7 Stocks That Have Been Traded By Chase Colman

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 |  Includes: BIDU, CCE, GOOG, MELI, NFLX, PCLN, YNDX
by: Efsinvestment

Chase Colman, the founder of Tiger Global Management, is one of the youngest faces in Wall Street. Coleman worked for Julian Robertson between 1997 and 2000. His hedge fund, Tiger Global, manages equity investments in the US, as well as global markets, including China, India, Southeast Asia, Eastern Europe, and Latin America.

Tiger Global also has offices in Beijing, China and Mumbai, India. Tiger Cup portfolio is estimated to have yielded an annualized return of 15.5% since 2000. Chase Colman not only invests in real estate, telecommunications, energy, media, and retail sectors, but also in fixed income markets.

Coleman invests significant amounts in start-up companies and technology stocks. Fortunately for his investors, Coleman has a miraculous touch -- many of his purchases turn into profitable bets.

According to latest filings of Tiger Global Management submitted to Edgar Online, Chase Colman had a technology-weighted portfolio of stocks. Tiger Global has $5.31 billion invested in US equities. Technology stocks cover approximately 48% of the portfolio, followed by services [38%] and financials [8%]. Chase Colman increased positions in 22 stocks and reduced positions in 15 stocks. I have examined his 5 big buys and 2 big sells from a fundamental perspective, adding my O-Metrix Grading System where possible:

Company Name

Ticker

Shares Held

% Change

% of Portfolio

O-Metrix Score*

Yandex

YNDX

54.06 million

NEW!!!

30.91%

3.01

Baidu

BIDU

1 million

59.24%

2.64%

4.99

Google

GOOG

88,000

NEW!!!

0.87%

6.12

Coca Cola Enterprises

CCE

1.906 million

NEW!!!

0.96%

4.72

Netflix

NFLX

1.03 million

23.80%

4.13%

3.71

Mercadolibre

MELI

0

Sold Out

0

4.61

Priceline

PCLN

322,634

-33.31%

3.21%

4.54

Click to enlarge

*Data obtained from Finviz/Morningstar and is current as of September 2.

Yandex had a pretty successful IPO in the last quarter. The company raised $1.3 billion with an initial price of $25. The stock surged up by almost 60% after opening up 40% higher. At the first trading day stock went up to $39. Yandex is the largest search engine in Russia.

Yandex is also involved in several other related businesses such as browser extension, email services, photo servers, map services, and traffic congestion monitoring. We can think of Yandex as the Google of Russia and ex-USSR states. As of September 2nd, the stock is trading at $30.38. Thus, the first-day bubble is almost gone.

Still, Yandex is trading with a P/E ratio of 64.64 and a forward P/E ratio of 50.63 Analysts estimate 33.92% EPS growth for the next 5 years. Deutsche Bank (NYSE:DB) has a target price of $42, implying almost 40% upside potential.

I am not sure whether Colman acquired the shares during the IPO or after the IPO. Given his investment record in startup companies, it is more likely that he invested before the IPO. The stock has an O-Metrix score of 3.01. If you have an eye on the stock, then you should watch Chase Colman’s next move. Chase Colman owns 54.06 million shares and he is the largest shareholder with a total share ownership of 41.84%.

Baidu was deeply affected from the recent sell-off, but the stock bounced back to pre-August level. While it lost 2.41% in the last quarter, it returned 45.50% since last year. Tiger Global increased its holdings by 59.24% and invested 2.64% of its portfolio on Baidu.

Analysts have a mean target price of $184.33, implying almost 31% upside potential. However, as of the September 2nd close, the stock is trading with a high trailing P/E ratio of 63.84 and a forward P/E ratio of 32.51. PEG ratio of 1.31 is well above the norm of 1. Based on 48.60% EPS growth estimate, Baidu has an O-Metrix score of 4.99. My FED+ fair value range of Baidu is $140 -$145 per share.

Google, the search engine titan, lost 9.12% in the last month and 0.73% in the last quarter. Tiger Global increased its holdings by 182% and invested 1.28% of its portfolio on Google. The stock returned 11.60% in a year.

Analysts have a mean target price of $726, implying about 38% upside potential. As of the September 2nd close, the stock is trading with a trailing P/E ratio of 18.93 and a low forward P/E ratio of 12.54. Current ratio of 5.96 and debt/equity ratio of 0.08 are among the best in the industry. PEG ratio of 0.99 is just below the norm of 1. Based on 19.20% EPS growth estimate, Google has an O-Metrix score of 6.12. I think Google is a much better choice than Baidu. My FED+ fair value range for Google is $646 - $796 per share.

Coca Cola Enterprises is the marketer, producer, and distributor of Coca-Cola products. The company is among the largest distributors in Europe. According to the company website, Coca-Cola Company does not own stock in Coca-Cola enterprises. Realizing the potential in the company, Tiger Global initiated a new purchase of 1.906 million stocks and invested 0.96% of its portfolio on Coca Cola Enterprises.

The stock returned 8.47% since January. Analysts have a mean target price of $32.96, implying about 23% upside potential. As of the September 2nd close, the stock is trading with a low trailing P/E ratio of 13.79 and a lower forward P/E ratio of 11.26. Dividend yield is 1.93%. Based on 9.85% EPS growth estimate, Coca Cola Enterprises has an O-Metrix score of 4.72.

Netflix lost 13.29% in the last month and 18.84% in the last quarter. Tiger Global increased its holdings by 23.80% and invested 4.13% of its portfolio on Netflix. Analysts have a mean target price of $264, implying about 24% upside potential.

I think Netflix is among the most expensive stocks in the market. As of the September 2nd close, the stock is trading with a trailing P/E ratio of 53.95 and a low forward P/E ratio of 30.62. Price to Cash Flow ratio of 58.75 is a red flag. Based on 31.38% EPS growth estimate, Netflix International has an O-Metrix score of 3.71. My FED+ Fair value range for Netflix is $167 - $173.

Mercadolibre headquartered in Buenos Aires is one of the largest internet-based commercial service providers in the Latin America. The stock returned almost 600% to those investors who purchased it at its bottom in 2009.

Tiger Global’s sell off was timely, since the stock lost 17.40% in the last quarter. Nevertheless, Mercadolibre still has some potential left. It is a highly profitable with a gross margin of 77.31% and net profit margin of 25.53%. Annualized EPS growth estimate for the next 5 years is 35%, which is conservative given the 130% EPS growth in the last 5 years. It also pays a dividend of 0.47%. O-Metrix score is 4.61.

Priceline returned 5% in a quarter, and year-to-date return is 32.20%. Those who acquired stocks at their bottom in 2009 made 500%. It has been an outperformer, returning 68.29% in the last year. Nevertheless Tiger Global reduced its Priceline holdings by 33.31% in the last quarter.

Connecticut-based Priceline has a gross margin of 65.71% and an operating margin of 27.56%. Its trailing P/E ratio is 37.38 and forward P/E ratio is 17.98. Analysts have a mean target price of $621, implying 18% upside potential. Based on 25% EPS growth estimate, Priceline has an O-Metrix score of 4.54.

You can download O-Metrix Calculator here.

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