Today we took a look at the holdings of guru investor Paul Tudor Jones of the Tudor Group. Here are five stocks he bought in the most recent quarter:
APPLE Inc. (AAPL) designs and creates iPod and iTunes, Mac laptop and desktop computers, the OS X operating system and the revolutionary I Phone and I Pad. The company’s stock is currently trading at $374.05 at the day close on Sep 4th 2011. A change of $6.98 has been observed reflecting a negative growth rate of 1.83%. The P/E ratio is 14.80 where as the EPS is 25.28. The P/E ratio reflects the price paid for a share relative to the annual net income or profit earned whereas the EPS reflects the profit allocated to each outstanding share of common stock after the dividends on preferred stock has been paid out. Apple is currently not paying dividends to its shareholders. As far as we can tell, Apple is accumulating huge chunks of cash piling up from product and service sales representing a security blanket for Apple.
However APPLE Inc.’s counterpart Research in Motion Limited (RIMM) has experienced a similar decline in its stock price after falling from a high $31.85 on the previous closing to a lower price of $30.12 indicating a negative 5.43% decrease. The decline in the growth rates indicates that RIMM’s stock has fallen considerably comparative to its competitors and AAPL's stock price. The P/E ratio for is 4.78, lower than AAPL’s P/E ratio i.e. 14.80 indicating that the price paid for a share out of the annual net profit for Apple is much higher comparative to its counterpart. This could be a reason due to RIMM’s sharply decline in its stock price comparative to AAPL. On the other hand APPLE Inc’s EPS too is higher than RIMM’s i.e. $6.30 indicating that the profit allotted to each outstanding share of APPLE Inc’s common stock is far higher than RIMM. The prime reason could be an increase in the sales of APPLE Inc’s hot product line. One other reason could be the increasing demand for iPad 2. The demand outstripped supply for the iPad 2 by a wide margin. I Pad's are already selling for more than twice the retail cost on eBay as gray marketers look to make a quick buck. One might ask why we haven't heard a word from Apple on initial sales. After all, it was pleased as punch to announce the 300,000 unit sales last year. Why so quiet this year? My guess is that Apple is waiting until it hits the big 1,000,000 number before making news of it.
Green Mountain Coffee Roasters (GMCR), a globally renowned provider of coffee, tea & iced k-cup varieties. The stock price rose from $102.62 low to a $103.76 high indicating a positive 1.09% growth rate for the company. The P/E ratio is currently 100.15 whereas the earnings per share are $1.03. The prime reason for such an increase is due to an increased demand for coffee & tea within the United States. Starbucks Corporation (SBUX) on the contrary has experienced a decline in its stock price from $38.19 to a low of $37.11. The P/E ratio for Starbucks Corporation P/E ratio of 24.65 too is lower than Green Mountain Coffee Roasters (GMCR) indicating that lower price has been paid for Starbucks stock compared to its net profit earned. On the contrary one of the competitors for GMCR, Tim Hortons Inc. (THI) has experienced an incline in the stock price comparative to the previous day close. The stock price increased from $47.21 to $47.49 indicating a positive 0.59% growth rate for the company. The P/E ratio for Tim Horton’s Inc. however has been lower than Green Mountain Coffee Roasters as well as Starbucks Corporation indicating that lowest price has been paid for Tim Horton’s stock comparative to GMCR & SBUX. The earnings per share i.e. the EPS has been higher for Tim Horton’s comparative to its counterpart Green Mountain Coffee Roasters indicating that a higher proportion of funds allocated out of the annual net income to the shares for Tim Horton’s. These overall measures of statistics can lead us to imply that over the weekend the coffee sales for Green Mountain Coffee Roasters and Tim Horton’s have been comparatively higher than its counterpart Starbucks Corporations. This fall in the demand for Starbucks may be because many have complained that the coffee price for Starbucks is way too high and expensive. One other prime reason could be that due to Starbucks expensive coffee people are switching their preferences towards other coffee alternatives giving them somewhat similar taste however value for money like McDonald’s and McCafe. Hence Starbucks has been recently struggling to attract and retain customers during these recessionary periods.
Suncor Energy (SU) is a Canadian integrated energy company based in Calgary, Alberta. It specializes in production of synthetic crude from oil sands. Suncor ranks number 159 in the Forbes Global 2000 list has experienced a considerable decrease in its stock price from $31.83 high ( previous close ) to $30.49 indicating a negative growth rate of 4.2% . The company’s P/E ratio is currently 12.08 whereas the EPS is 2.52. The Dividend plus the yield is 0.45 & 1.40% respectively. This fall in the stock price for Suncor Energy is attributed to reduced operations in Libya. Suncor has withdrawn its operations from Libya and isn't likely to return. However the competitors for Suncor Energy too have seen a sharp decline in terms of their share prices. Cairn Energy PLC (CRNCF.PK) stock experienced a high drop of $11.90 from the previous close of $330.90 high to a 319.00 low on September 2nd 2011.
This has resulted in a lower EPS (i.e. earnings per share: the price paid for each share comparative to its annual net income) of $0.83 for Cairn Energy PLC. However these recessionary pressures were absorbed by Tullow Oil (TUWLF.PK) as its last trade went on a $1112.00 high from a $1109.00 low on the previous close experiencing a growth in share price of $3/share (0.27%). The primary reason for Suncor Energy’s share price drop arises due to its inability to operate within a huge oil sector industry i.e. Libya.
AMR Corporation (AAR) is a commercial aviation business and airline holding company based in Fort Worth, Texas, United States. Formed in 1982, as part of American Airlines’ reorganization, its name derives from American Airlines’ ticker symbol on the New York Stock Exchange. Currently the company’s stock is trading at $3.42 and has experienced a decrease of $0.10, with a negative growth rate of 2.84% from its previous close of $3.52. The dividend (yield) for the company is N/A implying that the company has not paid out any dividends so far. The company’s competitors too are experiencing such inflationary pressures as the share price of Ryanair Holdings (RYAAY) having fallen from $3.15 to $3.075 indicating a decrease of $0.074 and a negative growth rate of (2.35%). However this decline in the price paid for each share of Ryanair Holdings is minimal compared to the decline in price for AMR Corporation (AMR). One prime reason could be that such companies have experienced a slight decline in its sales due to the Japan disaster. Hence the airline industry has been lately absorbing various inflationary and recessionary pressures. Under such circumstances it has lost a bit on the prices paid for their respective shares.
Anadarko Petroleum Corporation (APC) is one of the world’s largest independent oil and gas exploration and production companies, with approximately $2.3 billion barrels of oil equivalent of proved reserves and production of $206 million BOE as of December 31, 2008. The company’s current stock is trading at $69.71 from a previous close of $72.02 indicating a sharp decline of $2.31 accompanied by a negative growth rate of 3.21%. The company’s price to earnings ratio is 41.40, with a dividend (yield) of $0.36(0.50%) and earnings per share of $1.68. On the contrary, the competitors for Anadarko Petroleum such as Tullow Oil had their last trade on $1112.00, an increase of $3 from their previous close, reflecting a 0.27% increase in its share price. The P/E ratio was steady at 3507.89 reflecting a higher price paid for Tullow compared to its competitor Anadarko Petroleum having its P/E ratio at 41.40. The dividends for both the corporations are still not declared. One prime reason could be that due to the inflationary pressures imposed by recessionary factors, the firms may be resisting on paying out dividends, instead, retaining cash into business in order to utilize it to leverage debt-financing & increase excessive cash holdings in order to utilize it in the future, if the need arises.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.