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In this installment of my analysis of recent purchases made by renowned investors, I will look at five tech stocks bought by Citadel Advisors LLC using the latest available SEC filings of the fund. For this article, I have selected stocks purchased by the fund during the 3rd quarter of last year that offer a minimum return of 20% from current levels.

Google (NASDAQ:GOOG)

Google was in news today with the Wall Street Journal reporting that the U.S. Department of Justice was poised to approve Google's acquisition of Motorola Mobility (NYSE:MMI). GOOG plans to pay $12.5 billion ($40 a share) for MMI. GOOG is down 5.5% year to date compared with the 12% gain in the tech heavy NASDAQ (NASDAQ:QQQ) index.

Citadel upped its position in GOOG by 106% by adding approximately 188,000 shares. The company is expected to grow its earnings at an annual rate of 19% on par with the projected 20% growth rate of the industry. Applying my estimated P/E of 21 to 2012 EPS estimate of $38.21, my initial price target of $800 a share is obtained. A return of 32% is possible from current levels.

Western Digital (NASDAQ:WDC)

WDC is a $9.34 billion company by market cap and provides solutions for the collection, storage, management and protection of digital content. The stock is up 9% over the last year. Analysts still expect the company to grow at an annual rate of 12% over the long term compared with the 16% growth rate of the broader industry. WDC grew its earnings by 13% annually during the last 5 years.

Citadel practically initiated a position in WDC by purchasing 1.33 million shares, an increase of 4,249%. The stock traded in the range of $25 and $36 during Q3 2011 and currently trades at $40. Applying a P/E of 8.3 to my calendar year 2012 EPS estimate of $5.96, my price target of $50 is obtained. A return of 24% is possible from current levels.

Apple (NASDAQ:AAPL)

Apple was Citadel's biggest investment during 2011 Q3. Citadel acquired 1.63 million shares of AAPL stock to take its total position to 2.43 million. My price target for AAPL is $677 a share. Trading at $479, AAPL is undervalued by over 45%. I have presented my analysis and fair value estimation in a recent article on AAPL and would encourage you to visit it for further details on the subject.

Oracle (NYSE:ORCL)

Oracle is locked in a battle with SAP over an intellectual-property theft case. On Thursday, Oracle rejected a $272 million award and opted to pursue a new trial against SAP. A jury had earlier awarded ORCL a payment of $1.3 billion, which the judge later overruled.

ORCL increased its earnings at an annual rate of 19% during the last 5 years and is now projected to grow at an annual rate of 12%. Citadel Advisories increased its position in ORCL by 1,672% by acquiring approximately 2.6 million shares.

My target of $37 is obtained by applying a P/E of 15 to my 2012 EPS estimate of $2.46. A return of 28% is possible from current levels.

Symantec (NASDAQ:SYMC)

SYMC is a $13 billion company by market cap and provides security, storage and systems management solutions to help customers manage their information and identities. The stock is down 2% over the last 5 years. During this time period, the company grew its earnings at an annual rate of 7%. Going forward, analysts expect a faster growth rate of 10% compared with the 20% growth rate of the broader industry.

Citadel added 2.28 million shares of SYMC stock, an increase of 1,056%. The stock primarily traded in the range of $16 and $19 during Q3 2011 and currently trades at $17.75. Applying a P/E of 14 to 2013 EPS estimate of $1.76 (FY ending March 2013), my price target of $25 is obtained. A return of 41% is possible from current levels.

As always, please do not consider this a "buy" list, rather use it as a starting point for your research. Of the companies listed above, I find AAPL particularly attractive based on fundamentals and growth prospects.

Source: 5 Tech Picks From Citadel With 20% Upside