Michael Price is a well-known value investor who specializes in distressed and special situation investing. He has become one of America’s most successful value investors. Price graduated in 1973 from the University of Oklahoma an started his career as a research assistant at Mutual Series with a renowned value investor named Max Heine (Grover, 2011). After Max Heine’s death, Michael took over Mutual Series until he sold the firm to Franklin Templeton Investments. Price continued to work at Franklin Templeton until he became the Chairman of the Mutual Series fund. In 2001, Price started his own hedge fund called MFP Investors LLC and is now the President and Managing Partner in New York (Michael Price of MFP Investors Inc., 2013). Price is …show more content…
(GILD). Gilead’s shares peaked back in 2015 but have since lost more than 40% of their value. Sales of this pharmaceutical company have dropped off over the past couple of years as well (Blankenhorn, 2017). The reason this would be a good pick for Price and is because of its current balance sheet and its potential to merge with a few different companies. With a little push from an investor this company could potentially be looking at a buying spree of a couple of different companies. Gilead also has no debt and $32 billion in cash on their books. This type of balance sheet can be used for a major acquisition like I had just mentioned above. If GILD is bought into before these acquisitions it can be a very big value buy as its stock price is currently cheap. Gilead is a great example of a company that Price would buy into and then get management to make a move on certain …show more content…
(EBAY). Some value stocks become cheap because investors believe a competitor is about to eat (or already is eating) its lunch (Blankenhorn, 2017). eBay is an auction site that was one of the first true e-commerce success stories is not getting beat out by the giant, Amazon.com Inc. eBay’s shares trade at less than 6 times earnings while the market continues to set new records be of Amazon and the success it has had. The company’s balance sheets look good with nearly $7.13 billion of cash and short-term securities on its books at the end of 2016. eBay now includes StubHub, local classified ad sires as well as lets merchants access its application program. They have been about to create business spinoffs off the success of eBay itself. eBay has also opened up more markets going into 2017 and the stock has advanced 13%. eBay is never going to be able to catch Amazon in the market but that doesn’t mean they can’t still find a way to be successful and be a value buy for any