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.