Agrium, Chevron, and More: Billionaire Richard Chilton’s Cheap Stock Picks

Page 1 of 2

CHILTON INVESTMENT COMPANYRichard Chilton founded Chilton Investment Company in 1992 and has since become a billionaire as the fund’s fundamental value-oriented investment strategy has produced good returns. The fund recently filed its 13F for the third quarter of 2012; this filing discusses many of Chilton’s long equity positions (see Chilton’s stock picks). We thought it might be interesting to look at some of the low-multiple stocks in the fund’s portfolio and see if they are worthy of further research. Here is our quick take on Chilton’s five largest holdings by market value in stocks with trailing and forward P/E multiples of 12 or lower:

Agrium Inc. (NYSE:AGU) was one of Chilton’s five largest holdings with the fund owning about 890,000 shares, and trades at 12 times trailing earnings. Agrium is a wholesaler and retailer of fertilizers and other agricultural products, and JANA Partners (a value hedge fund managed by Barry Rosenstein) has been buying up shares in the company and encouraging management to split the business in two to create more shareholder value. Find out more about JANA and Agrium. Net income was down 57% in the third quarter compared to the same period in 2011, but the stock is up strongly as the market expects higher demand for agriculture products as the demand for food increases.

Chilton also liked Corning Incorporated (NYSE:GLW), reporting a position of 6.8 million shares. Corning provides products including specialized glass displays and optical fiber, and has a market capitalization of $18 billion. This places its valuation at 10 times trailing earnings. Its business has also been performing poorly recently- last quarter its earnings were down 36% versus a year earlier- but Wall Street analysts expect the company to rebound and get steady growth over the next several years. The forward P/E multiple is 9, and the five-year PEG is 0.8. As a result we think that the company is well worth considering on a value basis.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!