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Activist Bill Ackman's First Quarter Top Positions

May 16, 2014 | About:
Monica Wolfe

Monica Wolfe

127 followers

Bill Ackman (Trades, Portfolio), the controversial activist leader of Pershing Square Capital Management, released his first quarter holdings yesterday. These holdings highlighted nine stocks, with four of these being new buys over the quarter. His portfolio is valued at $8.4 billion.

The following five companies are the five stocks Ackman holds the most of his portfolio in. The guru’s top five positions make up for approximately 88% of his total portfolio.

Canadian Pacific Railway (CP)

The guru’s largest holding is in Canadian Pacific Railway where he maintains 17,159,888 shares of the company’s stock. This position makes up for 30.8% of his total portfolio and 9.80% of the company’s shares outstanding.

Ackman did not alter his position during the past quarter. The guru has seen average gains on shares bought of 170% since the third quarter of 2011.

Ackman’s historical holding history:

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Canadian Pacific Railway provides freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States.

Canadian Pacific Railway’s historical revenue and net income:

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The analysis on Canadian Pacific Railway reports that the company’s dividend yield is close to a 10-year low and its price is close to a 10-year high. It also notes that the company has a high Piotroski F-Score and the company has shown predictable revenue and net income.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Canadian Pacific Railway has a market cap of $28.07 billion. Its shares are currently trading at around $160.28 with a P/E ratio of 33.80, a P/S ratio of 5.00 and a P/B ratio of 4.30. The company had an annual average earnings growth of 1.30% over the past ten years.

GuruFocus rated the company the business predictability rank of 3-star.

Air Products & Chemicals (APD)

Bill Ackman (Trades, Portfolio)’s second largest holding is in Air Products & Chemicals where he maintains 20,549,076 shares of the company’s stock. This position represents 29.2% of Ackman’s total portfolio as well as 9.80% of the company’s shares outstanding.

Ackman did not change his position in Air Products over the past quarter. Since the guru bought into the company in the second quarter of 2013, he has seen an average gain of 21% on shares bought.

Ackman’s historical holding history:

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Air Products & Chemicals is a supplier of hydrogen and helium. It also provides semiconductor materials, refinery hydrogen, natural gas liquefaction, and advanced coatings and adhesives.

Air Products & Chemicals’ historical revenue and net income:

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The analysis on APD reports that the company’s revenue per share has slowed down over the past year, its dividend yield is near a 2-year low, and its price is near a 10-year high. The analysis also notes that the company’s operating margin is expanding and that the company has issued $1.5 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Air Products and Chemicals has a market cap of $25.15 billion. Its shares are currently trading at around $118.50 with a P/E ratio of 25.30 and a P/S ratio of 2.40. The company had an annual average earnings growth of 4.60% over the past ten years.

GuruFocus rated Air Products & Chemicals the business predictability rank of 2-star.

Burger King Worldwide (BKW)

Ackman’s third largest holding is in Burger King where he holds on to 38,387,865 shares of the company’s stock. This position makes up for 12.2% of his total portfolio as well as 10.93% of the company’s shares outstanding.

The guru last changed his position in the fourth quarter of 2013, and since then the price per share is trading up approximately 20.9%.

Ackman’s holding history as of the close of the first quarter:

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Burger King franchises and operates fast food hamburger restaurants, principally under the Burger King brand. It generates revenues from two sources namely retail sales at company-owned restaurants; and franchise and property revenues.

Burger King’s historical revenue and net income:

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The analysis on Burger King reports that the company’s revenue per share has been in decline over the past five years, its Piotroski F-Score is high and its dividend yield is near a 2-year high. The analysis also notes that the company’s Price, P/B Ratio and P/S Ratio are all trading at near 2-year lows.

Burger King Worldwide has a market cap of $8.82 billion. Its shares are currently trading at around $25.07 with a P/E ratio of 34.30 and a P/S ratio of 8.60. The dividend yield of the company’s stock is currently at 1.10%.

Beam (BEAM)

The guru’s fourth largest position comes from Beam, where he owns 11,668,545 shares of the company’s stock. This holding represents 11.6% of his total assets managed as well as 7.21% of the company’s shares outstanding.

During the first quarter, Ackman reduced his position -43.95% by selling 9,150,000 shares of Beam stock. He sold these shares in the quarterly price range of $66.05 to $84.00, with an estimated average quarterly price of $81.25 per share. Since then the price per share is trading up about 2.7%.

Ackman’s historical holding history as of the close of the first quarter:

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Beam is a premium spirits company that makes and sells branded distilled spirits products in major markets. The company's three reportable segments are the geographic regions of North America, EMEA and APSA.

Beam’s historical revenue and net income:

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The analysis on Beam reports that the company’s revenue per share has been in decline over the past five years, its operating margin is expanding and its price is trading at near a 10-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Beam has a market cap of $13.8 billion. Its shares are currently trading at around $83.47 with a P/E ratio of 37.30 and a P/S ratio of 5.34. The dividend yield is currently at 1.08%.

Platform Specialty Products (PAH)

Ackman’s fifth largest holding is in Platform Specialty Products where he maintains 33,333,330 shares of the company’s stock. This position makes up for 7.6% of his total portfolio.

The guru made his first buy into the company during the past quarter. He bought theses 33 million shares in the first quarter price range of $13.50 to $21.82, with an estimated average quarterly price of $17.69 per share. Since then the price per share is up approximately 25.5%.

Ackman’s historical holdings:

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Platform Acquisition Holdings PLC is a cash shell company looking to undertake an acquisition of a target company or business that is expected to have an enterprise value of between $750 million and $2.5 billion, though a target company or business with a smaller or larger enterprise value may be considered.

Platform Acquisition Holdings’ historical revenue and net income:

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Platform Acquisition Holdings has a market cap of $2.72 billion. Its shares are currently trading at around $22.35 with a P/S ratio of 3.60.

Check out Ackman’s complete first quarter portfolio here.

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