Deep-Value Investing in Overlooked Securities with Strong Balance Sheets: Expert Portfolio Manager James C. Roumell Discusses His Top Investment Picks, Including Tecumseh Products (TECUA)

Wall Street Transcript

67 WALL STREET, New York - June 4, 2013 - The Wall Street Transcript has just published its Multicap Value Investing Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Investing in Financial Services - Large Cap Investing - Value Investing - High Quality Companies - Bottom-up Investing - All-Cap Growth Investing

Companies include: Tecumseh Products Company (TECUA), Apple Inc. (AAPL), Merck & Co. Inc. (MRK), Berkshire Hathaway Inc. (BRK-A), Dell Inc. (DELL), Transocean Ltd. (RIG), Sears Holdings Corporation (SHLD), J. C. Penney Company, Inc. (JCP), Ultra Petroleum Corp. (UPL) and many more.

In the following excerpt from the Multicap Value Investing Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Please provide a little bit of history of Roumell Asset Management.

Mr. Roumell: I started the business in 1986 as a retail broker in Arlington, Virginia, and opened up one of the first Raymond James offices in the D.C. area in 1992. In the early 1990s, I became deeply enamored with securities analysis and particularly with deep value, and read the material of Marty Whitman, Third Avenue Value, and that became my guiding philosophy.

I was fortunate enough to develop a relationship with Marty and began writing some research in the early to mid-1990s, some of which Marty acted upon in the Third Avenue Value fund in a brokerage relationship.

Then in 1998 I decided to form Roumell Asset Management, and we started out with maybe $15 million at that time that were brokerage assets that became managed assets. We have built from there. We have basically done the same thing for 15 years now, which is to focus on out-of-favor, overlooked and misunderstood securities, principally with strong balance sheets. We use a lot of detective work in our research. Unlike some of our value peers, we do travel, we see customers, people in the company's ecosystem, suppliers.

In the past couple of months, we have been at the refrigeration manufacturers convention in Orlando, solely to talk to customers of our top holding, Tecumseh Products (TECUA). Ted has visited a natural gas field in Utah, that's a principal asset of one of our holdings, Sandstorm Metals & Energy (SND.V).

Within the past couple of months, we have been at a large aftermarket distributor of compressors where Tecumseh sells a lot of its compressors to really get a sense of whether the mix on the front end is changing in terms of who is gaining share. In general, I think it's very, very difficult to add value by looking at securities that are highly followed, if not popular...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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