Latest news with #Gabelli
Business Insider
27-05-2025
- Business
- Business Insider
The Last Great (Non-Government) Paramount (NASDAQ:PARA) / Skydance Roadblock: Mario Gabelli
For everyone who has been keeping score at home, you know like I do that the merger between entertainment giant Paramount (PARA) and Skydance is far from a done deal. While Paramount still, at last report, believes that the merger can be completed before June ends, there were still some issues left. The Federal Communications Commission (FCC) has not yet signed off. A lawsuit between Paramount and President Donald Trump is still in place. Two smaller lawsuits from Rhode Island and New York City pension funds are in the way. Confident Investing Starts Here: And then, there is Mario Gabelli. Gabelli represents investors who, together, own around 12.5% of Paramount's class A voting shares. This makes Gabelli head of the second-largest bloc of class A shareholders next to Shari Redstone. And Gabelli has been objecting to the merger almost since its inception, but not much has been heard on that front recently. With that massive question mark in place, I went looking. I managed to find the contact information for Mr. Christopher Marangi, the co-CIO for GAMCO Investors, founded by Mario Gabelli himself. And over the course of several weeks, I managed to get Mr. Marangi to sit down for a few questions about the current state of the lawsuit, and just what was going on in relation to Mr. Gabelli's pursuit of Paramount. The Question and Answer Portion TipRanks: Back in July 2024, Mr. Gabelli brought in the lawsuit in Delaware's Chancery Court, seeking information to ensure investors got a worthwhile deal themselves. Paramount seemed concerned about that deal, to the point that reports noted that RedBird Capital's Gerry Cardinale was dispatched to speak to Mr. Gabelli personally about the matter. What was Mr. Gabelli hoping to find as a result of that case? Marangi: As you are aware, National Amusements chose to conduct the sale of Paramount through a two-step process. In Step 1, NAI would sell themselves (along with the controlling interest in Paramount) to Skydance and in Step 2, Skydance would merge with Paramount. As a practical matter, this had the effect of allowing Skydance/NAI to keep the price paid for NAI's Paramount stake confidential. In addition, the transaction was conducted without a shareholder vote which left GAMCO in the position of being forced to either take inferior stock (i.e. non-voting) in the merged company or cash that may have been deeply discounted from what NAI received. GAMCO launched what it has called Project Fishbowl to gather information about the deal struck between National Amusements (NAI) and Skydance/RedBird, including the price NAI had secured for its voting A shares. Delaware has a mechanism under Section 220 of Delaware Corporate Law that allows shareholders like GAMCO to review books and records of the Corporation including related to these negotiations. The matter eventually went before the Chancery because GAMCO was dissatisfied with the materials they were provided under Section 220. The Delaware Chancery Court issued a ruling regarding our 220 investigation saying that Gabelli 'has stated and proved a credible basis to suspect wrongdoing' by Paramount in its books and records action. TipRanks: As for the conversation between Mr. Gabelli and Gerry Cardinale, what topics did it cover? What actually came out of that conversation, if anything? Marangi: No comment. TipRanks: After that, in October 2024, reports from the New York Post noted that Mr. Gabelli was still taking meetings with lawyers in a bid to land 'a big payday for his clients.' But Mr. Gabelli also, the report noted, discovered that the lawyers in question were working for Paramount on one level or another. Has Mr. Gabelli managed to find a legal force that was sufficiently inclined to pursue Paramount, or is this still ongoing? Marangi: GAMCO, on behalf of our clients, had retained highly skilled counsel that has extensive experience in dealing with similar matters. TipRanks: In January 2025, a report from Bloomberg noted that Mr. Gabelli was looking for a set of files from Paramount, which were said to contain information on Shari Redstone's deal with Paramount / Skydance, and what she would specifically gain. Mr. Gabelli turned to a judge in said matter, as Paramount refused to hand over the files. A Quartz report from September 2024 revealed that Shari Redstone stood to make $530 million personally from the deal; has Mr. Gabelli's investigation found out anything contrary to that, or is that number accurate as it stands? Marangi: See response to question 1. The price NAI received for its voting A shares remains undisclosed though based on publicly available data we continue to suspect it was in excess of the $23 per share non-NAI shareholders are being offered for their A stock. TipRanks: After January 2025, information about Mr. Gabelli's pursuit of Paramount seems to have gone quiet. Where does his search stand today? Is there any hope of him preventing the Paramount / Skydance merger? Has he decided to abandon the pursuit altogether? Marangi: The merger remains subject to regulatory review. The 220 matter was before the Delaware Court in April. GAMCO has also notified the FCC regarding its objection to the merger without additional disclosure. It is unlikely GAMCO, or any shareholder for that matter, would be able to prevent the merger. GAMCO will continue to evaluate its options to protect the interests of the more than 700 of its clients who own Paramount stock. Overall? Not Much. And that is where we stand today. Though the answers were, perhaps, not as definitive as we would have hoped: further planned legal action or an attempt to derail the merger—even Mr. Marangi acknowledges the unlikeliness of preventing the Paramount / Skydance merger—all seem comparatively impossible to reach. But one thing is clear: at least now we know what the current state of affairs is. We also have a pretty good idea that any hope Paramount had of finishing the merger by July 4 is largely misplaced. There are simply too many outstanding issues as yet for this to conclude in the next two to six weeks. Is Paramount Stock a Good Buy Right Now? Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, seven Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 0.33% loss in its share price over the past year, the average PARA price target of $11.92 per share implies 0.42% downside risk.
