Billionaire Jeffrey Vinik’s Cheap Stock Picks Include Barrick Gold

Page 1 of 2

VINIK ASSET MANAGEMENTBillionaire Jeffrey Vinik returned much of Vinik Asset Management’s capital to investors in 2000, but continues to invest money for family and friends. We have already gone through Vinik’s most recent 13F filing to see some of the long equity positions he liked (see Vinik’s stock picks). By considering each of these stocks further, we can pick out those which look like value stocks according to traditional criteria- P/E multiples- and see if these stocks in particular look like good values. Here are five stocks which Vinik reported owning more than $25 million of at the end of September and which have trailing and forward P/E multiples of 13 or lower:

One of Vinik’s top stock picks was Barrick Gold Corporation (NYSE:ABX), with a position of 2.3 million shares. Barrick’s earnings multiples- 11 on a trailing basis, with earnings growth expected this year- make it considerably cheaper than other gold miners such as Goldcorp Inc. (NYSE:GG). However, the company has not been doing well recently: last quarter revenue was down 14% versus a year earlier, contributing to a 55% decline in net income. Fellow billionaire David Einhorn’s Greenlight Capital owned about 2 million shares (find Einhorn’s stock picks). We think Barrick might be a good alternative to investing directly in gold, though it is of course ultimately dependent on gold prices and that might be too speculative for us.

Foot Locker, Inc. (NYSE:FL) was another top pick as Vinik more than tripled his stake in the footwear retailer. Foot Locker does look like it has value potential- it trades at 13 times trailing earnings but sales were up 9% in its most recent fiscal quarter compared to the same period in the previous fiscal year (earnings grew at a much faster rate, though that is likely not sustainable). AQR Capital Management , which is managed by Cliff Asness, increased its holdings of Foot Locker last quarter as well (check out more stocks Asness was buying). We think that it’s worth taking a closer look at the company.

South Korean telecom company KT Corporation (NYSE:KT) has a market capitalization of $4 billion, which together with sell-side estimates imply a forward P/E of only 8. KT’s recent financial performance has been good, and it too may be worth investigating. We’d note that Vinik, who initiated a position of 1.8 million shares last quarter, also has a position in Korea Electric Power Corporation (NYSE:KEP) so he is likely bullish on South Korea as a whole.

Read on to see a cheap oil company that Vinik likes:

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 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!