BNN, Business Day: Beaten-down value plays
“Our next guest [David Barr] has been using the shaky state of the equity markets to put fresh money into stocks. Last August the Value Fund he manages had about a third of its assets in cash. Today it’s dropped down to about 10% cash.”
“[We’re] a lot more optimistic… You don’t make great returns in the stock market buying companies at 52 week highs at the end of a great five year run. Having a pullback in the markets like this presents great opportunities for us.”
“When we see stocks cut in half, that’s when we get really excited and start buying.”
He goes on to talk about several current picks:
- Wi-LAN (WIN): How cutting its dividend and being de-listed makes a stock a “buy”
- Photon Control Inc (PHO): The basic value story – precision technology with a market leading position in a big growth market.
- Quantum Corp (QTM): How legacy business is masking “free” growth.
- Espial Group (ESP) and Vixs Systems Inc (VXS).