummins engine. they’re reselling them. they’ve lost a part of their franchise. damaged themselves with the network. end buyer who want more reliable trucks. icahn if he does win dell he’s balance sheet’s been tapped so he’s got to go out and take another one over. i don’t see that happening with icahn. so why so optimistic on navastar? i started following cyclical companies. you buy them when their earnings are peaking you pay depressed multiples. when earnings are depressed you pay peak multiples. so what happens in the cycle? you’re right, and that is that when i started following the truck companies, even pack car they would assemble the truck from cummins because the trucker specifies the engine. the dealer’s not uncomfortable with this. they’ve got a credibility. but you go through cycles where this happens to every large company. at some point in time. i think the new ceo is doing a better job. putting in 13 liter engine’s working. the one that they have now is with cummins. over the next 3 to 5 years when the cycle turns i think they’ll get their share of the heavy duty truck market. the bus market will come back when municipals start buying again. is there an air pocket i’m missing with regards to the balance sheet short term where they may have financial issue. carl icahn, why does he wa to care about trucking? i first met carl when i was buying acf industries and he took over the company. i met him prior to that. ways following acf because they made carburetors and they made rail cars and he still owns it. we’ve been following the market. trains to computers. we’ve got a pretty good market we’ve been following as you know today. dow is less than about 100 points or so away from its record close. want to know what the technicals are telling us right now. there’s the dow, 15, 305. let’s check the charts with steve suttmyer bank of america merrill lynch. 1650, getting above that the significance is what? well, there’s a level of resistance right around 1650 to 1665 on the s & p 500. and if you look at the improvement, the breadth indicators have shown the improvement in our volume intensity model proprietary volume indicator supports the case for the s & p to move beyond that resist tan, trend back up towards the may highs near 1674 to 1687. and perhaps even move up into the 1700 handle once again. in terms of support, it appears the s & p is building some support right around 1611 to 1597. the market pattern is looking quite constructive here based on the price action. also based on the firmness of market breadth indicators. steve, josh brown. you do a great job. the note you put out you talk about how this setup looks very similar to the lows in june 2012 as well as november 2012 that kind of launched this last leg of the rally. and i think it has something to do with the depressed vics. can you get into that a little bit? yeah, the vics got depressed similar to those levels. we also study the market breadth indicators there, momentum indicators there. if you get some of the longer term breadth studies like the 26 week advanced decline diffusion index you got to the low levels associated with the november and june lows, that was the indicator we were focusing on, not so much the vics. but they got up to lower levels in the market. that pairdivergence. as long as we can hold around 1600 on any pullbacks here i think we’re position today move higher. thetinued i guess break out of the russell and the small caps? yes, the right market, the right sectors are leading. you’ve got discretionary leading here. that remains a strong sector since the march ’09 lows. breakout for the banks on the bkx in particular and both broke out to 3-year highs. relative breakout versus the s & p 500 is important because that’s a relative up trend for small caps that goes back to the late 1990s. that’s important for market breadth. here you have an index of 2,000 stocks leading an index of 500 stocks. that is a positive for breadth that suggests the market is not being driven by select megacap names but by a broad-based group of stocks. that’s important. steve, thanks so much. good to talk to you as always.

3 Potential Takeover Targets: Gabelli

Three companies look increasingly attractive for takeover bids, Gabelli Funds CEO Mario Gabelli says.

Transcript:

welcome back. get you caught up quickly what the market’s doing. pretty picture on wall street today. s & p 500 right now at the highs of the day. we’ve taken out 1650. 1652 is where we currently sit. only about 100 points away on the dow of its record closing high as well this. rally continues to march forward. tranny’s up 2.5%. very notable. transport’s important. 1650 a key level investors are looking at. one of your key is betting on companies before they become takeover targets. what kind of names are we talk about here. i know one you like, carl icahn is in that being navastar. i started following them when they were international harvester. navastar it tracks the man from s.a. trucks. ties itself to gdp and they go through cycles. they made a mistake and we did not figure out they did not have ®a backup plan early enough where they came in with an engine that didn’t work on the epa rules. stock’s $29. 80 million shares. is a poison pill t expires. carl is on the board. i’m buying that stock. a wild card here is sergio marcioni put together fiat industrial. they’ll have a wonderful industrial base. power train. and scott, i think that at some point after they figure out what to do with chrysler they may want to consolidate that. if they don’t, navastar will still come in with 15 billion of revenues in a couple of years and $1 billion ebitda. i think the stock with the market cap of $2.5 billion is worth putting a few bets down.now short term you’ve got some potholes. hillshire brands. about five, seven years ago, brenda barnes was running sarah lee. buying back stock. we took a look at it. we liked single serve company. they have what they call now d.e. master blend that’s being taken over. hillshire was a subset of that. so hot dogs, sausages,my deen in the morning. hillshire meats. i thought smith food would back into owning this. i don’t know if they something else interested in, don’t know if the deal will go through. but i think hillshire short term an a little issue with regards to pork, but i’m buying some right here at 33. three to five years out either they turn it around an they are turning it around, doing a great job in marketing and spend and great brand promotions. the other one that was also a spinoff when rollcorp was taken over by canagra. that was a deal where the buyer synergistically it helped lift the stock. they spun off a company called post. cereal company around in 1890. i don’t have to worry about when the next netflix will be here. i think most of us know of post. probably have some of the boxes in our cupboard. i also like to buy a company that is a gifted ceo. now he’s the ceo at post. he’s done a couple of deals and he’s getting some wampum in the sense of convertible preferred. i bet he’s going to put together a very interesting company. small cap stock. 35 million shares. 1.5 billion. that’s where you want to forage.

