Free 7-day Trial
All Articles and Columns »

David Tepper Buys 6 New Stocks

Holly LaFon

Holly LaFon

211 followers
David Tepper, recognized for his outsized returns at his $3 billion hedge fund Appaloosa Management, bought six stocks in the second quarter: Whirlpool Corp. (WHR), Fusion-IO (FIO), MGM Resorts International (MGM), Lam Research Corp. (LRCX), Celanese Corp. (CE) and JetBlue Airways (JBLU).

Whirlpool Corp. (WHR)

Tepper bought 703,180 of his largest new buy, Whirlpool, at an average price of $63 in the second quarter of 2012. The stock has since gained 13%.

Whirlpool Corp. manufactures and markets a full line of major appliances and related products, primarily for home use. Whirlpool Corp. has a market cap of $5.55 billion; its shares were traded at around $71.84 with a P/E ratio of 12.8 and P/S ratio of 0.3. The dividend yield of Whirlpool Corp. stocks is 2.8%.

Fusion-IO (FIO)

Tepper bought 268,075 Fusion-IO shares at an average price of $23 in the second quarter of 2012. The stock has since gained 14%.

Fusion-IO is engaged in the design, development and retail of storage memory platform that helps data decentralization. Fusion-IO has a market cap of $2.51 billion; its shares were traded at around $26.34 with a P/E ratio of 335.7 and P/S ratio of 12.7.

MGM Resorts International (MGM)

Tepper bought 2,002,293 shares of MGM Resorts International at an average price of $12 in the second quarter of 2012. The stock has since dropped 15%.

MGM Resorts International, formerly known as MGM Mirage, is a global hospitality company, operating a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. MGM Resorts International has a market cap of $4.73 billion; its shares were traded at around $10.21 with and P/S ratio of 0.6.

Lam Research Corp. (LRCX)

Tepper purchased 435,200 shares of Lam Research Corp. at an average price of $40 in the second quarter of 2012. He had previously opened a position at an average price of $40 in the third quarter of 2010 and reduced the position mostly at a profit over subsequent quarters, until he exited the position entirely in the fourth quarter of 2011.

Lam Research Corporation designs, manufactures, markets and services semiconductor processing equipment used in the fabrication of integrated circuits. Lam Research Corporation has a market cap of $4.27 billion; its shares were traded at around $34.88 with a P/E ratio of 17.2 and P/S ratio of 1.6.

Celanese Corp. (CE)

Tepper bought 150,000 shares of Celanese at an average price of $42 in the second quarter 2012. The stock price has since dropped 5%.

Celanese is an integrated global producer of value-added industrial chemicals. Celanese Corporation has a market cap of $6.36 billion; its shares were traded at around $40.55 with a P/E ratio of 10.1 and P/S ratio of 0.9. The dividend yield of Celanese Corporation stocks is 0.7%.

JetBlue Airways Corp. (JBLU)

Tepper bought 817,374 at an average price of $5 in the second quarter of 2012. The stock has since advanced 5%.

JetBlue Airways is a low-fare, low-cost passenger airline, which provides high-quality customer service primarily on point-to-point routes and is based in New York's John F. JetBlue Airways has a market cap of $1.42 billion; its shares were traded at around $5.085 with a P/E ratio of 11.4 and P/S ratio of 0.3. JetBlue Airways had an annual average earnings growth of 6.6% over the past 10 years.

Tepper sold out of four positions in the second quarter:

CVR Energy (CVI)

Tepper sold out his entire position of 3,209,911 shares of CVR Energy at an average price of $28, after reducing the position since the third quarter of 2011. He opened the position at an average price of $18.50 in the first quarter of 2011.

Headquartered in Sugar Land, Texas, CVR Energy has a market cap of $2.54 billion; its shares were traded at around $29.66 with a P/E ratio of 5.6 and P/S ratio of 0.5. CVR Energy had an annual average earnings growth of 11.4% over the past 5 years.

Financial Select Sector SPDR (ETF) (XLF)

Tepper sold out his entire position of 4,216,200 shares of Financial Select Sector at an average price of $15. He bought the position in the fourth quarter of 2011 and first quarter of 2012 at average prices of $13 and $15, respectively.

Financial Select Sector SPDR (ETF) has a market cap of $6.43 billion; its shares were traded at around $15. The dividend yield of Financial Select Sector SPDR (ETF) stocks is 1.7%.

iShares FTSE NAREIT Ind/Off Ind Fd (ETF) (FINO)

Tepper sold out his entire position in this ETF in the second quarter.

SPDR S&P 500 ETF (SPY)

Tepper sold out his entire position of 154,079 shares at an average price of $135 in the second quarter of 2012. He opened the position in the first quarter of 2012 at an average price of $135.

Standard and Poor's Depository Receipts trust is involved in the financial services industry. SPDR S&P 500 ETF has a market cap of $107.42 billion; its shares were traded at around $140.99. The dividend yield of SPDR S&P 500 ETF stocks is 1.9%.

See David Tepper’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of David Tepper.


Rating: 3.3/5 (11 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide