Leon Cooperman, CEO of Omega Advisors believes that even in this pre-market, very good and promising profit opportunities can be found.
Cooperman’s position in the market is rather neutral, but he believes that behind the S & P500 there is more potential for a new climb than a decline.
“As much as I think S&P is fairly priced, I find many companies that are extremely attractive. Market cycles do not end at an average, they end at an overvaluation,” says Cooperman. The investor believes that it is not normal to find so many cheap stocks in this 10-year bull market.
With this market failure, Cooperman found three stocks that are extremely promising.
Company in the healthcare sector, but specializing in healthcare. The company faces serious political risk, but according to Cooperman, based on growth in the company’s users and current price levels, stocks may rise by 12 to 14% next year. He also argues that while revenues are growing much faster than other companies in the sector, market valuation remains low. The company has spent a significant amount on the acquisition of the pharmaceutical company Express Scripts, but Cooperman believes the dept-to-capital ratio will improve quickly.
Last month, WPX Energy, which runs oil and gas wells, announced a huge buyback program. The goal of the company is to stimulate additional cash flows for the second half of 2019. According to Cooperman, this is a very positive development for the company. This would mean that the company would be able to buy back its own shares on a permanent basis, but according to the manager, the shares are currently undervalued, at least half of the net asset value. Potential business consolidation has not yet been fully reflected in price.
Cooperman also admitted to having a significant stake in New Media Investment Group. This is the company to be purchased by USA Today publisher Gannett. A deal that the billionaire thinks will be extremely good. He also noted that stocks are not as expensive and the potential return is endless given that he is in the print media business. Despite the industry’s challenges, New Media generates nearly 1/4 of its digital media revenue, with projections promising. The management of the company also buys shares.
Source: Business Insider Prime
Trader Martin Nikolov