Yahoo
10-05-2025
- Business
- Yahoo
Telephone and Data Systems, Inc. (TDS): Among Billionaire Mario Gabelli's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Small-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Telephone and Data Systems, Inc. (NYSE:TDS) stands against other small-cap stock picks with huge upside potential. Mario J. Gabelli founded Gabelli Asset Management Company in 1977. The firm is now called GAMCO Investors and is an American firm headquartered in New York. It specializes in providing investment advice and brokerage services to mutual funds, institutional clients, and select investors. It is majority-owned by Mario Gabelli, who is the Chairman and CEO of it. GAMCO Investors includes two businesses: GAMCO Asset Management, with institutional and separate accounts; and Gabelli Funds. The last reported 13F filing for Q4 2024 included $9.55 billion in managed 13F securities and a top 10 holdings concentration of 16.81%. Gabelli stayed true to the principles of value investing and used a solid base created by Warren Buffett and Ben Graham, while adding some of his elements to the mix. He believes that value investing isn't focused on short-term market movements. He looks for the ignored and unloved companies that nobody covers for whatever reason, with a good business, solid management, and a good price. As January was ending, Gabelli joined 'Squawk Box' on CNBC to discuss a range of topics. He explained how the stock market's performance is tied to company earnings, revenue growth, gross margins, expenses, and taxes, but most importantly to the market multiple, which is influenced by interest rates. These are shaped by debt, deficits, and overall confidence. Gabelli also mentioned that strategic corporate M&A was returning after a freeze caused by regulatory uncertainty and some failed deals. Activist investors are also seeking greater visibility and pushing for changes at companies. He argued against reducing the corporate tax rate below 21% but advocated for a minimum tax on a cash basis. He called for the restoration of 100% bonus depreciation, which would allow businesses, such as farmers, to fully write off new equipment purchases immediately, thereby encouraging investment in technologically advanced machinery. Gabelli mentioned that similar incentives should apply to capital expenditures in sectors like cable and referenced comments from Hans Vestberg. He noted that while corporations currently receive tax deductions for capital expenditures, these are spread over longer periods, and accelerating them would provide more immediate benefits. Gabelli graduated summa cum laude in 1965 from Fordham University's College of Business Administration in 1965 and holds an MBA from Columbia University Graduate School of Business. He has received honorary doctorates from Fordham University and Roger Williams University. He also serves on the Boards of Boston College, Roger Williams University, Columbia University Graduate School of Business, the American-Italian Cancer Foundation, and the Foundation for Italian Art & Culture. He is a Trustee of the Winston Churchill Foundation of the US and the EL Wiegand Foundation. Gabelli was honored as Morningstar's Portfolio Manager of the Year in 1997, named Money Manager of the Year by Institutional Investor in 2011, and is a member of Barron's All-Star Century Team. To compile the list of billionaire Mario Gabelli's 10 small-cap stock picks with huge upside potential, we sifted through the Q4 2024 13F filings of GAMCO Investors from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks that were trading between $1 billion and $10 billion and ranked the stocks in ascending order of this upside potential. We have also added GAMCO Investors' stake in each company and the hedge fund sentiment around each stock. Note: All data was sourced on May 8. