Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

The following list may be interesting to investors who like to follow the smart money.

All of the stocks below are owned by the likes of Buffett, Soros, Paulson, Icahn etc. (based on 13-F filings at the end of 2010). Additionally, all of these companies have high levels of cash, as measured by the trailing 12-month (TTM) levered free cash flows, expressed as a percentage of each company's market cap.

Levered free cash flow is the free cash flow available to the company after paying interest on said company’s debt. It is a measure of the cash flow that is truly available to the company.

Considering the large amounts of cash held by these companies relative to market cap, do you think these names are undervalued? Famous investors seem to agree -- so use this list as a starting point for your own analysis.

Investor ownership sourced from EDGAR, levered FCF sourced from Yahoo Finance, short float and performance data sourced from Finviz.

[Click to enlarge]



List sorted by TTM levered FCF as a percentage of market cap.

1. NRG Energy, Inc. (NYSE:NRG): Electric Utilities Industry. Market cap of $5.15B. According to 13-F filings at the end of 2010, Carl Icahn owns shares of the company. Levered FCF is 25.63% of market cap (TTM Levered FCF at $1.33B and market cap at $5.15B). Short float at 3.91%, which implies a short ratio of 3.48 days. The stock has lost 10.17% over the last year.

2. GlaxoSmithKline plc (NYSE:GSK): Drug Manufacturer. Market cap of $100.11B. According to 13-F filings at the end of 2010, Warren Buffett owns shares of the company. Levered FCF is 13.55% of market cap (TTM Levered FCF at $13.55B and market cap at $100.11B). Short float at 0.13%, which implies a short ratio of 1.43 days. The stock has gained 6.32% over the last year.

3. Target Corp. (NYSE:TGT): Discount Stores Industry. Market cap of $37.63B. According to 13-F filings at the end of 2010, Bill Ackman owns shares of the company. Levered FCF is 11.95% of market cap (TTM Levered FCF at $4.39B and market cap at $37.63B). Short float at 1.04%, which implies a short ratio of 1.17 days. The stock has gained 6.60% over the last year.

4. Enzon Pharmaceuticals Inc. (NASDAQ:ENZN): Biotechnology Industry. Market cap of $667.41M. According to 13-F filings at the end of 2010, Carl Icahn owns shares of the company. Levered FCF is 11.86% of market cap (TTM Levered FCF at $79.36M and market cap at $667.41M). Short float at 11.02%, which implies a short ratio of 14.97 days. The stock has gained 18.58% over the last year.

5. Transocean Ltd. (NYSE:RIG): Oil & Gas Drilling & Exploration Industry. Market cap of $26.52B. According to 13-F filings at the end of 2010, John Paulson owns shares of the company. Levered FCF is 11.74% of market cap (TTM Levered FCF at $3.12B and market cap at $26.52B). Short float at 4.52%, which implies a short ratio of 2.36 days. The stock has lost 2.33% over the last year.

6. The Washington Post Company (WPO): Newspapers Industry. Market cap of $3.78B. According to 13-F filings at the end of 2010, Warren Buffett owns shares of the company. Levered FCF is 11.46% of market cap (TTM Levered FCF at $434.20M and market cap at $3.78B). Short float at 11.91%, which implies a short ratio of 18.7 days. The stock has gained 9.87% over the last year.

7. Best Buy Co. Inc. (NYSE:BBY): Electronics Stores Industry. Market cap of $12.95B. According to 13-F filings at the end of 2010, George Soros owns shares of the company. Levered FCF is 9.40% of market cap (TTM Levered FCF at $1.24B and market cap at $12.95B). Short float at 4.46%, which implies a short ratio of 1.77 days. The stock has lost 8.19% over the last year.

8. The Hain Celestial Group, Inc. (NASDAQ:HAIN): Processed & Packaged Goods Industry. Market cap of $1.33B. According to 13-F filings at the end of 2010, Carl Icahn owns shares of the company. Levered FCF is 7.96% of market cap (TTM Levered FCF at $105.86M and market cap at $1.33B). Short float at 6.39%, which implies a short ratio of 7.69 days. The stock has gained 97.82% over the last year.