Gabelli’s Trade on Media Stocks

The FMHR crew reveals their top trades on Barnes & Noble, Tesla and Dell. And Gabelli Funds CEO Mario Gabelli, explains why he owns News Corp., Viacom, and shares his views on Netflix. Also Herb Greenberg has the update on Intuitive Surgical’s nearly 20-percent slide today.

Transcript:

all right. welcome back to the halftime show. top three trades now. first up barnes & noble. the book seller says ceo william lynch resigned effective immediately. a successor not yet been named. josh brown what do you do with this one? the stock is getting boost on the news. this is going to trade based on headlines at this point. trade based on speculation of somebody else coming in or maybe len riggio making another play for the company. we really have no way to guess. one thing i would say the billion market cap. they’re valuing this thing at almost nothing. in that standpoint if i’m an investor i’d probably be interested in buying into it. but you have to understand that there could be negative preannouncements. fundamentals are not great right now. the nook is an abject failure. and the guy leaving was supposed to be their digital sharp shooter, their expert on how this whole thing was going to work online. so it’s a very tough stock to hold. but it’s dirt cheap. and a lot of things could happen here. so it will be exciting but it will be hea driven. do you have a quick thought mario on barnes & noble? we look at it because len riggio has been a mastermind at merchandising. he’s trying to buy back a piece of the company. you want to follow where his money is going. and the nook part the 72% owned by them and balance by microsoft and a couple of others. you can market to market what that’s worth. i don’t have competitive allenge. if we own 10,000 shares and what i run which is $30 billion is probably a large position. how about weiss with tesla? replacing oracle which of course moved down to the nyse. i look at tesla the same way today at the price that it’s at the way i looked at it 80 and 90. not shorting it or getting in the way of the momentum. to me the end market is still very limited. if you take away the government subsidies, the sales sales come down. keep playing with momentum. it’s playing with fire. i’m staying away. it values right now the cars that they’re selling are huge huge profit margins. when their margins for a smaller company are much less than what ford’s getting. if i’m playing auto i’m sticking with ford not going tesla. how does a guy like you look at tesla, momentum stock. people wonder whether it deserves to be trading at such a high price? i was there when john delaurean tried to pitch me. i love innovation and creativity if anything can make you and i have a car the jetsons have, anything that works. dell ackman says it’s going to back icahn. they own less than 1% of the stock. i think you really have to look at iss coming around to michael dell and silver lake side yesterday. ten days away from the vote, i still think you take the money and run on this one. you’ve got the certainty of being out of the pc business which is declining. that’s what i think is going to happen. dell is a relatively new holding. i mentioned 2% turnover in one of our funds. we have about 300% turnover in the arbitrage, abc fund. we own these kinds companies to make a return on risk in quotes arbitrage. in that regard the arb desk is going to vote with icahn. i’m going to tender into the dell pot. you are. for the stock i own, which is only about 4 or 5 million shares. right. but the arb desk owns probably more than that. you overall view on what’s taking place? it’s hold ’em poker. we’re at showdown stage. both sides are all in there’s going to be one winner. well, that’s for sure. all right. one of the areas, mario is known for successfully investing in is the media space. news corps is one of your biggest holdings. media stocks in general have done incredibly well. tell me about news corp. i go back to how i got involved with murdoch, probably in the 80s, when he and herb siegel were having a little love fest over time wanter or something with steve ross and they walked into the parks. and we owned a lot of bhc broadcasters, news corp. bought it. i owned the stock. kept the stock. the new news corp. at $15 million with 600 million shares is a question mark of do you want to be with murdoch when you take the australian play, when you take his other legacy assets, newspaper new york, wall street journal. the post. and the post. but great cash flow and the stock is a bargain. so will rupert do it again? yes. will i be happy with some of the initial deals? maybe. so we own it. we haven’t sold any news corp. we’ve actually bought more as it’s been sold into the marketplace. obviously it’s dramatically underperformed. it’s only traded since last monday, i think, maybe two weeks ago. and fox we owned. we’re looking at it. if it could break down we’d buy a little bit. you don’t own fox right now? no. when we owned news corp. — you got both. we got both. 31 or whatever the fox is. you got $15 which is a fourth of a share. put it together it’s $35. news corp. has done quite well. within that framework we got