Investing Expert Whitney Tilson's Recent Buys and Adds

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 |  Includes: BRK.B, DELL, HHC, MSFT, OUTR, STX, TWO, WDC
by: David Alton Clark

Whitney Tilson is an author, investor and businessman who also writes for financial publications. Tilson is a disciple of the Graham-Dodd -Buffett-Munger school of value investing, and was one of the authors of "Poor Charlie's Almanack," considered by many to be the definitive book on Charlie Munger. Among his other interests is teaching a course on financial statement analysis and business valuation for The Dickie Group.

Tilson spent much of his childhood in Tanzania, and Nicaragua. (His parents met and married while in the Peace Corps). He studied at and graduated magna cum laude from Harvard College with a bachelor's degree in Government. He then went on to gain an MBA with High Distinction from Harvard Business School, where he was elected a Baker Scholar (top 5% of class). He launched his investment career in 1999.

He co-manages T2 Partners LLC with Glenn H. Tongue. This comprises three value-oriented private investment partnerships and the Tilson Mutual Funds, made up of two value-based mutual funds, Tilson Focus Fund and Tilson Dividend Fund. Since inception in early 1999, his T2 accredited fund is up 170% while the S&P 500 (NYSEARCA:SPY) is only up 34.1%.

Why reinvent the wheel of success? Analyzing this Wall Street wizard’s thoughts, portfolio and current activities may provide insightful investment ideas. Additionally, Tilson’s preferences may be on sale due to unprecedented market conditions. Please review the following analysis of Whitney Tilson’s top eight recent buys and adds for nuggets of knowledge to improve your portfolio’s performance.

Below is a table with detailed summaries regarding each current Tilson buy or add followed by a brief review of each company, a summary of current analysts' estimates and up/downgrade activity followed by a chart of the company's key statistics.

Top Eight Most Recent Tilson Buys and Adds Detailed Statistics


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Company Reviews

Coinstar, Inc. (CSTR), through its subsidiaries, provides automated retail solutions primarily in the United States, Canada, Puerto Rico, the United Kingdom, and Ireland.

On Friday, June 17, video game rentals launched at more than 21,000 Redbox locations nationwide. Featuring video game titles across three platforms, PLAYSTATION 3, Nintendo Wii and Xbox 360, Redbox will rent games for $2 a day, DVDs for as low as $1 a day and Blu-ray Discs for $1.50 a day. Redbox is the convenient one-stop shop for entertainment.

The company is trading below analysts' estimates. CSTR has a median price target of $64 by 15 brokers and a high target of $75.25. The last up/downgrade activity was on Apr 5, 2011, when Northland Securities upgraded the company from Market Perform to Outperform.

Dell Inc. (NASDAQ:DELL) provides integrated technology solutions in the information technology industry worldwide.

Dell’s strategy to develop its capability as an efficient technology solutions provider, grow faster than the industry in strategic areas and shift the company’s mix to higher-value products and solutions was outlined recently at the company’s annual stockholders meeting. (Read more.)

The company is trading below analysts' estimates. DELL has a median price target of $19 by 30 brokers and a high target of $25. The last up/downgrade activity was on May 12, when Auriga U.S.A initiated coverage on the company with a Buy rating.

Microsoft (NASDAQ:MSFT) develops, manufactures, licenses, and supports a range of software products and services for various computing devices worldwide. Microsoft was founded in 1975 and is headquartered in Redmond, Washington.

Microsoft recently announced the worldwide availability of Office 365, Microsoft’s next generation productivity service. Office 365 is the culmination of more than 20 years of experience delivering world-class productivity solutions to people and businesses of all sizes. It brings together Office, SharePoint, Exchange and Lync in an always-up-to-date cloud service.

The company is trading below analysts' estimates. MSFT has a median price target of $33 by 25 brokers and a high target of $38. The last up/downgrade activity was on Feb. 17, when Collins Stewart initiated coverage on the company with a Buy rating.

Two Harbors Investment Corp. (NYSE:TWO) operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities and related investments.

Two Harbors Investment Corp. recently announced it has priced a public offering of 42,000,000 shares of its common stock at $10.15 per share, for total gross proceeds (before underwriting discount and commissions and estimated expenses) of approximately $426.3 million. The Company has granted the underwriters an option for 30 days to purchase up to an additional 6,300,000 shares of the Company’s common stock to cover over-allotments, if any. The offering is expected to close today (July 20) or soon thereafter.

The company has no current price estimates available on Yahoo Finance. The last up/downgrade activity was on Nov 5, 2010, when Barclays Capital initiated on the company with an Overweight rating.

Western Digital Corporation (NASDAQ:WDC) primarily engages in the design, development, manufacture, and sale of hard drives worldwide.

Western Digital recently announced it will be offering a small-office storage server product and has signed an OEM software agreement with Microsoft Corporation to include the Windows Storage Server 2008 R2 Essentials operating system software. WD will combine its leading storage technologies with Microsoft's operating system to deliver a complete storage solution for the small business market. The result will be a product that simplifies connection, protection and collaboration online for small businesses and the information technology services organizations that support them.

The company is trading below analysts' estimates. WDC has a median price target of $45 by 21 brokers and a high target of $60. The last up/downgrade activity was on May 12, 2011, when Auriga U.S.A initiated coverage on the company with a Buy rating.

The Howard Hughes Corporation (NYSE:HHC) is a real estate investment and development company, engaging in managing, developing, and leasing commercial, residential, and mixed-use real estate.

The Howard Hughes Corporation recently announced it has entered into a definitive agreement to acquire from Morgan Stanley Real Estate Investing its 57.5% legal interest, which equates to a 47.5% economic interest based on the parties' financial arrangement, in The Woodlands Master Planned Community located in Houston, Texas, for $117.5 million. The purchase consideration consists of $20 million in cash payable at closing and a $97.5 million non-interest bearing promissory note due December 1, 2011.

The company is trading below analysts' estimates. HHC has a median price target of $75 by 1 broker and a high target of $75. No Upgrades & Downgrades are available for HHC on Yahoo Finance.

Seagate Technology Public Limited Company (NASDAQ:STX) designs, manufactures, markets, and sells hard disk drives for the enterprise, client compute, and client non-compute market applications in the United States and internationally.

Seagate Technology plc recently announced the pricing of its previously announced offering of $600 million aggregate principal amount of 7.000% senior notes due 2021. The Notes were priced at 100% of the aggregate principal amount and will bear interest at a rate of 7.000% per annum. The Notes will be issued by Seagate HDD Cayman, an indirect wholly owned subsidiary of Seagate Technology plc, and guaranteed by Seagate Technology plc.

The company is trading below analysts' estimates. STX has a median price target of $21 by 21 brokers and a high target of $30. The last up/downgrade activity was on May 12, 2011, when Auriga U.S.A initiated coverage on the company with a Buy rating.

Berkshire Hathaway, Inc. (NYSE:BRK.B) is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business.

Berkshire Hathaway Inc. recently announced the closing of the merger of Wesco Financial Corporation into a subsidiary of Berkshire Hathaway Inc.

The company has no current price estimates available on Yahoo Finance. No Upgrades & Downgrades are available for HHC on Yahoo Finance.

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