Highlight's From Leon Cooperman's CNBC Appearance
Leon Cooperman appeared as a guest on CNBC on Monday. The Chairman and CEO of Omega Advisors commented on the economy, attractively priced companies and Carl Icahn's response to eBay.
- Cooperman noted that “Recession is not in the cards” and that the “Proper multiple on the market is 16x.”
- On American International Group (NYSE: AIG): “AIG sells at 80% of book value. AIG should return 10% ROE, or earnings of over $6 per share.” Cooperman sees shares going up more than 25 percent over the next 12 to 18 months.
- Related: Carl Icahn Isn't Happy About eBay's Board Member Rejection
- Cooperman commented that “banks are attractively priced.” The CEO of Omega Advisors specifically noted Citigroup (NYSE: C), JPMorgan Chase (NYSE: JPM) and Sallie Mae (NASDAQ: SLM). He noted that lending opportunities will be increasing.
- On Transocean (NYSE: RIG): Cooperman noted that the company yields about seven percent with a steep discount to the Net Asset Value (NAV).
- Cooperman also likes SandRidge Energy (NYSE: SD). During the analyst meeting, management reported that the NAV is within $10.00 to $15.00 per share. Although Leon Cooperman agrees more with the lower end, he noted that the stock is currently trading at six and a fraction with the potential for a substantial gain.
- On Atlas Energy (NYSE: ATLS): the Chairman and CEO noted that the parent company yields, 4.5 percent, Atlas Pipeline yields 8.5 percent, and Resource and Production yields 11 percent. He added that he also “likes” Halliburton (NYSE: HAL).
- Cooperman highlighted an approximate two percent stake in eBay (NASDAQ: EBAY). He remarked that he generally agrees with Carl Icahn on eBay saying, “we happen to agree. I think they should spin out a portion of paypal, monetize that, create a value, should lower their cost of capital and give them some flexibility managing their capital structure.”
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