Here’s Why to Invest in Convenience Stores

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June 13 (Bloomberg) -- AIG Non-Executive Chairman Steve Miller and Gabelli Asset Management CEO Mario Gabelli discuss investing in convenience stores on Bloomberg Television's “Bloomberg Surveillance.” (Source: Bloomberg)

Why are they the winners now?

It is a structural dynamic.

I will take you to your corner store.

I will take you to the locations and the united dates.

Not only did they send you gas.

You have pizza, coffee, cigarettes.

The notion of these companies starting off as financial engineering -- some names, murphy oil, hess just sold.

Hess just sold their gas stations for 16 times ebitda.

This underscores the convenience thrust.

A crucial part -- it is a very interesting acquirer.

Those are some of the names that i want to own.

You have never seen money this cheap.

How long does this fund continue?

There's no question that the currency is important.

The buyer's stocks have been going up.

When company x buys company y, you look at the valuations.

It is not like they are selling at 11 times.

These companies are eight times and nine times ebitda.

That is a cap.

I want to rip up the script on hill scheier.

Did tysons overpay for hillshire?

There is no question.

When one wants a picasso, there are since you -- so few of them.

The price of tickets are up and cost is down.

You have a currency.

Within that framework, no.

Let's go back to the auto business.

Are they undervalued?

I think the auto business has a very bright future.

Cars are getting more and more efficient.

Oil prices are not going to have the impact as a decade or two ago.

We still have a huge global competition.

There are chinese companies coming up.

There'll be a lot of pressure.

This goes back to governor carney last night at mansion house.

Is janet yellen the grease that is making this process go?

In the near-term, what she is doing asterisk.

It has provided funding.

It is not a sustainable economic model.

At some point, it will come to the end.

Interest rates will go back to normal levels and they will be in pain.

70 million cars sold in the united states.

80 million in the world.

You cannot just look at the united states.

Their 50 million cars in the world.

250 million in the united states.

It is a global marketplace.

You have a global marketplace, and who gets the benefit?

Is their great opportunity in emerging markets?

He is preaching his book.

Mario gabelli is not preaching his book.

If it is not jenny allen, investors can also think mark carney or mario draghi.

This is good news for the multinationals.

For as long as the party continues.

The party is going to be over at some point.

If you look at the u.k., it is set to end abrupt way.

-- abruptly.

The turn must night, we will talk about later as well.

What is going to happen will happen fast and europe will not expect it.

You have to have your fire

This text has been automatically generated. It may not be 100% accurate.


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