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A well-dressed executive walking along a network of wires, demonstrating the power of a telecommunications company. GAMCO Investors' Stake: $65.33 million Number of Hedge Fund Holders: 36 Market Capitalization as of May 8: $3.67 billion Average Upside Potential as of May 8: 50.10% Telephone and Data Systems, Inc. (NYSE:TDS) is a telecom company that provides communications services to consumers, businesses, and government in the US. It operates through three segments: UScellular Wireless, UScellular Towers, and TDS Telecom. It sells and distributes its products through third-party direct sales, retail stores, sales agents, and an online platform. Over the past three years, the company's ongoing fiber program in its TDS Telecom segment has expanded TDS Telecom's footprint by over 30%. In Q1 2025, TDS Telecom delivered 14,000 new fiber service addresses and anticipates achieving 150,000 fiber addresses for the full year. While fiber net additions of 8,300 in the quarter were lower than in previous periods due to the timing of service address delivery, the company expects these additions will increase as build-out accelerates throughout the year. TDS Telecom is actively investing in its fiber infrastructure, with more than 80% of its full-year capital expenditures dedicated to fiber in 2025. This investment supports both expansion markets, primarily in Wisconsin and the Pacific Northwest, as well as the new Enhanced A-CAM (E-ACAM) program, which will bring fiber deeper into rural communities. The company has already begun construction in its first E-ACAM market in Wisconsin. Overall, TDS ranks 1st on our list of billionaire Mario Gabelli's small-cap stock picks with huge upside potential. While we acknowledge the potential of TDS as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TDS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
07-05-2025
- Business
- Yahoo
NVIDIA Corporation (NVDA): Among Billionaire Mario Gabelli's Large-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Large-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against Billionaire Mario Gabelli's other large-cap stock picks with huge upside potential. Mario Gabelli needs no introduction, having risen to become one of the most successful money managers on Wall Street, backed by a research-driven equity investment style. Having founded Gamco Investors, formerly Gabelli Asset Management Company, in 1977, the investment firm has grown to over $32 billion in assets under management with a portfolio spread over 800 stocks. Therefore, GAMCO is one of the most diversified hedge funds, offering exposure to some of the biggest and fastest-growing market segments. Over the years, Gabelli has relied on a value investment strategy that focuses on stocks trading below their fair value. In return, he looks for catalysts that could cause the stock's value to rise substantially. Some of the catalysts the fund manager often looks for include the sale or spinoff of a business. Mergers, industry consolidation, or regulatory changes also act as tailwinds in driving share value. The value investment strategy has been the catalyst behind GAMCO investors achieving impressive annualized returns of 16.3% since inception. READ ALSO: Billionaire David Tepper's 10 Stock Picks with Huge Upside Potential and Billionaire Jim Simons' RenTech's 10 Small-Cap Stock Picks with Huge Upside Potential. Likewise, GAMCO Investors is well positioned to capitalize on emerging opportunities in the overall stock market, pulling back. Valuation levels have pulled back significantly in the aftermath of the stock market coming under pressure amid the US tariff-fueled trade war. The announcement of President Donald Trump's 'Liberation Day' tariffs caused a significant upheaval in the stock and bond markets, resulting in the loss of trillions of dollars in investor wealth. While the administration temporarily suspended most reciprocal tariffs on April 9 for a period of 90 days, the looming threat of a global trade war poses risks to economic expansion. It is likely to shift capital flows in the equity markets. Both policymakers and market players are also wary of the potential for a financial 'mishap,' stemming from erratic movements in the U.S. Treasury market. Federal Reserve Chair Jerome Powell warned that current tariffs are 'significantly larger than expected,' adding that 'the same is likely to be true of the economic effects, which will include higher inflation and slower growth.'
