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Latest Picks from Steve Mandel

December 06, 2011 | About:
Federico Flom

Federico Flom

6 followers
Steve Mandel started Lone Pine Capital in 1997 after being a managing director and analyst at Tiger Management. Mandel manages $12 billion and has a double-digit annual return since the fund's inception.

Last year his funds generated impressive returns.

His strategy is based on looking for good companies with good management and stock valuations below intrinsic value.

His working team is made up of 12 investment professionals searching for ideas across the globe in seven industry groups, namely, consumer, financial, health care, telecommunications and media, technology, business services and industrials.

Steve Mandel is doing a great job. Lone Pine Capital is superb and is always picking good companies in the market,” said John Schawrtz, a member of Mandel's working team.

As it has been said before, Mandel is always analyzing good companies. Now, let's look at his latest picks.

NetEase (NTES):

This company operates one of China's most popular Internet portals and is a leading online game developer and operator. Revenue is represented by hourly game-play fees which account for 90% of the total sales.

NetEase has a sound balance sheet. By the end of March, the company had more than $1.6 billion in cash and what is even more spectacular, it did not report debt.

Furthermore, the company has a strong cash position and is widely known for its ability to convert more than 50% of sales into free cash flows in the last several years.

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Steve Mandel INITIATED a new position in the stock

Wyndham Worldwide (WYN):

The largest global operator of timeshares and hotels is organized into three divisions: 1) Wyndham Vacation Ownership (51% of revenue), in charge of developing, selling, and managing timeshare properties; 2) Wyndham Exchange & Rentals (31% of revenue), in charge of timeshare exchange services and vacation rental marketing services; and 3) Wyndham Hotel Group (18% of revenue) that focuses on hotel franchising.

This year seemed to be a great year for the company. Its EBITDA/interest coverage improved 6.6 times vis-à-vis the 5.4 times in 2010. Furthermore, the company has increased its dividend by more than three-fold since 2008.

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Steve Mandel ADDED to the position in the last quarter.

News Corporation (NWSA):

NWSA is a media conglomerate with a wide range of assets: filmed entertainment; television, including the Fox broadcast network and 27 local TV stations, cable network programming; direct-broadcast satellite television (Sky Italia), publishing which includes marketing and newspapers in Australia, the United Kingdom, and the U.S.

As of June 2011, the company had about $13.5 billion in debt and $12 billion in cash.

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Steve Mandel ADDED to the position in the last quarter.

Las Vegas Sands (LVS):

It is considered the largest operator of fully integrated resorts featuring casino, hotel, entertainment, food and beverage, retail and convention center operations across the world.

Some of its resorts include: the Venetian Macao, Sands Macao, and Four Seasons Hotel Macao in China, the Marina Bay Sands resort in Singapore, and the Venetian Las Vegas and Sands Bethlehem casinos in the U.S.

Eighty-five percent of its revenue comes from Asia, and the company's casino operations generate about 75%.

The opening Marina Bay Sands in Macau and the recovery in Vegas Strip market have improved past year results. In addition, its EBITDA/interest coverage ratio improved from 2.5 times to 6.1 times. Strong results are expected for this year.

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Steve Mandel INITIATED a new position last quarter

Express Scripts (ESRX):

ESRX is one of the largest pharmacy benefit managers in the U.S. It administers around 750 million adjusted prescriptions through its order pharmacy and network of retail outlets.

Although it has incurred in debt and issued stock to finance the purchase of NextRx, it has been able to quickly repay it and repurchase the stock.

The company is expected to use its substantial cash flows to rebuild the balance sheet in fairly short order.

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Steve Mandel ADDED to the position last quarter

These picks show that Steve Mandel's strategy can be translated into success.

Rating: 4.1/5 (8 votes)

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