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Whitney Tilson's Top Five Q2 Stocks

August 04, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Whitney Tilson is the founder and managing partner of T2 Partners and the Tilson Mutual Funds. Along with managing these funds he also authored several investing books as well as numerous articles for "Forbes" and similar money magazines. The guru is an author and a disciple of the Graham-Dodd-Buffett-Munger school of value investing.

During the second quarter the guru and his fund purchased one new stock, bringing his total portfolio holdings to 24 stocks valued at $67 million. The following five companies represent Tilson’s top five second quarter holdings.

Howard Hughes Corp (HHC)

Tilson’s largest position is in Howard Hughes where the guru maintains 48,496 shares. His holdings in the company represent 11.4% of his total portfolio and 0.12% of the company’s shares outstanding.

Over the duration of the second quarter Tilson reduced his holdings -16.7% by selling a total of 9,722 shares. He sold these shares in the quarterly price range of $137.84 to $158.11, with an average quarterly price of $146.06. Since then the price per share has increased approximately 0.5%.

Tilson’s historical holding history:

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Howard Hughes is engaged in the development of master planned communities and other strategic real estate development opportunities across the U.S. The company operates its business in two lines of business: Master Planned Communities and Strategic Development.

Howard Hughes’ historical revenue and net income:

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The analysis on Howard Hughes reports that the company’s Piotroski F-Score is low, it has issued $799.254 million of debt over the past three years, and its price is sitting near a 5-year high.

Check out Howard Hughes in comparison to its competitors on the New Analysis Page!

Howard Hughes has a market cap of $5.82 billion. Its shares are currently trading at around $146.83 with a P/S ratio of 12.10 and a P/B ratio of 2.70.

Berkshire Hathaway (BRK.B)

Tilson’s second largest position is in Berkshire Hathaway where he holds on to 37,662 shares of the company’s stock. His holdings represent 7.1% of his total portfolio.

During the past quarter Tilson cut his holdings a slight -1.49% by selling 569 shares of Berkshire Hathaway. He sold these shares in the quarterly price range of $121.70 to $129.06, with an estimated average quarterly price of $126.57. Since then the price per share has increased approximately 0.9%.

Whitney Tilson’s historical holding history:

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Berkshire Hathaway is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

Berkshire Hathaway’s historical revenue and net income:

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The analysis on Berkshire Hathaway reports that the company’s price is near a 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

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

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Berkshire Hathaway has a market cap of $300.34 billion. Its shares are currently trading at around $128.47 with a P/E ratio of 15.60, a P/S ratio of 1.60 and a P/B ratio of 1.30. Berkshire Hathaway had an annual average earnings growth of 9.20% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.

Avis Budget Group (CAR)

The guru’s third largest holding is in Avis Budget Group where he holds on to 76,193 shares of the company’s stock. This position makes up for 6.8% of his total portfolio as well as 0.07% of the company’s shares outstanding.

Over the past quarter Tilson cut his holdings a minor -1.93% by selling 1,498 shares of the company’s stock. He sold these shares in the quarterly price range of $47.50 to $60.51, with an estimated average quarterly price of $54.74 per share. Since then the price per share is trading up about 4.7%.

Whitney Tilson (Trades, Portfolio)’s historical holding history:

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Avis Budget operates two of the most recognized brands in the global vehicle rental industry through Avis and Budget. It categorizes its operations in three operating segments: domestic car rental, international car rental, and truck rental.

Avis Budget Group’s historical revenue and net income:

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The analysis on Avis Budget reports that the company has issued $1.2 billion of debt over the past three years, its price is near a 10-year high and its asset growth is currently faster than its revenue growth.

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

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Avis Budget Group has a market cap of $6.04 billion. Its shares are currently trading at around $57.35 with a P/E ratio of 109.00 and a P/S ratio of 0.78. The company had an annual average earnings growth of 7% over the past five years.

Platform Specialty Products (PAH)

Tilson’s position in Platform Specialty Products is the third largest in his portfolio. The guru holds on to 155,915 shares of the company’s stock, representing 6.5% of his total portfolio as well as 0.13% of the company’s shares outstanding. Over the past quarter the guru cut his holdings -31.44% by selling 71,485 shares. He sold these shares near the estimated average quarterly price of $23.17 per share and since then the price per share is trading up about 9%.

The guru bought into the company during the first quarter, and since that buy the price per share is trading up approximately 43%.

Tilson’s historical holding history of PAH:

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Platform Specialty 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 Specialty’s historical revenue and net income:

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Platform Specialty has a market cap of $3.07 billion. Its shares are currently trading at around $25.25 with a P/S ratio of 4.20 and a P/B ratio of 1.10.

American International Group (AIG)

Tilson’s fifth largest holding is in American International Group where he maintains 76,242 shares. His position in the company represents 6.2% of his total portfolio as well as 0.01% of the company’s shares outstanding.

During the second quarter Tilson made an increase in his holdings of 3.46%. The guru added a total of 2,552 shares of the company’s stock in the quarterly price range of $49.40 to $55.72, with an estimated average quarterly price of $52.92. Since then the price per share has dropped approximately -1.4%.

Tilson’s historical holding history:

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American International Group is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad.

AIG’s historical revenue and net income:

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The analysis on AIG reports that the company’s dividend yield is near a 10-year low, its revenue has been in decline over the past five years and its P/S ratio is nearing a 5-year high.

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

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American International Group has a market cap of $75.57 billion. Its shares are currently trading at around $52.24 with a P/E ratio of 9.10, a P/S ratio of 1.10 and a P/B ratio of 0.70.

Check out Whitney Tilson and T2 Partners’ fourth quarter holdings here.

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