6 Top Stock Picks From Hedge Fund Billionaire Leon Cooperman

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Includes: AAPL, BSX, GM, RIG, SUN, TEVA
by: Hawkinvest

Leon Cooperman is a billionaire and founder of Omega Advisors, Inc., a hedge fund with about $6 billion in assets. Leon Cooperman was born into modest means but has become incredibly successful. This is very much due to his ability to pick the right stocks at the right price. Mr. Cooperman often considers value stocks as the best investments for the long term. He founded Omega Advisors in 1991, after holding high positions at Goldman Sachs. With that kind of long term track record, it makes sense to follow and consider some of his funds top stock positions. This link shows some of the most recent positions in his fund. Here is a closer look at some of his favorite stocks:

Transocean (NYSE:RIG) is a major offshore oil and gas drilling contractor that operates worldwide with a fleet of about 138 mobile offshore rigs that it either owns or operates. This company is still dealing with legal issues and liability from the BP oil spill. This stock is one of the cheapest in this sector and is trading below book value due to the ongoing BP spill concerns.

Here are some key points for RIG:

  • Current share price: $58.89
  • The 52 week range is $49.05 to $85.98
  • Earnings estimates for 2011: $3.53 per share
  • Earnings estimates for 2012: $5.91 per share
  • Book value: about $65.34 per share

Teva Pharmaceutical Industries (NYSE:TEVA) is a leading maker of generic drugs. This stock is trading near the 52 weeks lows and based on 2012 earnings estimates of nearly $6 per share and a decent dividend, this stock looks like a solid value for long term investors.

Here are some key points for TEVA:

  • Current share price: $38.33
  • The 52 week range is $37.57 to $57.08
  • Earnings estimates for 2011: $5.05 per share
  • Earnings estimates for 2012: $5.71 per share
  • Annual dividend: 79 cents per share which yields 2.1%
  • Book value: $26.58 per share

Sunoco, Inc. (NYSE:SUN) is a leading refiner of petroleum products. The past couple of years have been tough for refiners but margins are expected to improve. Some believe that Sunoco could be worth about 50% more in a break-up or sale, read more on that here.

Here are some key points for SUN:

  • Current share price: $37.03
  • The 52 week range is $27.76 to $46.98
  • Earnings estimates for 2011: 45 cents per share
  • Earnings estimates for 2012: $2.13 per share
  • Annual dividend: 60 cents per share which yields 1.6%

Boston Scientific (NYSE:BSX) is a leading maker of medical device products, which includes stents, catheters, pacemakers, and more. This stock was trading over $7 in July and dropped to about $6 in recent lows, but has started to rebound. If I had to choose between TEVA or BSX, I would say TEVA looks like a better buy now.

Here are some key points for BSX:

  • Current share price: $6.46
  • The 52 week range is $5.24 to $7.96
  • Earnings estimates for 2011: 45 cents per share
  • Earnings estimates for 2012: 53 cents per share
  • Annual dividend: none
  • Book value: $7.55 per share

General Motors, Inc. (NYSE:GM) is one of the largest automakers in the world. The company and the stock price still seems to suffer from the government aid it received, but over time that may fade. The other big concern is that a recession might reduce sales for GM in the coming quarters. However, the stock is trading at almost half of the 52 week high and with a price to earnings multiple of about 5, so it is easy to see value in these shares.

Here are some key points for GM:

  • Current share price: $22.18
  • The 52 week range is $20.88 to $39.48
  • Earnings estimates for 2011: $4.36 per share
  • Earnings estimates for 2012: $4.48 per share
  • Annual dividend: None
  • Book value: $20.47 per share

Apple Computer, Inc. (NASDAQ:AAPL) is a maker of the popular iPhone, iPad, Mac computer and more. Consumer demand remains strong for almost every product made by Apple, and a correction or recession is not likely to hold this stock back for too long. I would not be surprised to see Apple beat the current earnings estimates shown below, especially with the holiday season and new product launches like the Iphone 5 coming up soon.

Here are some key points for AAPL:

  • Current share price: $389.30
  • The 52 week range is $269.50 to $404.50
  • Earnings estimates for 2011: $27.49 per share
  • Earnings estimates for 2012: $32.29 per share
  • Annual dividend: none

Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

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

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