Legendary Wall Street investing titan Leon Cooperman thinks there’s “too much bullishness” in the stock market and that, “Everyone’s on the same side of the boat – I think you have to worry about that.”
He also told Forbes he believes, “Now is the time to be conservative – just look at Tesla stock, Bitcoin, options trading volumes and the frenzy in IPO activity – these are all signs of speculative excess.”
Having said all of that, Cooperman has five favourite current investments. One of them is this Canadian resource stock. Who knew?
by Sergei Khlebnikov, Forbes
Largo Resources (TSX:LGO;OTC:LGORF). Market Cap: $865 million
One of Cooperman’s more under-the-radar stock picks, Toronto-based Largo Resources is one of the world’s largest producers of vanadium, an alloy used to strengthen steel.
The stock sells at a low valuation against its earnings potential and has no debt, Cooperman says. It hasn’t been profitable but trades at 11 times a forward price to earnings.
He argues that the alloy will be in high demand moving forward, especially thanks to record steel production in China.
The billionaire investor thinks that while somewhat “speculative,” this investment has little risk with high potential return.