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Alex Roepers Loves Owens-Illinois, Eastman Chemical and Harman

Alex Roepers of Atlantic Investment Management pitched Owens-Illinois Inc (NYSE:OI), Eastman Chemical Company (NYSE:EMN) and Harman International Industries Inc (NYSE:HAR) in his presentation at the conference.

Mr. Roepers, who has a Master of Business Administration degree from Harvard Business School, said Owens-Illinois Inc (NYSE:OI) has renowned customers, including beer company Heineken and French beverage company Pernod Ricard. The company is at par with peers in terms of technology, and currently has no foreign competitors to challenge its market dominance. Roepers admitted that the liquor glass industry has faced some pressure due to the influx of plastic glasses and cans, but that this factor is currently not a threat to the Ohio-based Fortune 500 company. Owens-Illinois does 70% of its sales outside of the U.S., and a strong dollar negatively affected its earnings recently. At the end of the second quarter, Robert Rodriguez and Steven Romick’s First Pacific Advisors had 10.30 million shares of Owens-Illinois Inc (NYSE:OI) in its portfolio on June 30.

Eastman Chemical Company (NYSE:EMN) is another favorite of Alex Roepers. The investor thinks that 75% of Eastman’s business now deals in specialty chemicals which have strong margins and growth potential. Roepers believes the chemical company can earn $8 to $9 per share in earnings and said that the company could also be a buyout candidate soon, as it recently paid off its debt and is now focusing on repurchasing some of its shares. From within our database, 39 hedge funds had about $804.6 million worth of Eastman Chemical Company (NYSE:EMN) positions as of the end of the June quarter.

Alex Roepers said that 12 top car companies in the world are customers of Harman International Industries Inc (NYSE:HAR), the Connecticut-based company which makes entertainment systems and connected products for automobiles. Roepers said the company posted strong results recently, and has a firm grip in high-end markets. The stock is down by over 16% year-to-date and trades at a reasonable P/E of 15.65. John W. Rogers’ Ariel Investments owns over 1.26 million shares of Harman International Industries Inc (NYSE:HAR) as of June 30.

Disclosure: None