Billionaire Stephen Mandel’s High Upside Potential Picks Include Apple Inc. (AAPL)

Page 1 of 2

Stephen Mandel worked at legendary investor Julian Robertson’s Tiger Management until 1997 when he left to launch Lone Pine Capital. Lone Pine now has over $15 billion in assets under management and Mandel himself has become a billionaire. Thanks to 13F filing requirements, we can look at the set of stocks which the fund owned and which have low PEG ratios- a valuation metric which considers both the standard P/E multiple and the expected growth rate of earnings- to come up with a list of high upside potential stock picks from Mandel’s portfolio. Obviously many of these companies will miss earnings projections, as we are working with estimates from Wall Street analysts, but the PEG ratio is still a guide to potential and investors can do further research on any intriguing names anyway. Here are five stocks with low PEG ratios that Lone Pine reported owning in its most recent 13F filing (see the rest of Mandel’s stock picks):

LONE PINE CAPITAL

Even though Lone Pine cut its stake in Apple Inc. (NASDAQ:AAPL) during the third quarter of 2012, the fund still owned a little more than 800,000 shares and Apple was one of its ten largest holdings. Apple Inc. (NASDAQ:AAPL) trades at only 12 times trailing earnings, and with the Street expecting solid growth numbers the PEG ratio is only 0.5. We wouldn’t be that optimistic, but we like Apple Inc. (NASDAQ:AAPL)’s position in the tablet and smartphone markets and think that even with modest growth rates the stock would be undervalued at the current price. Apple was the most popular stock among hedge funds during the third quarter (see the full top ten list).

NetEase, Inc (NASDAQ:NTES), a $5.7 billion market cap online gaming and Internet portal in China, was another of Mandel’s picks with Lone Pine reporting a position of 6.2 million shares. Revenue and net income were about flat in the third quarter compared to the same period in 2011, but with the stock trading so cheaply- the trailing P/E is only 10- sell-side growth projections bring the PEG ratio down to 0.8. Orbis Investment Management, which is managed by William Gray, owned over 17 million shares of the stock. It’s possible that worries about the reliability of Chinese companies’ financials are holding the stock price down, and so NetEase might be worth a very close look.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!