Billionaire David Harding’s Most Promising Stock Picks

$3.7 billion market cap packaging company Bemis Company, Inc. (NYSE:BMS) was another small-cap stock in Winton’s portfolio with the fund reporting a position of about 710,000 shares. In the third quarter of 2012, Bemis’s revenue declined by 5% and combined with weaker margins this brought earnings down by 15%. There is a moderate dividend yield here, close to 3%, and the beta of 0.5 makes it a potential defensive stock. However, the stock does trade at 24 times trailing earnings and combined with its poor recent performance it may be overvalued.

Winton owned about 860,000 shares of NASDAQ OMX Group, Inc. (NASDAQ:NDAQ). Billionaire Ken Griffin’s Citadel Investment Group cut its stake in NASDAQ OMX during the third quarter but still closed September with 1.8 million shares in its own portfolio (check out Griffin’s stock picks). Sales and net income have been down at NASDAQ OMX, falling about 20% in the company’s most recent quarterly report compared to the same period in 2011. The earnings multiples are low- for example, the current-year P/E is only 10- but it might be best to avoid the stock anyway.

Gannett Co., Inc. (NYSE:GCI) rounded out our list of Harding’s small cap picks. The newspaper publisher, which does also have digital and broadcasting business units, actually reported increases in both revenue and earnings in Q3 2012 from their levels in the third quarter of 2011. At 11 times trailing earnings, and with a dividend yield of 4%, it actually looks like it might be worth doing further research on Gannett. Omega Advisors, managed by billionaire Leon Cooperman, owned 4.4 million shares of Gannett at the beginning of October (find Cooperman’s favorite stocks).

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

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!