NEW YORK (TheStreet) -aWilliam Ackman, founder of fund Pershing Square and a major investor in JCPenny who recently added to stakes in Citigroup , Family
Dollar and Kraft unveiled his new investment focus:
Fortune Brands .
The investment was an idea created by Wharton grad analyst Ali Namvar, who Ackman presented at the Value Investing Congress on Tuesday to a crowd expecting to hear from Ackman. "We think it's a tremendous stock," said Namvar.
Bill Ackman
In September, Fortune Brands spun off it's Home & Security business, which is the target of Pershing Square's interest. The investment is not a full force bet on a housing recovery, Namvar said, but added that with a full housing recovery the company would earn $5 billion, have a EBITDA multiple three times today's levels -- and a stock of $27 a share.
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