9. Biogen Idec Inc. (NASDAQ:BIIB): Biotechnology Industry. Market cap of $16.30B. According to 13-F filings at the end of 2010, Carl Icahn owns shares of the company. Levered FCF is 7.73% of market cap (TTM Levered FCF at $1.25B and market cap at $16.30B). Short float at 3.09%, which implies a short ratio of 4.18 days. The stock has gained 19.50% over the last year.

10. Coca-Cola Enterprises Inc. (NYSE:CCE): Soft Drinks Industry. Market cap of $9.14B. According to 13-F filings at the end of 2010, George Soros owns shares of the company. Levered FCF is 7.73% of market cap (TTM Levered FCF at $690.62M and market cap at $9.14B). Short float at 5.12%, which implies a short ratio of 2.43 days. The stock has gained 102.33% over the last year.

11. Forest Laboratories Inc. (NYSE:FRX): Drug Manufacturer. Market cap of $9.80B. According to 13-F filings at the end of 2010, Carl Icahn owns shares of the company. Levered FCF is 7.71% of market cap (TTM Levered FCF at $756.75M and market cap at $9.80B). Short float at 8.19%, which implies a short ratio of 10.9 days. The stock has gained 16.73% over the last year.

12. Whirlpool Corp. (NYSE:WHR): Appliances Industry. Market cap of $6.33B. According to 13-F filings at the end of 2010, John Paulson owns shares of the company. Levered FCF is 6.94% of market cap (TTM Levered FCF at $439.88M and market cap at $6.33B). Short float at 8.94%, which implies a short ratio of 4.18 days. The stock has gained 0.43% over the last year.

13. Monsanto Co. (NYSE:MON): Agricultural Chemicals Industry. Market cap of $39.80B. According to 13-F filings at the end of 2010, George Soros owns shares of the company. Levered FCF is 6.81% of market cap (TTM Levered FCF at $2.70B and market cap at $39.80B). Short float at 1.21%, which implies a short ratio of 1.26 days. The stock has lost 2.75% over the last year.

14. Comcast Corporation (NASDAQ:CMCSA): CATV Systems Industry. Market cap of $70.37B. According to 13-F filings at the end of 2010, George Soros and John Paulson own shares of the company. Levered FCF is 6.66% of market cap (TTM Levered FCF at $4.76B and market cap at $70.37B). Short float at 1.78%, which implies a short ratio of 3.22 days. The stock has gained 60.84% over the last year.

15. Medtronic, Inc. (NYSE:MDT): Medical Appliances & Equipment Industry. Market cap of $43.23B. According to 13-F filings at the end of 2010, John Paulson owns shares of the company. Levered FCF is 6.63% of market cap (TTM Levered FCF at $2.93B and market cap at $43.23B). Short float at 1.01%, which implies a short ratio of 1.52 days. The stock has lost 5.65% over the last year.

16. Del Monte Foods Co. (DLM): Processed & Packaged Goods Industry. Market cap of $3.70B. According to 13-F filings at the end of 2010, John Paulson owns shares of the company. Levered FCF is 6.57% of market cap (TTM Levered FCF at $243.11M and market cap at $3.70B). Short float at 1.88%, which implies a short ratio of 0.56 days. The stock has gained 56.91% over the last year.

17. Wal-Mart Stores Inc. (NYSE:WMT): Discount, Variety Stores Industry. Market cap of $195.02B. According to 13-F filings at the end of 2010, Warren Buffett and George Soros own shares of the company. Levered FCF is 6.44% of market cap (TTM Levered FCF at $12.59B and market cap at $195.02B). Short float at 1.61%, which implies a short ratio of 2.54 days. The stock has gained 4.70% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Whale Watch: 17 Cash-Rich Companies Owned by Famous Investors