), the flagship of cable-TV mogul John Malone's empire, hasn't done much in this year's market rally, but some pros think it is poised for a strong rebound. The stock has been caught between 8 and 12. Recently, it dipped to 10, following Liberty's $7.8 billion purchase of the 57% of home-shopping network QVC that it didn't already own. But some pros are taking advantage of the drop to buy more shares: Hilary Kramer, president of A&G Capital, is betting that the stock is close to its bottom and should be climbing soon. "Not many realize that Liberty is way undervalued, based on the array of worldwide assets it owns or has a stake in."
It owns such channels as Discovery and Starz, and a slice of News Corp. It also holds stakes in Time Warner and some Net outfits, such as Barry Diller's InterActiveCorp. Kramer puts the value of the assets at $15 a share. Her 12-month target for the stock is 18. Niraj Gupta of Smith Barney, who owns shares, says Liberty, which trades at a 30% discount to its net asset value, is "attractive for long-term investors." Smith Barney's parent, Citigroup, has done banking for Liberty.Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them. By Gene G. Marcial