The share price of struggling daily deals company Groupon surged Friday, after investor Bill Miller gave the company an unexpected endorsement.
Saying that he liked the stock "a lot," Miller told CNBC's "Squawk Box" in an interview that he was "more attracted to stuff that has warts on it and hair and all that kind of stuff."
That description includes Apple, which has taken a beating at the hands of investors amid questions about its ability to innovate. Miller also endorsed the company's fundamentals, arguing they have taken a back seat to overwhelming market pessimism.
The portfolio manager of the Legg Mason Opportunity Trust fund—which returned nearly 40 percent in 2012—acknowledged that fired Groupon CEO Andrew Mason is a "smart guy" and did a great job building the company, but added the business may have been too complex for him to manage.
(Flashback: Andrew Mason Out as Groupon CEO)
Chairman Eric Lefkofsky and Vice Chairman Ted Leonisis will lead the company on an interim basis.
Making a case for the battered website, Miller said that "Groupon's got a $1.2 billion of cash. They have no debt." Although investors have been wary of Groupon, Miller argued that "the opportunity [here] is tremendous. Expectations are low. The stock is very cheap."
He said his average cost of Groupon stock is about $5 a share.