Here are some of the most recent Real-Time Picks from the investing gurus:
TW Telecom Inc (TWTC)
Market Cap: 5.65 billion, P/E: 186.10
Business Predictability: 4.5/5, Financial Strength: 6/10, Profitability & Growth: 7/10
Mason Hawkins of Southern Asset Management added 40.3 percent to his TW Telecom Inc (TWTC) holding at the average price of $40.71 on 07/10/2014, as reported in the latest 13G filings by Mason Hawkins (Trades, Portfolio). He owns 15,201,344 shares representing 10.9 percent of the shares outstanding. TW Telecom specializes in business Ethernet, data networking, converged, internet protocol (IP) based virtual private network (IP VPN), internet access, and voice, as well as network security services.
On June 13, 2014, Level 3 Communications (LVLT) announced that it will acquire TW Telecom for $10 per share in cash and 0.7 shares of Level 3. Level 3 is trading at $45.40 today, July 1, 2014, currently valuing the deal at $41.78. TW Telecom is currently trading at $41.31, a 1.12 percent discount to the value of the buyout. Buying TW Telecom here would be the equivalent of buying Level 3 at a 1 percent discount, nothing to get too excited about.
DineEquity Inc (DIN)
Market Cap: 1.49 billion, P/E: 20.10
Business Predictability: 1/5, Financial Strength: 5/10, Profitability & Growth: 5/10
Mason Hawkins (Trades, Portfolio) also reduced his DineEquity Inc (DIN) holding by 83.8 percent at the average price of $79.27 on 07/10/2014, as reported in the latest 13G filings by Mason Hawkins (Trades, Portfolio). He owns 213,000 shares representing 1.2 percent of the shares outstanding. DineEquity owns, franchises, and operates the full-service restaurant chains of Applebee’s and International House of Pancakes (IHOP). The company has a high debt-to-equity ratio of 4.32 and a low interest coverage ratio of 2.13. Revenue has been falling at an annual rate of 21.12 percent over the past 5 years.
Vitacost.com Inc (VITC)
Market Cap: 271.75 million, P/E: N/A
Business Predictability: Not Rated, Financial Strength: 8/10, Profitability & Growth: 5/10
Mario Gabelli of GAMCO Investors added a new holding of 1,839,481 shares of Vitacost.com Inc (VITC) at the average price of $7.98 on 07/03/2014, as reported in the latest 13D filings by Mario Gabelli (Trades, Portfolio). His new position represents 5.4 percent of the shares outstanding. Vitacost.com operates as an online retailer of health and wellness products primarily in North America. On July 2, 2014, Kroger (KR) announced a deal to buy Vitacost.com for $8.00 per share. The deal is expected to close this quarter. The stock is currently trading for $7.99, so there is practically no opportunity in buying the stock now.
Rosetta Resources Inc (ROSE)
Market Cap: 3.2 billion, P/E: 17.40
Business Predictability: 1/5, Financial Strength: 7/10, Profitability & Growth: 8/10
RS Investment Management reduced its Rosetta Resources Inc (ROSE) holding by 70.99 percent at the average price of $53.93 on 07/10/2014, as reported in the latest 13G filings by RS Investment Management (Trades, Portfolio). The firm owns 2,116,827 shares, representing 3.4 percent of the shares outstanding. Rosetta Resources is an independent oil and gas company engaged in the exploration, development and exploitation of onshore energy resources in the United States. It is a lead producer in the Eagle Ford Shale in South Texas. The company also holds a large position in the Permian basin in West Texas. The company has been growing revenue at a rapid pace of 27.43 percent per year. It has a high debt-to-equity ratio of 1.13, but enough operating income to cover its interest payments 9.63 times. The negative about the company is that earnings dropped 43.6 percent over the last quarter due to higher operating costs.
eHealth Inc (EHTH)
Market Cap: 673.07 million, P/E: N/A
Business Predictability: 1/5, Financial Strength: 9/10, Profitability & Growth: 7/10
RS Investment Management (Trades, Portfolio) also added 63.59 percent to its eHealth Inc (EHTH) holding at the average price of $35.85 on 07/10/2014, as reported in the latest 13G filings by RS Investment Management (Trades, Portfolio). The firm owns 2,084,349 shares representing 11.1 percent of the shares outstanding. eHealth provides online health insurance services for individuals, families, and small businesses in the United States. The company is financially strong with $98 million in cash and no long-term debt. Earnings have turned negative over the past two quarters, but revenue still continues to increase.
NovaCopper Inc (NCQ)
Market Cap: 67.46 million, P/E: N/A
Business Predictability: Not Rated, Financial Strength: 9/10, Profitability & Growth: 2/10
John Paulson of Paulson & Company added 46.69 percent to his NovaCopper Inc (NCQ) holding at the average price of $1.05 on 07/07/2014, as reported in the latest insider filings by John Paulson (Trades, Portfolio). He owns 8,673,579 shares representing 16.2 percent of the shares outstanding. NovaCopper owns land in the Ambler Mining District of Alaska with the intent of mining the copper and other metals that are likely in the ground. It is currently in the exploratory phase only and has no revenues. The company has no long-term debt, but the cash has been rapidly decreasing over the last twelve months. It will likely need to raise more cash soon. Seth Klarman’s Baupost Group is also a large shareholder with 8.31 percent of the shares outstanding. This one is a purely speculative play since there is no revenue. Fortunately, we can let John Paulson (Trades, Portfolio) and Seth Klarman (Trades, Portfolio) do the legwork for us. If investing in NovaCopper, it would be a good idea to follow them to see how they are managing their positions.
For the latest stock trades by Gurus, go to: Real Time Picks.
