Tilson likes large cap stocks, especially tech stocks like Microsoft and Dell, even after the recent run up. He also likes JC Penney, Goldman and Citi.
"They’re incredible companies that are earning profits and trading at 10 to 12 times earnings with strong balance sheets and they’re returning cash to shareholders – they’re not exciting but if you’ve got a 5-10 year horizon and you want to earn better returns that Treasurys I think they’re the way to go."
“Between Cisco, Oracle, Intel, Hewlett Packard, Dell, Microsoft and Apple – every value guy I know - they own 2 or 3 of those.”
“We still think Dell is cheap. Although it’s gone from 5.5 earnings to 7 times earnings it’s still pretty darn cheap.”
"JCP has low sales per square foot relative to its peers and quite high expenses relative to peers – this is an underperforming and undermanaged business that now has a great retail guy. I think there’s a lot of upside here."
"Citi is still trading at a 36% discount to tangible book – even after this run up. Goldman is trading at 7% discount to tangible book. We think Goldman should be worth a premium to book and Citi is worth at least book"
"They’re incredible companies that are earning profits and trading at 10 to 12 times earnings with strong balance sheets and they’re returning cash to shareholders – they’re not exciting but if you’ve got a 5-10 year horizon and you want to earn better returns that Treasurys I think they’re the way to go."
“Between Cisco, Oracle, Intel, Hewlett Packard, Dell, Microsoft and Apple – every value guy I know - they own 2 or 3 of those.”
“We still think Dell is cheap. Although it’s gone from 5.5 earnings to 7 times earnings it’s still pretty darn cheap.”
"JCP has low sales per square foot relative to its peers and quite high expenses relative to peers – this is an underperforming and undermanaged business that now has a great retail guy. I think there’s a lot of upside here."
"Citi is still trading at a 36% discount to tangible book – even after this run up. Goldman is trading at 7% discount to tangible book. We think Goldman should be worth a premium to book and Citi is worth at least book"
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