Investment Chief Likes Biggest Companies' Shares
Forget the small fry and medium-cap companies: Andy Bishel thinks some of the market's largest names have the richest potential. The CIO of SKBA Capital Management gave "Morning Call" viewers two stock recommendations that may surprise them.
Bishel told CNBC's Liz Claman that "We love companies that have underperformed and done poorly." Specifically: Citigroup -- which "has gone nowhere in a decade" -- and Time Warner.
Why favor firms some analysts call overgrown?
Bishel explained that in the case of the financial giant, there has been "a lot of good news" of late, as Citigroup is "finally reorganizing and getting its business together." He predicts that the bank's stock "will do much better."
He says that Time Warner, which he "really didn't like a few years ago," has more promise now: In the low 20s, it's "a stock where you're getting AOL for free." And with the AOL Internet service provider making great strides in its shift from subscription-based to ad-driven business, Bishel sees a boost to Time Warner's share price in the near future.