- The Roundtable took place in early January, and Oscar Schafer's first pick, Advisory Board (NASDAQ:ABCO) has already soared higher after Elliot Management disclosed an 8.3% stake on Jan. 12. Updating, Schafer says the activist's presence boosts the chance the company is sold in the near-term, and thinks ABCO could be worth as much as $60 per share to the right buyer vs. Friday's close of $45.
- Another pick is to buy the dip in Europe's largest cable TV operator, Liberty Global (NASDAQ:LBTYK). There's not going to be a sale to Vodafone, but European cable remains an attractive business, and the cord-cutting threat to Liberty is overblown. Look for John Malone to use ample excess cash flow to buy back cheap stock and create value through acquisitions.
- T. Rowe Price's Brian Rogers has an interesting pick in Legg Mason ("the other great investment firm in Baltimore"). After a rough 2016, LM shares can be had for less than book value. Also, Rogers notes industry acquisitions typically get done for 1-2% of AUM, and Legg sells for 0.4% of AUM. At the rate CEO Joseph Sullivan is buying back stock, there may not be any shares soon. In the past six-seven years, share count fell by about 38%.