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  • Complete T. Boone Pickens And BP Capital Portfolio Update

    T. Boone Pickens, founder of BP Capital, has never been afraid to shake up his energy heavy portfolio and that is exactly what he was doing in the first quarter of 2013. Keeping track of T.Boone and other famous investors is a great way to learn about different investments and portfolio strategies, and the best part is you can do this for free!

    Below is a complete look at BP's portfolio as of 3/31/13:

    Portfolio

    • BP's portfolio value increased slightly to $100.9 million at the end of the first quarter, up 0.12% from its year end value of $100.789 million.

    Visual

    Here is a quick look at the portfolio:

    (click to enlarge)

    New Holdings

    • BP made several new purchases in the first quarter and the largest of them was a $9.6 million stake in Apache Corp (NYSE:APA). This investment was the second largest holding at the end of March.
    • In addition to the Apache purchase, BP added a $5.83 million stake in Tesoro (NYSE:TSO), a $5.8 million position in Marathon Pete (NYSE:MPC), $5.7 million of Gulfport Energy shares (NASDAQ:GPOR) and a $5.5 million position in Concho Resources (NYSE:CXO).
    • Basic Energy (NYSE:BAS) was also a new position held at the end of March, worth $3.07 million (3.05% of the portfolio).
    • Smaller positions were added in Newmont Mining (NYSE:NEM), Enterprise Products (NYSE:EPD), Apple (NASDAQ:AAPL), General Electric (NYSE:GE), BP (NYSE:BP) and Dow Chemical (NYSE:DOW).

    Other purchases

    • BP Capital upped the share count of its largest holding, Pioneer Natural Resources (NYSE:PXD), by 71% to $12.9 million (12.81% of the portfolio).
    • The portfolio also held 588% more shares of Goodrich Petroleum (NYSE:GDP), 214% more shares of CONSOL Energy (NYSE:CNX), 175% more shares of Arch Coal (NYSE:ACI) and 24% more shares of Occidental Petroleum (NYSE:OXY) at the end of the first quarter.

    No Changes

    • Get ready, BP Capital practically made changes to every position it held at the end of 2012. The only two with moderate changes, were a small decrease in the number of shares held in Devon Energy (NYSE:DVN), the funds fourth largest position, and another slight decrease in BP's position in Gastar (NYSEMKT:GST).

    Sell Outs

    • BP completely sold out of Marathon Oil (NYSE:MRO), National Oilwell Varco (NYSE:NOV), Newfield Exploration (NYSE:NFX), Range Resources (NYSE:RRC), Sandridge Energy (NYSE:SD), Southwestern Energy (NYSE:SWN),Transocean (NYSE:RIG) and Weatherford International (NYSE:WFT). Southwestern Energy ($10.2 million) and Range Resources ($8.548) were the largest of these investments at the end of 2012.

    Other Sales

    • 51% of BP's investment of Anadarko Pete (NYSE:APC) was sold. This position was worth $3.9 million at the end of March.
    • 79% of BP's investment in Valero (NYSE:VLO), 67% of its Halliburton (NYSE:HAL) shares and 92% of the shares held in Freeport McMoran (NYSE:FCX) were also sold. These positions were worth $3.3 million, $2.0 million and $261 thousand respectively at the end of the first quarter.

    So, do you think Mr. Pickens made the right moves? Which of these have you bought/sold lately?

    Disclosure: I am long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Tags: AAPL, ACI, APA, APC, BAS, BP, CNX, CXO, DOW, DVN, EPD, FCX, GDP, GE, GPOR, GST, HAL, MPC, MRO, NEM, NFX, NOV, OXY, PXD, RIG, RRC, SD, SWN, TSO, VLO, WFT, fund-holdings
    May 16 2:22 PM | Link | Comment!
  • S&P 500's Top Technology Sector Buybacks

    Yesterday, the S&P Dow Jones Indices reported that "S&P 500 stock buybacks decreased 4.4% to $99.1 billion during the fourth quarter, off slightly from the $103.7 billion spent on share repurchases during the third quarter of 2012."

    While some investors like dividends, I personally prefer buybacks because the government doesn't tax me on them and because they increase my stake in the business.

    From this report, the Information Technology sector had the largest buybacks of the S&P 500 with $22.8 billion. Of the top 20 largest buybacks, 5 companies operated in this space and are as follows:

    3rd: International Business Machines (NYSE:IBM) with $3.007 billion.

