Eric Cinnamond on small cap value, inflation, tariffs, deficits, Mag 7, and AI cap ex

Eric Cinnamond on small cap value, inflation, tariffs, deficits, Mag 7, and AI cap ex | S07 E27 – The Acquirers Podcast

Market views

Bullish

ENERGY— Eric's firm recently invested in Cord Energy, an E&P company in the Bakken, valuing its reserves at $15 per barrel and noting its 5%+ dividend yield.
SMALLCAP— Eric favors small cap stocks, particularly in cyclical industries like transportation, that are already experiencing a recession. He specifically mentions owning Heartland Express.
HC— Eric's firm recently invested in a healthcare device company for the first time in about a decade, following the sector's underperformance relative to the S&P 500.

Bearish

LARGECAP— Eric highlights the significant outperformance of large caps compared to small caps over the past 4 years, suggesting this trend may not continue indefinitely.
COST— Eric warns about the potential overvaluation of high-quality stocks like Costco, suggesting it could lose half its value due to its high P/E ratio.

Not investment advice.