Bill Miller And Insiders Are Bullish On These Stocks

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 |  Includes: AET, AFL, AGO, BBY, BLK, CELG, EBAY, F, GM, JNJ, JPM, KKR, MDT, MRK, MS, NLY, PFE, UAL, UNH, WFC
by: Insider Monkey

Bill Miller is chairman and chief investment officer of Legg Mason Capital Management. The Legg Mason Capital Management Value Trust beat the S&P 500 index for 15 consecutive years from 1991 through 2005, turning Miller into an investing legend 5 years ago. Unfortunately the fund did not perform well in recent years. Nevertheless, Legg Mason devotes significant resources to researching stocks and outsiders may gain insights from Miller’s stock picks.

Additionally, corporate insiders have material non-public information, and they sometimes trade based on such information. Other times they have an edge because they know their companies and industries better than almost all other investors. We believe that by imitating the stock picks of these smartest investors in the world, investors are more likely to beat the market in the long term.

Below we compiled a list of 20 stocks both Miller and insiders are bullish on. All stocks are in Miller’s portfolio at the end of June and were purchased by at least one insider over the past three months.

Company

Ticker

Value (x1000)

No. of Insiders

Return Since June

EBAY INC

(NASDAQ:EBAY)

237,903

1

0.87%

BLACKROCK INC

(NYSE:BLK)

198,609

1

-20.96%

WELLS FARGO

(NYSE:WFC)

190,125

1

-11.27%

UNITED CONTINENTAL

(NYSE:UAL)

189,371

1

-5.30%

JPMORGAN CHASE

(NYSE:JPM)

169,278

5

-22.22%

UNITEDHEALTH

(NYSE:UNH)

167,181

1

-5.04%

CELGENE CORP

(NASDAQ:CELG)

158,045

4

4.61%

AETNA INC NEW

(NYSE:AET)

155,930

1

-10.22%

JOHNSON & JOHNSON

(NYSE:JNJ)

149,803

1

-4.91%

MEDTRONIC INC

(NYSE:MDT)

140,428

3

-11.81%

PFIZER INC

(NYSE:PFE)

126,541

1

-12.76%

AFLAC INC

(NYSE:AFL)

120,451

1

-29.65%

FORD MOTOR CO

(NYSE:F)

111,680

2

-26.90%

BEST BUY COMPANY

(NYSE:BBY)

102,121

1

-19.71%

MORGAN STANLEY

(NYSE:MS)

89,249

5

-36.37%

MERCK & CO INC

(NYSE:MRK)

86,716

2

-9.35%

ASSURED GUARANTY

(NYSE:AGO)

74,403

2

-36.37%

GENERAL MOTORS

(NYSE:GM)

72,771

4

-30.57%

ANNALY CAPITAL

(NYSE:NLY)

66,247

1

-3.38%

KKR FINANCIAL

(KFN)

55,173

1

-17.54%

Click to enlarge

eBay Inc (EBAY) brings together buyers and sellers every day on a local, national and international basis through a range of websites. Miller invested $238 million in EBAY at the end of June, and it was purchased by one insider over the past three months. It has a market cap of $42.53B, a P/E ratio of 24.94, and returned 0.87% since the end of the second quarter. Ken Griffin had $189 million invested in EBAY (see Ken Griffin’s top stock picks).

BlackRock Inc. (BLK) is an independent investment management firm. Miller invested $199 million in BLK at the end of June, and it was purchased by one insider over the past three months. It has a market cap of $27.99B, a P/E ratio of 12.74, and returned -20.96% since the end of the second quarter. John Paulson had $361 million of BLK shares (check out John Paulson’s top stock picks).

Wells Fargo (WFC) is a diversified financial services company. Miller invested $190 million in WFC at the end of June, and it was purchased by one insider over the past three months. It has a market cap of $134.77B, a P/E ratio of 9.91, and lost 11.27% since the end of the second quarter. Warren Buffett invested nearly $10 billion in WFC (see Warren Buffett’s top stock picks). Ken Fisher and John Paulson are also main holders of WFC stocks.

United Continental (UAL) is an airline holding company. Miller invested $189 million in UAL at the end of June, and it was purchased by one insider over the past three months. It has a market cap of $6.84B, a P/E ratio of 14.98, and lost 5.30% since the end of the second quarter. Paul Reeder and Edward Shapiro had over $250 million of UAL shares.

JPMorgan Chase (JPM) is a financial holding company. Miller invested $169 million in JPM at the end of June, and it was purchased by five insiders over the past three months. It has a market cap of $126.10B, a P/E ratio of 6.90, and returned -22.22% since the end of the second quarter. Jonathon Jacobson invested $466 million in JPM shares.

UnitedHealth Group Inc (UNH) is a diversified health and well-being company. Miller invested $167 million in UNH at the end of June, and it was purchased by one insider over the past three months. It has a market cap of $53.83B, a P/E ratio of 11.21, and lost 5.04% since the end of the second quarter. Boykin Curry had $382 million invested in UNH shares.

Celgene Corp (CELG) is a global integrated biopharmaceutical company. Miller invested $158 million in CELG at the end of June, and it was purchased by four insiders over the past three months. It has a market cap of $29.47B, a P/E ratio of 29.49, and returned 4.61% since the end of the second quarter. Bain Capital also had more than $400 million invested in CELG.

Aetna Inc (AET) is a diversified health care benefits company. Miller invested $156 million in AET at the end of June and it was purchased by one insider over the past three months. It has a market cap of $14.87B, a P/E ratio of 8.66, and returned -10.22% since the end of the second quarter. Larry Robbins invested over $200 million in AET shares.

Johnson & Johnson (JNJ) is engaged in the research and development, manufacture and sale of a range of products in the health care field. Miller invested $150 million in JNJ at the end of June, and it was purchased by one insider over the past three months. It has a market cap of $175.25B, a P/E ratio of 15.31, and returned -4.91% since the end of the second quarter. Warren Buffett had $2.8 billion invested in JNJ. Ken Fisher also invested $713 million in JNJ (see Ken Fisher’s top stock picks).

Morgan Stanley (MS) is a global financial services firm. Miller invested $89 million in MS at the end of June, and it was purchased by five insiders over the past three months. It has a market cap of $42.53B, a P/E ratio of 24.94, and returned -36.37% since the end of the second quarter.

Disclosure: I am long MS.