very lucky. that was a question you asked before. when do you have to hit the guy with the pie? the stock was down at $13. they put chase cary in charge. they didn’t buy into sky which i thought was a bad use of capital. the stock’s gone from up 13, 15 to 34. okay not great. for a guy who is so focused on media, cable companies, what do you think about netflix? why don’t you own a netflix? actually, we did for awhile. and it’s probably a stock that had i been more focused on it i would have probably owned it and would still do it. at $10 billion market cap it’s got an interest play. but we own so much viacom. time warner, cable stocks. so we’re not underexposed in the area. to the degree that i like to buy what is a discount — viacom when they split off cbs and it’s got to be x years ago down to 485. down to 322 million shares. and they’re keeping debt constant at about $8 billion. ebitda is growing. stock will be worth $130 in three years. i like viacom. i’m not looking to get a bigger kiss than the other shareholders. if he does we’ll have a love fest. can we go back to fox for a minute in terms of disney. fox is launching fox sports on many many networks. espn has been a great driver of prort profitability for the networks and disney overall. do you think it’s a winner loser type of situation? because it’s an audience that’s out there. if fox takes the share from espn that hurts disney. there could be a notion that sports are tribal and they’re also very passionate about soccer, which the rest of the world calls it football. so if i can get the rights to all of that and then i compete against the american football, i’m not sure it’s a zero sum game. in addition to that, it could be a zero sum game unless you enlarge the audience to include more nonmales, women, and within that framework you watch just to use an analogy, steve, it’s bourbon. they came out with a product called honey to cross over to bring in a female drinker and it’s working. bourbon is hot! so with regards to fox, i think they’ll have a share. it will take longer. it will be expensive. you’re going to pay for programming rights. as a content owner i think it’s terrific. talk about shares of intuitive surgical for a moment taking a beating after the company forecasted lower than expected second quarter sales. it’s a controversial stock. and that’s why herb greenberg’s been all over it since the very beginning. herb, so what do you make of this latest development? i woulduess you’re probably not surprised. well actually, i think a lot of people are surprised. the buggish analysts are surprised. what’s most fascinating, some of the bearish analysts are actually surprised because the hit was so big and so unexpected when it came. what you had here when it was so interesting, a company that says our revenue is going to grow at 7%. not bad. for the past eight quarters they’ve been growing an average of 25% each quarter, and before that mostly much higher than that. you suddenly have a reset. what people don’understand is why is that and is it temporary? i think what they’re looking at here is the question of on one hand the company says we’ve got health care spending issues going on right now. hospitals a
re under pressure. these are million and a half dollar plus pieces of machinery they have to buy. on the other hand, you have issues over overmarketing, overuse. is this starting to hit. a bit of controversy out there. is that causing hospitals to say we got to cut back. is that causing patients in the gynecological area and doctors saying we got to cut back. we’re seeing the potential results. i think the trouble here now if you’re long, you don’t have enough shorts in this thing to come in and put a bottom in short term. you only have 5% of the float short which is actually not many for a high-flying name like intuitive surgical. i think the other issue is, right now it’s settled down today on this gap down right at the level that it broke down in 2011. that’s a natural place for the stock to find a little bit of support today. i highly doubt it hold given the fact the analysts were caught like deer in the headlines. the nobody was ready for this as herb mentioned. that’s what i would be concerned with here, this wave of potential downplay. let’s look at the other markets, the consolidation in managed care, consolidation in hospitals. they’ve gotten smart. now there are price pressures. they’re not willing to pay anymore. the hmos aren’t willing to reimburse anymore. the power has shifted from the manufacturer and what some are saying is a mature market. i have to just say, this meaningful impact, goldman had a comment on this today. meaningful impact on hospital spending is a bigger broader story. it is. but i’ve got to say something. you guys are traders. i get the tweets from other people who say hey the stock’s come down. it’s done this before.

Gabelli’s 3 Hot Investing Trends

Mario Gabelli, Gabelli Funds chairman & CEO, explains why “the bargains” now are in U.S. stocks but will move to emerging markets in the future. Also, Gabelli provides his top plays in housing, fracking and commercial aviation.

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