In our continued study of “smart money” investing gurus, we decided to take a look at Chase Coleman’s stock picks. Coleman of Tiger Global Management manages a portfolio of 30 stocks, valued at $3.72 billion as of 12/31/2010. Of the positions, 17.8% are technology companies, 8.1% financials, 59% consumer services, 7% consumer goods, 5.1% industrials, and 3% classified as other. We computed the position sizes relative to Coleman’s total portfolio and provide some commentary on some our favorite Coleman picks. As always, use the names below as a starting point for you own due diligence.
Company | Ticker | Current Price | Total Shares Owned | Percentage of Portfolio |
Apple Inc. | 350.96 | 1132504 | 9.83 | |
VIACOM INC. | VIA.B | 46.27 | 7447000 | 7.94 |
DIRECTV | 46.33 | 6325400 | 6.8 | |
Liberty Global Inc. | 42.19 | 6665000 | 6.34 | |
Liberty Media Corp. Capital Common Series A | LCAPA | 74.83 | 3571538 | 6.01 |
MercadoLibre Inc. | 78.64 | 3273552 | 5.87 | |
CABLEVISION SYSTEMS CORP. | 34.32 | 6307344 | 5.74 | |
priceline.com Inc. | 491.69 | 456500 | 4.91 | |
Amazon.com Inc. | 174.62 | 1000000 | 4.84 | |
MASTERCARD Inc. | 251.71 | 703000 | 4.24 | |
Discovery Communications Inc. Series C | 34 | 4011499 | 3.96 | |
VISA INC. | 72.2 | 2050000 | 3.88 | |
LIVE NATION ENTERTAINMENT INC. | 9.99 | 11950393 | 3.67 | |
Electronic Arts Inc. | ERTS | 19.66 | 8000000 | 3.53 |
MakeMyTrip Ltd. | 27.81 | 4129760 | 3 | |
XEROX Corp. | 10.65 | 9493000 | 2.94 | |
Electronic Arts Inc. | ERTS | 19.66 | 6100000 | 2.69 |
TRANSDIGM GROUP Inc. | 82.31 | 1353500 | 2.62 | |
LONGTOP FINANCIAL TECHNOLOGIES Ltd. | 31.58 | 2586953 | 2.52 | |
GENPACT Ltd. | 14.29 | 4198790 | 1.72 | |
Ctrip.com International Ltd. | 40.28 | 1316000 | 1.43 | |
Baidu Inc. ADS | 136 | 551000 | 1.43 | |
Liberty Global Inc. Series C | 40.11 | 1111800 | 1.01 | |
COMPANIA CERVECERIAS UNI. | 56.22 | 489396 | 0.79 | |
IAC/InterActiveCorp | 30.73 | 947000 | 0.73 | |
Sears Holdings Corp. | 80.25 | 250000 | 0.5 | |
DUOYUAN GLOBAL WATER INC. | DGW | 6.49 | 1170000 | 0.4 |
CommScope Inc. | 31.48 | 354541 | 0.3 | |
PowerOne Inc. | 8.69 | 873000 | 0.24 | |
Rubicon Technology Inc. | 26.18 | 200000 | 0.11 |
Apple: We've come around on Apple and are willing to admit we were wrong with our $280 per share valuation you can read about here. While we still view market darlings F5 Networks (FFIV) and Amazon as overvalued, we have updated our discounted cash flow model to factor in a larger share of the tablet computer market for Apple. We anticipate worldwide sales of 45-50 million, up from our previous 30 million figure. We use a 10% discount rate for the company and peg fair value at $450 per share.
Ctrip made 3.06 billion RMB ($466.8 million) in revenues in 2010, which was an increase of 44.4%, after +33.6% in 2009. Profits came in at 1.05 billion RMB ($160.15 million) or +57.7% in 2010, after climbing 48.38% in 2009. The respective EBT margins were 38.8% and 36.07%. EPS grew by 49.2% to 6.97 RMB ($1.06), which implies a P/E of 36.8. For the first quarter of 2011, the company expects to continue the net revenue growth year-on-year at a rate of approximately 20%.
In Q4 2010, Ctrip made an investment in Dining Secretary China, which is a leading provider of free online and offline restaurant reservations for diners. Dining Secretary operates in many cities in China, serving diners and restaurants with a call center. Through this alliance, the two companies will be able to leverage their high-quality service experience, computerized operating platform, and expertise in the restaurant reservation business to provide more comprehensive services to our customers.
Ctrip.com is the a leading travel service provider for hotel accommodations, airline tickets, packaged tours and corporate travel management in China.
Mastercard: The credit card company has a market cap of $31.90B. MA has announced that it will waive processing fees on any American donations to a number of relief organizations for Japan. If you’re looking for some other ideas in the credit card space, we actually like American Express (AXP), as we wrote about here.
Viacom: Entertainment company Viacom has a market cap of $29.54B. On March 7, the CEO said that he sees a possibility of increasing the company’s dividend, currently yielding 1.20%, on July 1, and hopefully every year moving forward.
Visa made $8.06 billion in revenues in 2010, which was an increase of 16.70%, after increasing 10.35% in 2009. Profits came in at $2.96 billion in 2010, which was an increase of 26.05%, after jumping by 192.66% in 2009. The profit margin was 79.58% in 2010 and 77.77% in 2009. EPS grew by 29.35% in 2010. Also, for the trailing 12 months, EPS was $4.21, which implies a P/E of 17.7.
Compared to Q1 2010, in Q1 2011, revenues grew by 14.1% to $2.23 billion, profits grew by 16% to $884 million, and EPS rose from $1.03 to $1.23.
On March 1, Visa finished acquiring PlaySpan, a privately-held company whose payments platform handles transactions for digital goods in online games, digital media and social networks around the world. This move complements Visa’s 2010 CyberSource acquisition, and extends the company’s capabilities into one of the fastest-growing segments of eCommerce: Digital and mobile commerce.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
