Jim Grant, Editor/Founder of Grant’s Interest Rate Observer, spoke with Bloomberg Television anchor Stephanie Ruhle from the Sohn Investment Conference in New York today.
Grant talked about why he’s long Gazprom when many are shying away, saying,
“the beginning, middle and end of the bull case on Gazprom is that good things happen to cheap stocks. Gazprom is by acclimation the world’s worst company managed by the worst kleptocrats ever assembled on one continent. So – and – and Jay Carney, the president’s own press secretary, advised us all as a nation, regardless of individual suitability, to go short this stuff, Russia. So how can one not at least investigate the contrary side of that proclamation.”
Grant on Ackman’s Valeant partnership bid for Allergan:
“Now something great conceivably could happen with respect to the proposed Valeant-Allergan merger, which I say may not happen. Maybe they’re going to cure cancer…. Maybe they’re going to cure ugliness. All the people they haven’t fired yet in the lab – in the white lab coats, they’re going to cure ugliness in the next five minutes. Okay, fine. That’s great for the stockholders….We at Grant’s have issues with Valeant’s acquisition accounting and with its lack of GAAP-sanctioned earnings power and the like. But with respect to the credit markets, with respect to Valeant debt holders, what’s in it for you?”
source: Bloomberg Television