Marvin Schwartz Makes the Case for Stocks

By on January 23, 2011

Marvin Schwartz, legendary value investor, was on CNBC Friday touting his favorite value stocks.  He unflinchingly makes a strong case for investing in Hewlett Packard (HPQ) and Travelers (TRV). Schwartz considers the overall market significantly underpriced.

Regarding Hewlett Packard, which he characterized as a mis-priced stock:

“This is a tremendous cash flow generation machine. Every month they generate $800-900 million of free cash flow. This is a company with a four-and-half billion dollar debt,” he said, adding, “They could wipe out the debt in six months, if they didn’t make any acquisitions.”

“I look upon it as a debt-free company. It’s the largest technology company by revenues, not earnings, in the world. It gets 55 percent of its revenues from abroad, which I think is excellent and growing rapidly,”

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