Famed investor Mario Gabelli thinks three companies are ripe takeover targets. And, one already has Carl Icahn on its board.
Three companies are ripe for the takeover, according to famed investor Mario Gabelli.
The CEO and Chairman of $30 billion Gabelli Asset Management Company Investors (GAMCO) appeared on CNBC’s “Fast Money” yesterday. According to Gabelli, Hilshire Brands, Post, and Navistar are underpriced.
On Hillshire, Gabelli says:
“I think Hillshire – short-term, you’ve got a little issue with regards to pork – I hope the stock drops 10% down to $29, $30 but I’m buying here at $33.”
“Cereal was around in 1890, so I don’t have to guess whether the next Netflix will be here… It’s a small cap stock, 35 million shares of a 40-odd dollar stock. That’s where you want to forage.”
“Navistar is simple. It tracks its demand from Class A trucks, ties itself to GDP, and goes through cycles… I think the stock with a market cap of $2½ billion is worth putting a few bets down.”
What’s more, Navistar has takeover king Carl Icahn on its board of directors.
So, should you drive on with Navistar’s stock or steer clear of it?
We ask CNBC contributor Steve Cortes, Founder of Veracruz TJM to look at Navistar’s fundamentals and Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, to look at the technicals.
To see Cortes and Ross analyze Navistar, watch the video above.