Barron's Interview Lee Cooperman & Steven Einhorn
14872 views
Rate Now: 1 2 3 4

average rating: 0.00 / 0 ratings
Created by barrons2
DESCRIPTION:

Date updated:07-26-2008

Interview With Lee Cooperman and Steven Einhorn, Top Managers, Omega Advisors

symbol name last price % change open
  • +
  • GLW
    Corning Inc
  • $17.84
  • -1.16%
  • $18.04

Q: Let's talk about specific stocks. Einhorn: This is a market where you want dominant companies with good balance sheets and that aren't dependent on financial intermediaries to fund their growth. There are plenty of dominant companies out there that are selling at attractive multiples. Cooperman: Step back and think about Corning [GLW]. There are thousands and thousands and thousands of retailers that sell flat-screen TVs. There are roughly 50 companies that make the panels. There are only three guys that make the glass. Typical U.S. companies are earning 14% or 15% on equity; Corning earns 27%. If you put in the recent numbers, it is higher than that. The stock sells at 10 times what we think they will earn next year, compared with about 13 times for the S&P. At the beginning of the year, the consensus for this year's earnings was $1.70 a share. Now it's $1.92. Next year, they were supposed to earn $1.84 and now it's up to $1.99. We think they'll do better than that. They're a world-class company in a growing industry. They claim -- and I just visited the company -- that just 10% of the market opportunity in flat-screen TVs has been penetrated.

People owning GLW also tend to own: AOBCOGOCRYPGELGRMNGSMDRX

TheStreet.com Rating: C+ What is this?

  • +
  • RIG
    Transocean Ltd
  • $83.40
  • -0.70%
  • $84.17

Q: How about another pick? Cooperman: Another holding is Transocean [RIG], which has one one-third of the world's supply of deepwater drilling rigs. It's basically the only area of the world where the opportunity exists. Most onshore deposits around the world have been discovered. Look at what is happening in Brazil, which has had a huge discovery offshore. I also think we are going to open up the outer continental shelf to drilling. Transocean has a backlog of more than $40 billion, which is about the same as its market cap.

People owning RIG also tend to own: AEPAPABACCOFCOPCVXDELL

TheStreet.com Rating: B- What is this?

  • +
  • WLP
    Wellpoint Inc.
  • $61.65
  • -0.06%
  • $61.63

Q: Which ones in particular? Cooperman: We own WellPoint [WLP], UnitedHealth Group [UNH] and Aetna [AET]. These stocks have gotten decimated much more so than their businesses have.

People owning WLP also tend to own: AFLBABACBAXBENCMCSACSCO

TheStreet.com Rating: B- What is this?

  • +
  • AET
    Aetna Inc. New
  • $29.20
  • -1.38%
  • $30.09

Q: Which ones in particular? Cooperman: We own WellPoint [WLP], UnitedHealth Group [UNH] and Aetna [AET]. These stocks have gotten decimated much more so than their businesses have.

People owning AET also tend to own: BZHCGIFBPHOVKBHLUKMDC

TheStreet.com Rating: B- What is this?

  • +
  • UNH
    Unitedhealth Grou
  • $32.41
  • -0.40%
  • $32.23

Q: What recommends these companies? Cooperman: It is valuation, basically. If you buy things at the right price, that's half the game; we don't need sex appeal. UnitedHealth is generating a 12% free-cash-flow yield, and they've bought back a lot of stock. They generate tremendous amounts of free cash flow. It sells at half the market multiple and, over time, you are probably looking at maybe 1% growth in employment, with 5% health-care inflation. So you have the top line growing 6%. We think the bottom line will grow 8% to 10%. These guys could afford to buy back 8%-10% of their company annually. As far as ranking these companies, I would start with UnitedHealth, followed by WellPoint and Aetna.

People owning UNH also tend to own: AMGNBHICAHCMCSACOFCVXDOW

TheStreet.com Rating: B- What is this?

  • +
  • SLM
    Slm Corporation
  • $10.38
  • 0.00%
  • $N/A

Q: Any financials look interesting? Cooperman: One is Sallie Mae [SLM]. Probably 95% of its loans are government-guaranteed and the stock sells at 10 times earnings. A year ago, a private-equity firm wanted to buy Sallie for 60 bucks. You can buy it now at 18.

People owning SLM also tend to own: ABPIADPTDCREBAYEDCIFMDFNM

TheStreet.com Rating: D+ What is this?

  • +
  • CIT
    Cit Group
  • $30.61
  • -0.46%
  • $31.76

Q: What about CIT Group [CIT]? Cooperman: That's more speculative. Its book value is about $15 a share. We think they can earn $1.50 to $2, and we wouldn't be surprised if the company is sold.

People owning CIT also tend to own: ANATBGBTUCNHCPOETREXH

TheStreet.com Rating: No Rating What is this?

Portfolio not tracked!

Comments not available

ADD YOUR COMMENTS:

Must-See Charts: Ralcorp, Del Mo...

By Jonas Elmerraji Posted on Feb. 9, 2010 With stocks continuing to underwhelm in yesterday’s trading session, the attention is turning toward trading. After all, tec...

02.09.10 | 12:06 PM
This Week's 'Barron's' Roundup

By Roberto Pedone Posted on Feb. 8, 2010 Good Buys For Bad Times: This Barron’s article says with the U.S. economy expected to grow by only 3% in 2010, investors shou...

02.08.10 | 16:28 PM
Cramer's Take on Headline Stocks...

Posted on Feb. 8, 2010 Finance Professor Scott Rothbort will be answering questions on Stockpickr Answers on Monday, Feb. 8. Ask away! Regardless of why a stock is in...

02.08.10 | 14:45 PM
Rocket Stocks for the Week

By Jonas Elmerraji Posted on Feb. 8, 2010 Finance Professor Scott Rothbort will be answering questions on Stockpickr Answers on Monday, Feb. 8. Ask away! Investor an...

02.08.10 | 08:39 AM
more articles
The Presidential/Political Thread
01.02.08 | 08:05 AM From author Dave Cox
Everything Goldman Sachs. The in...
01.11.10 | 12:54 PM From author DogBones
Nymph's Trading Daily Trading Diary
04.13.09 | 01:10 AM From author Trading Nymph
Here is a Hidden Gem - FLL
01.15.10 | 18:19 PM From author adrianpena
more forums
today 's lists
Earnings Announcements

Here is a list of some of the companies that will report earnings on Wednesday, Feb. 10, 2010. For some of the companies below, we provide average EPS estimates from analy... more

Dividends: Tomorrow's Ex-Divide...

Below is a list of some of the companies that have their ex-dividend date Wednesday, Feb. 10, 2010. What is the ex-dividend date? According to Dividends.com: The ex-... more

Biggest % Gainers

Here are some of the largest % gainers from Feb. 9, 2010. more