Steve Mandel (Trades, Portfolio) is the founder of Lone Pine Capital, a long/short equity money firm, which he started in 1997. Prior to founding LPC, Mandel was senior managing director and consumer analyst at Tiger Management Corporation (1990-1997), mass-market retailing analyst at Goldman Sachs (1984-1990) and senior consultant at Mars and Company (1982-1984).
Lone Pine Capital invests in public equity markets across the globe, and utilizes long-short strategy. The firm uses fundamental analysis and bottom up stock picking to build the portfolio. Mandel uses both value and growth methodologies, and does not hold many stocks for very long.
According to GuruFocus Undervalued Stocks of Lone Pine Capital’s Portfolio, these are the cheaper stocks:
1) Apple Inc. (AAPL)
Mandel started to buy AAPL in Q3 of the year 2010. At present time he is holding 2,184,122 shares at an average price of $109/share, with an average positive return of 17%.
At current price, based on DCF model, Apple fair value is $211.23, and these days the stock is trading with a margin of safety of 40%, at a P/E ratio of 17.10 and P/B ratio of 6.00. The current price is hitting the all-time highs.
The Peter Lynch Fair Value is set to $185.80 with a margin of safety of 45%.
Over the last 5 years the company Revenue grew by 30.10% and EPS growth rate is 29.10%. Apple has top ratios of the Consumer Electronics industry (36.70% of ROE, 19.37% of ROA and 332% of ROC) and strong Financial situation, rated 8/10.
Main Gurus holding AAPL are Carl Icahn (0.91% of Outstanding Shares), Jeremy Grantham (0.45% of Outstanding Shares) and Ken Fisher (0.18% of Outstanding Shares)
2) Humana Inc (HUM)
Mandel started to buy HUM on Q3 of 2014. At present time he is holding 1,911,536 shares at an average price of $127.17 with a positive return of 22%.
At current price, based on DCF model, Humana's fair value is $207.58, and these days the stock is trading with a margin of safety of 26%, at a P/E ratio of 24.60 and P/B ratio of 2.33.
Over the last 5 years the company Revenue grew by 9.30% and EPS growth rate is 6.20%. This is thanks to positive returns (11% of ROE and 5% of ROA) and strong Financial situation, rated 8/10.
Other Gurus holding Humana Inc. are Vanguard Health Care Fund (3.42% of Outstanding Shares), Hotchkis & Wiley (1.54% of Outstanding Shares) and Larry Robbins (3.27% of Outstanding Shares)
3) Priceline Group Inc. (PCLN)
Mandel started to buy PCLN on Q2 of 2010. At present time he is holding 1,398,233 shares at an average price of $743 with a positive return of 51%.
At current price, based on DCF model, PCLN fair value is $1261.43, and these days the stock is trading with a margin of safety of 11%, with a P/E ratio of 25.20 and P/B ratio of 6.80.
Over the last 5 years the company Revenue grew by 29%, Book Value by 46% and EPS growth rate is 43%. PCLN has top ratios of the Global Leisure industry (31.67% of ROE, 20.07% of ROA and 1928% of ROC) and strong Financial situation, rated 9/10.
Other Gurus holding Priceline Group Inc. are Frank Sands (2.59% of Outstanding Shares) and Chris Shumway (1.39% of Outstanding Shares)
