A Thematic Approach to Deep-Value Investing: a Wall Street Transcript Interview with David Steinberg, Managing Partner and Founder of DLS Capital Management
67 WALL STREET, New York - June 10, 2013 - The Wall Street Transcript has just published its Deep Value Investing Report offering a timely review to serious investors. This special feature contains expert industry commentary through in-depth interviews with highly experienced 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 - Cyclical Sectors - Exposure to Emerging Markets - Large-Cap, Deep-Value - Value Oriented Strategy - High-Quality Companies - Value Investing - Deep Value
Companies include: Hewlett-Packard Company (HPQ), Micron Technology Inc. (MU), BP plc (BP), Barrick Gold Corporation (ABX), Kinross Gold Corporation (KGC), Yamana Gold, Inc. (AUY) and many others.
In the following excerpt from the Deep Value Investing Report, a deep value portfolio manager discusses his investment outlook and valuation methodology:
TWST: How plentiful would you say are deep value opportunities in today's market?
Mr. Steinberg: It's really interesting, because there are some thematic groups that really are standing out. I just mentioned the coal industry. Gold miners are now really out of sync versus 50-, 100-year valuations, because gold corrected and everybody ran for the door and they've left gold miners for dead.
Coal companies, due to short-term oversupply of coal, due to warm weather a couple of years ago, and a little slowing in China and in Europe, have excess supply. So those two thematic groups are extraordinarily depressed and probably represent pretty good significant value going forward. Now, there are some assumptions you're going to have to make. Is gold going to stabilize? And for coal, do you believe in the supply and demand imbalance rebalancing itself? No matter what you find, there are always going to be variables that have to work your way or renormalize to help a lot of the themes.
TWST: Are you finding any particular geographic markets to be especially opportunistic today?
Mr. Steinberg: Yes, things related to emerging markets have grossly underperformed the developed U.S. markets, so things that feed in, like commodity companies, like copper companies and metals companies, we've found a lot of value - even in oil companies trading at significantly lower levels than they historically do. For example, let's take...
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