Staples stock has fallen more than 40 percent in the last 12 months and the FTC is blocking its merger with Office Depot, but Larry Pitkowsky of the GoodHaven Fund says it's a buy opportunity.
Stocks having a tough time recovering from their morning deficit despite the rising oil prices let's discuss the marksman as the Larry the koskie. He's co portfolio manager and good haven fund activate capital welcome letter thank you right. Oil prices energy prices up but overall market down in not making major moves what you re incidents. You know Fred in my party Keith and I are primarily. Stock pickers and risk managers that we read every quarter when earnings are Bradford was corporate America about a hundred. Earnings releases and the results look you know pretty mediocre overall also color us skeptical about day you work. Market rise. Any particular earnings. If it's mark. You know not today but only after it it was a crisis and you know industrial and use the way Hitler really struggling and organic growth that's better that it worse but. It means you know for us will just assume what we're seeing today economically is what oh and it doesn't look. Spectacular that doesn't mean we won't. Look for some bargains between everyday but that's. Us and 500 is up 9% since forever or more rise born in the you know for people like guys and world Wii's cheering for weaker market and find bargains and 9% in the market we're helping. Them percent but. Where much happier when there's a little bit more Latin way Butler Derrick goals fourth largest holding. The stock is up 76%. I guess so far this year is or more room on the upside for talks there. Are primarily in you know a mining company Barrick. Under new active chairman named John Thornton who laid out a plan over the last year and a half to return the company to its former glory. By focusing on reducing its costs reduce its debt being able to generate free cash no matter the price of gold. And so far management. Including chairman of the Wharton. You push on Smart conditions. Have done a fabulous job we think there's still plenty of upside despite. This doctors it rise in the recent past staples what your hold it FTC's going against it on its merger with office deeply also got the likes of Wal-Mart target ads on its share. Why hold this. You know it's down about what you sound last. It is and and it's now gotten very interesting how we owned it before. In the merger with Office Depot was announced we were always skeptical. Human how aggressive government has been stopping in market averages that it would be approved. But after the government stepped in to block it. We think that the price decline has overshot on the down side you now have a dominant company after businesses on line. It's well managed it's only about ten times free cash flows and over 5% dividend yield and the government just at some guy able research for you when told Jews that there are dominate that sector and that's what's more government so. And maybe worsen the government but for investors it should tell them oh here's a company that has a strong underlying. Business. It's still force. We are from these prices going forward okay thank you for doing that. I think Stiller to koskie of the good haven fun I'm Fred Katayama this is.