Billionaire T. Boone Pickens’ New Stock Picks Include FCX

The 13F reported a new position of a little over 60,000 shares of oil major Occidental Petroleum Corporation (NYSE:OXY). Occidental made our list of the most popular energy stocks among hedge funds for the fourth quarter of 2012 (see more energy stocks hedge funds loved). It too has been impacted by lower margins, with earnings down sharply in Q4 from their levels in the same period in the previous year even though sales actually increased slightly. The stock carries trailing and forward P/E multiples of 14 and 10, respectively- this makes it at least as expensive as market leader Exxon Mobil Corporation (NYSE:XOM).

Weatherford International Ltd (NYSE:WFT), a $9.1 billion market cap oil and gas equipment and services company, was another of Pickens’ new stock picks. Because much of the demand for equipment is tied to drilling activity, Weatherford’s stock price is sensitive to market conditions with a beta of 2.2. However, it has fallen 28% against a rising market in the last year as earnings have tumbled. Consensus for 2013 places the current-year P/E at 12. Billionaire Jeffrey Vinik was also buying Weatherford shares between October and December (research more stocks Vinik owned).

One company which is moving into the oil business through a pair of related acquisitions is Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), and that stock was the fifth largest new holding for Pickens. The market has reacted quite negatively to the acquisition news- in addition to Freeport-McMoRan being treasured as a barometer of copper demand, the acquisitions came at large premiums to where the target companies had been trading. While we didn’t like the deal it’s possible the market has driven down the stock price to value levels. Billionaire John Paulson’s Paulson & Co. reported a large position in Freeport-McMoRan at the end of December (find more stocks Paulson was buying).

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 Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!