On October 16, 2014, Rev. Father Emmanuel Lemelson, Founder and President of The Lantern Foundation and Chief Investment Officer of Lemelson Capital Management, appeared on Benzinga's Pre-Market Prep show to discuss the recent sell-off in the market and long and short positions held by Lemelson Capital's top-performing Amvona Fund.
In the interview, Fr. Emmanuel commented on the firm's current long position in shares of World Wrestling Entertainment (NYSE: WWE), Kulicke and Soffa Industries (NASDAQ: KLIC) and American Eagle Outfitters (NYSE: AEO) and the firm's short position in shares of Ligand Pharmaceuticals (NASDAQ: LGND). He also addressed the recent correction in equity markets, the existing and potential impact of the ongoing Ebola virus on the markets, and Lemelson Capital's long position in Apple (NASDAQ: AAPL) including investor Carl Icahn's recent letter to Apple CEO Tim Cook.
Among Lemelson's comments on the Benzinga show:
On Lemelson Capital's short position in Ligand Pharmaceuticals, Lemelson strongly criticized Ligand's use of non-GAAP accounting methodologies and the cost of Ligand's recent debt offering "It's about 18 ½ percent, the cost of their debt," Lemelson said. Prior Lemelson Capital reports on Ligand have concluded that Ligand shares have "no intrinsic value".
On Lemelson Capital's long position in Apple, Lemelson said he was very optimistic about Apple stock's future. "Revenues have increased and it appears profits are certainly going to increase," he said.
On Kulicke & Soffa, Lemelson said he maintained great confidence about the stock's future, especially in light of the company's recent decision to heed Lemelson Capital's recommendation that it launch a share repurchase program with its large cash holdings. "If you have to mortgage your grandmother's house to buy these shares, do it," he added.
On the market generally, Lemelson said the recent market sell-off "was not totally unexpected…this pull back is a good thing, it's healthy," he said.
To watch the interview click here.