Shares of Berry Plastics(BERY) - Get Report rose 13% in 2015, and the company should stay hot in the coming year due to its new Versalite line of cups, said Ari Sass, portfolio manager for M.D. Sass Funds.
"We think Dunkin' Donuts(DNKN) - Get Report is going to roll that out in 2016 nationally, 7-Eleven nationally," said Sass. "And we think this is a huge opportunity for them, potentially $100 million of EBITDA to Berry Plastics."
Sass added that the company is also very cheap relative to its free cash flow generation, and will also benefit greatly from lower oil prices reducing its input costs.
He is also positive on Gaming & Leisure Properties(GLPI) - Get Report , down 25% in the second half of 2015, saying the casino REIT is being overly punished as a result of its purchase of Pinnacle Entertainment's(PNK) - Get Report real estate assets. Sass said traders are concerned about a large issuance of new shares hitting the market in the wake of that deal.
"They have the potential to acquire MGM's real estate assets and other gaming properties, not the operations," said Sass. "In the meantime it pays an 8% dividend yield and we think earnings will grow about 10% this year. And we don't have to worry about currency or emerging market risk because it's a domestic story."
Shares of Time Warner (TWX) dropped 22% in 2015, yet Sass believes the selloff is overdone. He said the bears are paying too much attention to cord-cutters and not enough to the company's vast content generating capabilities.
"HBO is a beneficiary of over-the-top platforms like Netflix(NFLX) - Get Report . They can be a Netflix," said Sass. "Warner Brothers is a pure content producer much like Lions Gate (LGF) , which trades at a much bigger multiple."