Facebook Inc (NASDAQ:FB) was one of SAC Capital’s largest increases, an over 1,500% increase in shares owned. The social networking company is now the hedge fund’s fourth largest holding, versus being its 309th largest holding during the third quarter. Facebook has a massive user base with immense amounts of data, making it an impressive database for helping advertisers target more relevant ads going forward. Facebook Inc (NASDAQ:FB) has significant growth opportunities to increase online advertising; IDC expects that total spending on display ads will reach $19 billion in the U.S. by 2015.
Recent quarterly results showed that EPS came in a at $0.17 for the fourth quarter, improving 13% from the same quarter last year and 41% from the previous quarter. Another key positive is that advertising revenue was up 43% year over year and average revenue per user was up 11% year over year (check out Facebook’s great growth opportunity).
Schlumberger Limited. (NYSE:SLB) was one of SAC Capital’s modest increases, an 18% boost in shares, and now its fifth largest holding. Schlumberger is a supplier of technology and information solutions to international oil and gas exploration and production companies. Schlumberger has impressive balance sheet strength, with a debt ratio of less than 20%, interest coverage ratio of 20 times and a current ratio of 2.0, meanwhile the company also increased its cash on hand by 35% last quarter on a year over year basis.
The company also has impressive exposure to growing deepwater activity thanks to its seismic capabilities. This is even more important as hydraulic fracturing and land drilling activity is being depressed due to environmental concerns. In the international arena, The company is aiming for continued margin improvement, which should be driven by growth in Middle East, Asia, Europe and Africa. The oil and gas equipment company also pays a 1.6% dividend yield, which is only a 30% payout of earnings.
Don’t be fooled
Steve Cohen has managed to return some 30% annually over the last twenty years, which is all the more reason to take notice of what he has been up to (see Cohen’s latest stock picks). SAC Capital rearranged its entire top five stocks last quarter, making a big bet on Sherwin-Williams Company (NYSE:SHW) and an implied rebound in housing. Other big bets are on News Corp (NASDAQ:NWS) and eBay Inc (NASDAQ:EBAY), while also taking interest in Facebook Inc (NASDAQ:FB). The social network was down 30% for 2012. Meanwhile, Cohen kept Schlumberger Limited. (NYSE:SLB) as one of his top holdings.
The article Billionaire Steve Cohen Shakes Up His Top Five originally appeared on Fool.com and is written by Marshall Hargrave.
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