Yahoo
07-05-2025
- Business
- Yahoo
UnitedHealth Group Incorporated (UNH): Among Billionaire Mario Gabelli's Large-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Large-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other billionaire Mario Gabelli's large-cap stock picks with huge upside potential. Mario Gabelli needs no introduction, having risen to become one of the most successful money managers on Wall Street, backed by a research-driven equity investment style. Having founded Gamco Investors, formerly Gabelli Asset Management Company, in 1977, the investment firm has grown to over $32 billion in assets under management with a portfolio spread over 800 stocks. Therefore, GAMCO is one of the most diversified hedge funds, offering exposure to some of the biggest and fastest-growing market segments. Over the years, Gabelli has relied on a value investment strategy that focuses on stocks trading below their fair value. In return, he looks for catalysts that could cause the stock's value to rise substantially. Some of the catalysts the fund manager often looks for include the sale or spinoff of a business. Mergers, industry consolidation, or regulatory changes also act as tailwinds in driving share value. The value investment strategy has been the catalyst behind GAMCO investors achieving impressive annualized returns of 16.3% since inception. READ ALSO: Billionaire David Tepper's 10 Stock Picks with Huge Upside Potential and Billionaire Jim Simons' RenTech's 10 Small-Cap Stock Picks with Huge Upside Potential. Likewise, GAMCO Investors is well positioned to capitalize on emerging opportunities in the overall stock market, pulling back. Valuation levels have pulled back significantly in the aftermath of the stock market coming under pressure amid the US tariff-fueled trade war. The announcement of President Donald Trump's 'Liberation Day' tariffs caused a significant upheaval in the stock and bond markets, resulting in the loss of trillions of dollars in investor wealth. While the administration temporarily suspended most reciprocal tariffs on April 9 for a period of 90 days, the looming threat of a global trade war poses risks to economic expansion. It is likely to shift capital flows in the equity markets. Both policymakers and market players are also wary of the potential for a financial 'mishap,' stemming from erratic movements in the U.S. Treasury market. Federal Reserve Chair Jerome Powell warned that current tariffs are 'significantly larger than expected,' adding that 'the same is likely to be true of the economic effects, which will include higher inflation and slower growth.'
Yahoo
07-05-2025
- Business
- Yahoo
ASML Holding N.V. (ASML): Among Billionaire Mario Gabelli's Large-Cap Stock Picks with Huge Upside Potential
We recently published a list of Billionaire Mario Gabelli's 10 Large-Cap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where ASML Holding N.V. (NASDAQ:ASML) stands against other billionaire Mario Gabelli's large-cap stock picks with huge upside potential. Mario Gabelli needs no introduction, having risen to become one of the most successful money managers on Wall Street, backed by a research-driven equity investment style. Having founded Gamco Investors, formerly Gabelli Asset Management Company, in 1977, the investment firm has grown to over $32 billion in assets under management with a portfolio spread over 800 stocks. Therefore, GAMCO is one of the most diversified hedge funds, offering exposure to some of the biggest and fastest-growing market segments. Over the years, Gabelli has relied on a value investment strategy that focuses on stocks trading below their fair value. In return, he looks for catalysts that could cause the stock's value to rise substantially. Some of the catalysts the fund manager often looks for include the sale or spinoff of a business. Mergers, industry consolidation, or regulatory changes also act as tailwinds in driving share value. The value investment strategy has been the catalyst behind GAMCO investors achieving impressive annualized returns of 16.3% since inception. READ ALSO: Billionaire David Tepper's 10 Stock Picks with Huge Upside Potential and Billionaire Jim Simons' RenTech's 10 Small-Cap Stock Picks with Huge Upside Potential. Likewise, GAMCO Investors is well positioned to capitalize on emerging opportunities in the overall stock market, pulling back. Valuation levels have pulled back significantly in the aftermath of the stock market coming under pressure amid the US tariff-fueled trade war. The announcement of President Donald Trump's 'Liberation Day' tariffs caused a significant upheaval in the stock and bond markets, resulting in the loss of trillions of dollars in investor wealth. While the administration temporarily suspended most reciprocal tariffs on April 9 for a period of 90 days, the looming threat of a global trade war poses risks to economic expansion. It is likely to shift capital flows in the equity markets. Both policymakers and market players are also wary of the potential for a financial 'mishap,' stemming from erratic movements in the U.S. Treasury market. Federal Reserve Chair Jerome Powell warned that current tariffs are 'significantly larger than expected,' adding that 'the same is likely to be true of the economic effects, which will include higher inflation and slower growth.'
