Looking at Long-Term Global Trends and Catalysts at the Corporate Level Key to This Money Manager's Investment Philosophy: An Exclusive Interview with Stuart Shikiar of Shikiar Asset Management

Wall Street Transcript

67 WALL STREET, New York - September 17, 2013 - The Wall Street Transcript has just published its Multicap Value 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 Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Bottom-Up Stock Selection - Large-Cap, Deep-Value - Value Oriented Strategy - Value Investing - Large Cap Investing

Companies include: Vodafone Group plc (VOD), Verizon Communications Inc. (VZ), Apple Inc. (AAPL), Honeywell International Inc. (HON), Anadarko Petroleum Corp. (APC), Walgreen Co. (WAG), CVS Caremark Corporation (CVS), AmerisourceBergen Corporation (ABC), Macy's, Inc. (M), Linn Energy, LLC (LINE), Teva Pharmaceutical Industries (TEVA) and many more.

In the following excerpt from the Multicap Value Report, an experienced portfolio manager discusses his stock picking methodology:

TWST: You look at long-term global trends and you also look at catalysts at the corporate level, is that accurate?

Mr. Shikiar: Yes, being not confined to any one industry or one specialty, we do have the opportunity of determining where we want to allocate our assets. Clearly there are important global trends that we monitor, and they would include developments that impact the consumer, who generates about 70% of the GDP in the United States.

Energy, telecommunications, technology, banking and finance, longer-term growth of precious resources to develop them, global population growth, are constantly discussed by our investment team. We do look at these and other macro themes, and then attempt to integrate securities that fit.

TWST: You also look at the corporate level. How do the macro and the corporate levels work together?

Mr. Shikiar: I'll give you an example of one of our larger holdings that actually was in the news just a day or two ago, and that is Vodafone (VOD). Vodafone is a global telecommunications company. It has operations in many parts of the world. It has an asset base that is exceptionally valuable.

Vodafone is based in London, and for the last 15 years it has had a 45% interest in Verizon Wireless (VZ), which is the real cash cow of Verizon, and that asset is extremely valuable - so much so that Verizon decided to buy it from Vodafone. At closing, early next year they will pay Vodafone $130 billion in cash and Verizon stock.

The catalyst there was that we own a company in two businesses we like, technology and telecommunications. Its valuation when we purchased it was very reasonable. Vodafone pays a 5% cash dividend, which it still will post deal, and we were very happy...

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.

View Comments (0)