Value investor Mario Gabelli said on Thursday he's bullish on a number of media stocks, equities exposed to European trucking, and one flavors and fragrances company.
The Gamco Investors chairman and chief executive's first pick in the media space is Sony.
He singled out the launch next year of Sony's virtual reality headset Project Morpheus and the strength of its Playstation 4 game console business.
"More importantly they're now thinking about profits. They're laying off people. The whole culture of Japan has changed," he said.
Gabelli thinks broadcasting giant Viacom has good scale ahead of anticipated restructuring and consolidation in the industry. He said it's only a matter of time before controlling shareholder Sumner Redstone and his family sell.
In Europe, he likes the look of French multinational Vivendi's cash reserves. "I don't know where they're going. I would love for them to buy an American company," Gabelli said.
Also on the Continent, the trucking market is in for a boom as the European Central Bank's stimulus program ripples through the market, he said. Gabelli believes European companies will be looking to consolidate within 12 months. U.S.-based international commercial truck maker Navistar could benefit from the economic upswing in Europe and is a bargain at $28 per share, he said.
Looking at the trend toward healthier eating, Gabelli picked International Flavors and Fragrances for its focus on manufacturing flavoring with less salt, sugar and ingredients exposed to antibiotics in the food chain.
Another trend he's hot on is companion pets. He pointed to veterinary and dental firm Patterson Cos. as an enterprise positioned to capitalize on increased spending on pets.