Investors 'Freaking Out' Means Europe Is a 'Buy'
Grupo Prisa, meanwhile, is navigating through an operational and financial restructuring, but Marcus said investors are focusing too much on the company's newspaper business.
"When people see the newspaper business, they're nervous. Of course it's a dying business," he said. "But they're also the largest pay TV company in Spain. People are not getting rid of their cable. It's one of the last things they'll get rid of, even in a recessionary environment."
Marcus sees the biggest opportunity with Grupo Prisa in its education business, which gives investors enormous exposure to booming Latin American countries like Brazil and Chile. "It's a cheap undervalued company in Europe and I'm getting huge exposure to this emerging environment," he said. "So rather than me going into emerging markets paying huge prices, I can buy distressed Europe and get that for a lot less."
Of course, Europe is not without its risks. In the past week, investors have seen the market surge and swoon on a number of different headlines out of the region. They included contradictory reports that Greek Prime Minister George Papandreou would step down (he eventually did) and that Italian Prime Minister Silvio Berlusconi would step aside (which he later denied). Marcus tells investors that Europe is not a case where they should be betting the house on a quick recovery."I don't know if we're at the bottom here, but surely we're closer the bottom than we've been. It's been so bad in the European markets," he said. "We like to call it a nibbler's market. You take a small bite today. If tomorrow things get worse, you have more resources to nibble tomorrow. I don't know when it actually will end, but I know we're getting valuations we have not seen in so long. You have to take advantage of it." -- Written by Robert Holmes in Boston.
>To contact the writer of this article, click here: Robert Holmes.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV