Apple Inc. (AAPL) Among This Major Investor’s Favorite Stock Picks. Who Else Made The Cut?

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QUALCOMM, Inc. (NASDAQ:QCOM) was another of the fund’s top stock picks during Q4. While QUALCOMM, Inc. (NASDAQ:QCOM)’s reported net income did decline in the first quarter of 2013 versus a year earlier, this was because of earnings from discontinued operations in Q1 2012; earnings from continuing operations actually rose 30%, in line with revenue growth. With a trailing P/E multiple of 18, we think that QUALCOMM, Inc. (NASDAQ:QCOM) could potentially be growing fast enough to make it undervalued at these levels and would be interested in researching it further.

The filing showed a position of about 590,000 shares in Citigroup Inc (NYSE:C). At a P/B ratio of 0.8, Citigroup Inc (NYSE:C) continues to carry a considerable discount to the book value of its equity even after a 52% gain in the last year. Earnings have been rising as well, although the forward earnings multiple of 9 is not really out of the ordinary for a large bank at this time (and incorporates quite high expectations from Wall Street analysts). It certainly could be a value play, although we’d want to compare Citi to its peers.

There are a number of interesting companies to check out here. Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) has been arguably cheap for some time, and any possibility of its acquisition attempt failing is worth noting. Phillips 66 (NYSE:PSX), Citigroup Inc (NYSE:C), and Apple Inc. (NASDAQ:AAPL) also look a bit like conventional value stocks, although in Apple Inc. (NASDAQ:AAPL)’s case the business does have to halt its decline to make sense at current levels and we’ve noted that other megabanks might be better buys than Citi. Qualcomm isn’t as conventional in value terms but its recent growth has been high enough that it might offer “growth at a reasonable price.”

Disclosure: I own no shares of any stocks mentioned in this article.

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