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Stocks That Paul Tudor Jones Keeps Buying in the Last Quarters

January 05, 2012 | About:
Mara Kohn

Mara Kohn

4 followers
“The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.” — Paul Tudor Jones, president and founder of The Tudor Group.

Mr. Jones usually upholds a single trade idea till he makes a fundamental change. Other times, he keeps cutting his position. Then when his trading is really bad, he trades the smallest amount.

He always gives advice to investors: “I'm always thinking about losing money as opposed to making money. Don't focus on making money, focus on protecting what you have."

Some of his top buys are:

Comcast Corp A (CMCSA):

Comcast is the largest operator in the cable industry but also offers Internet services. Comcast operates in different cities across the U.S., namely Philadelphia, Chicago, San Francisco, Seattle and Boston.

In terms of performance, its combination with NBC Universal has brought a 51%-owned new venture. It is considered that there is no company that can duplicate Comcast's ability to offer multiple services over one connection within its territories. Moreover, customers are really loyal.

Speaking about future expectations, the combination with NBCU has cleared the horizon for Comcast as regards the future of television in terms of content creation and distribution. It is sure that this combination will expand the 10% that the firm captures of telecom services.

This overview should let Comcast profit from new offerings and technologies that provide value for both companies.

Devon Energy Corp (DVN):

Devon Energy is one of the largest independent E&P companies in North America. The firm's asset base includes conventional and unconventional oil and natural gas properties throughout North America as well as a sizable network of midstream assets. Its portfolio is further made up of near-term and longer-dated projects. At the end of 2010, Devon held several reserves. Indeed natural gas accounted for 68% of production and 60% of reserves.

Devon took an important decision that proved to be right: the unburdening of international and offshore assets.

Given this decision, the firm is now able to better focus on its highest-return opportunities. Furthermore, it will be less exposed to risks arising from project cycles and will have a better visibility of its production profile.

All its assets and projects support the advancement of production and reserve growth.

Corning Inc. (GLW):

Corning is the leading designer and manufacturer of glass and ceramic substrates found in liquid crystal displays, fiber-optic cables, automobiles, and laboratory products. The company is made up of five divisions: display technologies, telecommunications, environmental technologies, specialty materials and life sciences.

Corning's balance sheet is in good shape, with $6.4 billion of cash and short-term investments, $4.4 billion in long-term investments in joint ventures, and $2.3 billion in long-term debt.

In terms of future expectations, management expects that capital spending will largely drop in 2013 while the company concludes its new manufacturing capacity expansion and upgrading projects.

Oracle Corporation (ORCL):

Oracle sells a wide range of enterprise IT solutions, including databases, middleware, applications and hardware. Software license updates and product support segments are the most profitable of its operations. Indeed they represent nearly 42% of total revenue.

The company's general strategy involves an active acquisition program, which is paramount for business performance. In terms of quarterly results, Oracle has been spending millions on acquisitions since 2005. But that is not all. The firm is considered a top provider in database software. It is estimated that Oracle represents 45% of the database software market, followed by IBM and Microsoft, which have 21% each.

Financially speaking, Oracle is a stable company with good free cash flow averaging 31%. Management is considered to be solid and holds vast experience in identifying, buying and integrating smaller software companies. Its success can be evidenced by the growth in revenues and operating profits.

SanDisk Corp (SNDK):

SanDisk is a global leader in NAND flash memory cards. Its products are widely used in electronic devices such as digital cameras, mobile phones and USB flash drives.

SNDK also develops flash memory standards and 10% of its sales are related to patented technologies, which bring important royalty revenue.

SanDisk is the holder of key NAND patents for both raw chips and memory cards.

The NAND technology surpasses competitors in terms of storage density. This involves lower costs and higher margins. In terms of future expectations, solid-state drives are a strong long-term growth opportunity for SanDisk.

Rating: 2.8/5 (10 votes)

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