John Rogers, Ariel Investments chairman & CEO, shares his top three bargain plays.
John Rogers: Discount stock picks
Transcript
John Rogers. we have been adding to some of our favorite fames have gotten cheap. our gaming stocks have been crushed all year. we think they’re bargain prices, international game tech following selling at 11 times earnings, we think is our best bargain into today’s market. we seen a proliferation of markets, casinos if you that you and hawaii have casinos. is that your thesis or a core business? we think slot machines are here to stay. it is a core business. you are right, casinos everywhere, it is also a global business. you will see more and more in asia, more and more in latin america as governments are finding ways to generate revenue instead of having to raise taxes. your other pick, western union is interesting we seen a proliferation of possibly payments, it’s a little off the radar, everybody says cash is dead. wouldn’t that mean western union will suffer? is there we don’t think so. especially in the global money transfer business. you are moving money around the world. a place where cash is very important. even though there are these new technologies, we think the families that use western union depend on it leak cash. i want to go a little bruce springsteen on you if i can, janice capital had glory days of its own, it’s one of the high flying funds that benefitted from the internet boom. it fell to earth. it’s come back a little bit. why are you so bullish on janet that has a name that has negative connotations vis-a-vis the internet stocks. we think it’s a relative price. when you look at t. rowe price, they sell at higher multiples than janice. janice are more diversified than ever. their fixed physical business is doing really well. the intech business is strong. we like the diversification. they’re making progress with tear moves to sell their products in all different types and ways around the world.
