Top value investor Ron Muhlenkamp is finding value in large-cap technology stocks, as well as some picks in the automobile industry.
“European banks and insurance companies were big sellers of big-cap technology in 2010 when the extensive problems in Europe were being revealed,” Muhlenkamp tells TheStreet.com. “Pressure has kept stocks cheaper than they otherwise would have been. When we look for values in the current marketplace, we are finding them in big-cap tech, particularly IBM, Cisco and Oracle. That selling should be over now. That’s our rationale for why they have stayed this cheap for this long.”
Muhlenkamp also says there are “at least a few more years in the expansion of auto sales”, which has him bullish on Ford and a couple other auto-related stocks. He also discusses some picks in the natural gas arena, and the medical diagnostic testing industry, where he says a “duopoly” is present.