Apple Inc. (AAPL), Moody’s Corporation (MCO), and McGraw Hill Financial Inc (MHFI): Billionaire Julian Robertson Traded iPhones for Tax Returns During Q1

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And yours, too. The 13F reported that Robertson initiated a position of about 850,000 shares in tax prep company H&R Block (NYSE:HRB). The stock has nearly doubled in the last year. This places it at a valuation of more than 20 times its trailing earnings, but analyst consensus is that the fourth quarter of its fiscal year, which ended in April (unsurprisingly this is by far H&R Block’s biggest quarter and often the only profitable one of its year) will show nearly 30% EPS growth against last fiscal year’s Q4. The forward P/E is 15, which is quite a bit lower but would require further growth from that point. H&R Block pays a dividend yield of almost 3%. Billionaire (and Tiger Cub) Andreas Halvorsen’s Viking Global has been a major shareholder in the company (find Viking Global’s favorite stocks).

We’re not sure that we’d follow Robertson’s lead in selling Apple Inc. (NASDAQ:AAPL), but his bearishness on the stock is certainly something shareholders in the company should be aware of. We’d avoid Moody’s Corporation (NYSE:MCO) and McGraw Hill Financial Inc (NYSE:MHFI) for now- the former seems pricy, and we’d like to see at least one quarter of results from the latter as it is currently composed (though the sale of the education unit could lead to improved efficiencies as management is better able to concentrate on the operations of the financial information business). H&R Block looks interesting, though of course its attractiveness is dependent on its results from last quarter and it might not be too wise to trust in sell-side estimates.

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

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