Kenneth Heebner of Capital Growth Management and Robert Doll of BlackRock share their reactions to the Federal Reserve's economic assessment and its decision to leave rates unchanged.
Heebner could not conceal excitement in this interview. For him, all stars and planets are lined up for the stock market to rally: double dip concerns are behind us, Fed has been very accommodating with QE2 and today with continued interest rate, US Senator has passed the bill extending Bush tax cut…
In particular, he sees the auto industry picking up the pent-up demand as the economy recovers. GuruFocus tracks Heebner and here are the stocks he bought the most in 3Q10:
No. 1: FreeportMcMoRan Copper & Gold Inc. (NYSE:FCX), Buy: 5.65% of the portfolio - Total: 3,951,000 Shares
Freeport-McMoRan is engaged in mineral exploration and development, mining and milling of copper, gold, and silver in Indonesia, and the smelting and refining of copper concentrates in Spain and Indonesia. Freeportmcmoran Copper & Gold Inc. has a market cap of $54.07 billion; its shares were traded at around $114.82 with a P/E ratio of 13.9 and P/S ratio of 3.6. The dividend yield of Freeportmcmoran Copper & Gold Inc. stocks is 1%.
No. 2: priceline.com Inc. (NASDAQ:PCLN), Buy: 3.61% of the portfolio - Total: 618,300 Shares
Priceline.com Incorporated has pioneered a unique e-commerce pricing system known as a `demand collection system` that enables consumers to use the Internet to save money on a wide range of products and services while enabling sellers to generate incremental revenue. Priceline.com Inc. has a market cap of $19.65 billion; its shares were traded at around $400.24 with a P/E ratio of 36.4 and P/S ratio of 8.5. Priceline.com Inc. had an annual average earning growth of 62.8% over the past 5 years.
No. 3: Southwest Airlines Co. (NYSE:LUV), Buy: 3.5% of the portfolio - Total: 15,978,600 Shares
Southwest Airlines is a major domestic airline that provides primarily shorthaul, high-frequency, point-to-point, low-fare service. Southwest Airlines Co. has a market cap of $9.62 billion; its shares were traded at around $12.88 with a P/E ratio of 19 and P/S ratio of 0.9. The dividend yield of Southwest Airlines Co. stocks is 0.1%. Southwest Airlines Co. had an annual average earning growth of 1.4% over the past 10 years.
No. 4: BorgWarner Inc. (NYSE:BWA), Buy: 2.91% of the portfolio - Total: 3,300,000 Shares
BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. Borgwarner Inc. has a market cap of $7.67 billion; its shares were traded at around $67.45 with a P/E ratio of 26.3 and P/S ratio of 1.9.
No. 5: Teck Resources Limited (NYSE:TCK), Buy: 2.88% of the portfolio - Total: 4,170,000 Shares
Teck Resources Limited, formerly Teck Cominco Limited, is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. Teck Cominco Ltd. has a market cap of $33.35 billion; its shares were traded at around $57.47 with a P/E ratio of 26.7 and P/S ratio of 4.6. The dividend yield of Teck Cominco Ltd. stocks is 0.7%.
Check out Heebner’s stock portfolio and trading activities by clicking on Ken Heebner