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Chris Hill: Alright, let's get to the stocks on our radar, and Steve will hit you with
a question. Ron Gross, you're up first. What are you looking at?
Ron Gross: Alright, Steve. I have Ampco-Pittsburgh, ticker symbol AP, a little tiny company, $228
million market cap. They make forged hardened steel rolls. I know you know what that is.
Let me explain -- they're large rolling pins that are used to form steel into different
shapes. The stock is up 83% this year. We hold it in the Deep Value Portfolio. But we've
actually had it on hold because the steel business is a mess right now. So, the new
CEO is diversifying through acquisitions, cutting costs, trying to turn this business.
If he continues to do it successfully, stock is cheap from here. But, it's by no means
a guarantee. That's why we've had it on hold. I'm taking another look to see if we want
to increase our position after the nice turnaround so far.
Hill: Steve, question about Ampco-Pittsburgh?
Steve Broido: How would an investor like me even just find this company? Where would I
go to learn about this? Am I searching for numbers? What am I looking for?
Gross: You would probably be searching for what we call small micro-cap companies, companies
under $500 million. Plenty of different ways to search for companies, screening tools out
there. These are often companies that are just under-followed and under-loved. And sometimes,
if you're careful, you can find a bargain.
Jeff Fischer: Or, you could subscribe to a Motley Fool service.
Gross: (laughs) Why didn't I think of that? Hill: Matt Argersinger, what are you looking at?
Matt Argersinger: I'm going with the company that's on our watch list in Million Dollar
Portfolio. It's called Illumina, ticker ILMN. Leads the market for genomics sequencing machines,
which are vital for biotech companies, cancer research, large hospitals. It has a very compelling
razor-and-blade business model. The stock is down about 40% from its high. It really
is dominant in its market, and it's a company we're taking a very close look at. I think
it's a great way to play biotechs without actually investing in biotechs.
Hill: Steve, question about Illumina?
Broido: Will genomic sequencing cure cancer in the next 50 years?
Argersinger: In the next 50? Absolutely. Broido: Oh, that'd be awesome.
Argersinger: I think that could happen in 10 years, the way the technology is improving.
Hill: Jeff Fischer, what are you looking at?
Fischer: Well, I was going to go with Cabela's, because it appears that Bass Pro Shops is
trying to buy them out, and I keep trying to talk about companies that are possibly
being acquired here. But, I just got a text from my brother that my sister-in-law is in
labor. So, I'm going to do an about-face in honor of that, and I'll go with Carter's,
ticker CRI. Carter’s, of course, makes clothing, apparel, for babies and young children in
the U.S. It's U.S.-based only. It's been a great stock the past five years and longer.
It's a Motley Fool recommendation, as well. Gross: What size company is that? Sorry, Steve.
Fischer: It's a $5 billion market value. Hill: Steve, question about Carter's?
Broido: The always-on-sale thing -- I've bought stuff at Carter's for my kids -- it seems
like there's always this great sale going on. Does that help them or hurt them?
Fischer: It appears to be helping.
Hill: (laughs) You're shopping there, so ...
Broido: Good point, I am definitely shopping there because of the sales.
Fischer: Isn't everything everywhere always on sale now? Mostly?
Gross: A coupon or a discount, or ...
Hill: Unless we're talking about Tiffany's, which really has just made a lot of hay out
of the, "Nope, we're never going down market."
Gross: I find it interesting that Carter's is a standalone company. To me, it sounds
like a brand that would be part of a larger--
Broido: Like a steel company? Gross: Yeah, like Ampco-Pittsburgh, for example.
Fischer: Yeah, that could make sense. Carter's and OshKosh, both good brands that could be
rolled into some larger apparel company. Gross: You heard it here first.
Hill: Steve, three very different businesses. Illumina, Carter's, Ampco-Pittsburgh. Any
one of those three you feel like adding to your watchlist?
Broido: I'd like to look at Illumina. That sounds very interesting to me.
Argersinger: There you go, Steve-O!
Gross: Fixed. Hill: Really?
Gross: He has kids, too!
Hill: With all the money you're spending at Carter's?
Broido: They are growing. Hill: (laughs)
Argersinger: Cancer or Steve's kids? Cancer.