Edgar Wachenheim’s Stock Picks Include Lowe’s

Lowe’s Companies, Inc. (NYSE:LOW). The market has liked the home improvement store, sending its stock up 32% in the last year and valuing Lowe’s at 21 times trailing earnings. Greenhaven reported a position of 12.5 million shares in Lowe’s. Billionaire Ken Griffin’s Citadel Investment Group had moved heavily into the stock during Q3, closing September with 3.9 million shares in its portfolio (check out Griffin’s stock picks). We think that the valuation may be too high for us to recommend getting involved at this time.

Air Products & Chemicals, Inc. (NYSE:APD). The $19 billion market cap manufacturer of gases was another of Greenhaven’s top picks with the fund owning 3.7 million shares according to the 13F. Air Products & Chemicals’ fiscal year ended in September, with earnings for the fourth quarter of the fiscal year coming in 57% below their levels from a year earlier. Two insiders were buying the stock in the middle of October (see a history of insider purchases at Air Products & Chemicals).

3M Co (NYSE:MMM). Greenhaven cut its stake in 3M by 7% but still owned 3.1 million shares, and so the conglomerate was still one of its top five picks. Eagle Capital Management, managed by Boykin Curry, reported owning 4.6 million shares of the stock (research more stocks that Eagle owns). 3M carries trailing and forward P/E multiples of 16 and 14, respectively, though the business is not likely to see significant growth.

Baker Hughes Incorporated (NYSE:BHI). Wachenheim and his team kept their position in the $18 billion market cap oil and gas drilling equipment and services company about constant between July and September. The stock trades at only 13 times trailing earnings; while this might seem like an excellent opportunity given high drilling activity in the U.S., the company’s net income has actually been down. Billionaire Kerr Neilson’s Platinum Asset Management initiated a position in Baker Hughes during the third quarter of 2012.

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