In an environment where consumer discretionary businesses are getting squeezed, Mark Travis might seem to have come up with a counter-intuitive stock pick. But to the CEO of Intrepid Capital Funds, Starbucks makes perfect sense.
"We're very valuation-sensitive in acquiring equity or debt," Travis told CNBC. "With Howard Schultz back at the helm at Starbucks, the private market value of those shares is a good bit higher than where they trade for today."
He also likes book publisher John Wiley & Sons.
"They acquired Blackwell of Great Britain last year," he noted. "They've repaid that debt relatively quickly."
Also on his list are Oil Dri, Applied Signal Technology and Mocon.
Disclosure information for Mark Travis was not immediately available.