    4th: Oracle Corporation (NYSE:ORCL) with $2.996 billion.

    8th: Apple (NASDAQ:AAPL) with $1.950 billion.

    9th: Microsoft (NASDAQ:MSFT) with $1.658 billion.

    11th Yahoo! (NASDAQ:YHOO) with $1.452 billion.

    Below are some cashflow highlights that can be used to help evaluate whether or not these companies have enough earnings power to generate the money needed to continue these buybacks:

    IBM has a market cap of $235 billion and currently trades for $210.89 per share. The stock is up 10.56% and only 2% off its 52 week high. Analyst have a mean target price on the shares of $225.76 and a median price target of $230.00.

    Positives for IBM

    • Operating margins of 19.6% and net margin of 15.9% are above the industry averages 11.5% and 13.6% respectfully.
    • ROE of 85.2 is substantially above the industry averages 38.8.
    • On revenues of $104.5 billion in 2012, IBM generated $19.5 billion in cash from operations (18%).
    • In addition to the share repurchases, IBM had a dividend yield of 1.61%.

    Oracle has a market cap of $151.26 billion and currently trades for $31.95 per share. Shares are down 4% YTD and 12% off their 52 week highs. Analysts have a mean price target of $38.28 on the shares and a median target price of $38.00.

    Positives for Oracle

    • P/E of 14.5 is substantially below the industry averages 35.3.
    • Revenue growth average over the past three years of 16.9% is above the industry averages 8.2%.
    • On revenues of $37.1 billion in 2012, Oracle produced $13.74 billion in cash from operations (37%).
    • In addition to the share repurchases, Oracle shares yield a small 0.57% dividend.

    Coming in 3rd was Apple who repurchased $1.950 billion in shares. Apple has a market cap of $424.53 billion and trades for $452.08 per share. Shares are down 14% YTD and 35% off their 52 week highs. Despite their fall, analysts maintain a mean price target of $618.72 and a median target price of $600.00 on the shares.

    Positives for Apple

    • P/E of 10.5 and P/B of 3.4 are both below the industry averages 13.9 and 4.1 respectfully.
    • Average revenue growth over the past three years of 53.9% is substantially above the industry averages 8%.
    • Operating margins of 33.5% and net margins of 25.4% are also above the industry averages 11.5% and 13.6% respectfully.
    • On revenues of $156.5 billion last year, Apple generated $50.85 billion in cash from operations (32%).
    • In addition to the buybacks, Apple shares yield a modest 1.76% dividend.

    In fourth was Microsoft with $1.658 billion in buybacks. Microsoft has a market cap of $237 billion and shares currently trade for $28.37. YTD, shares are up 7% but are 11% off their 52 week highs. Analysts have a mean target price of $32.91 on the shares with a median price target of $33.00.

    Positives for Microsoft

    • P/E of 15.5, P/B of 3.2 and P/S of 3.3 are all below the industry averages 35.3, 3.4, and 3.6 respectfully.
    • D/E of 0.2 is below the industry averages 0.3.
    • On revenues of $73.7 billion in 2012, cash from operations came in at $31.6 billion (42.8%).
    • In addition to the buybacks, shares of Microsoft currently carry a 3.03 dividend yield.

    Last but not least was Yahoo! who repurchased $1.452 billion in shares during the fourth quarter of 2012. Yahoo! has a market cap of $25.9 billion and shares currently trade at $23.59 per share. The stock has performed very well this year and is up 18.5% YTD and at its 52 week highs. Analysts have a mean price target of $22.76 and a median target of $22.00.

    Positives for Yahoo!

    • P/E of 7.2, P/B of 1.8 and P/S of 5.7 are all below the industry averages 28.2, 4.0, and 5.8 respectfully.
    • Net margin of 79.1% and ROE of 29.1 are both above the industry averages 18.7% and 13.6 respectfully.
    • Of all the 5 companies, Yahoo had negative cashflows from operations and does not pay a dividend (Not so positive!)

    Bottom Line

    Investors have to like the massive amounts of money these giants have been using to repurchase shares. And, based on margins and cashflows it appears all have what it take to continue these repurchases in the future.

    Disclosure: I am long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Mar 28 10:25 AM | Link | Comment!
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