Michael Price’s Cheap Stock Picks Include Intel (INTC)

Page 1 of 2

Michael Price founded MFP Investors in 1998, two years after selling Heine Securities for $670 million. We have gone through the fund’s 13F filing from the end of September; though that’s obviously some time ago, our analysis of MFP’s filings indicates that most positions don’t change much over the course of a quarter and so many of them are probably still active. In any case we can screen for value stocks that the fund reported owning and take a closer look to see if these companies should be researched further. Here are five of Price’s top ten stock picks from MFP’s most recent 13F filing (see more stocks the fund owned); each of these five stocks had both trailing and forward P/E multiples of 15 or lower.

Michael Price

MFP increased its stake in Intel Corporation (NASDAQ:INTC) by 23% to a total of 1.6 million shares, making the chipmaker the second largest holding by market value disclosed in the 13F. The industry has been doing poorly recently, and while Intel has not been hit has hard as peer AMD the company did report a 14% decline in earnings for the third quarter of 2012 compared to the same period in 2011. Renaissance Technologies, founded by billionaire Jim Simons, owned 19 million shares at the end of September (check out Renaissance’s stock picks). Intel trades at 11 times consensus 2013 earnings, and may be worth further consideration.

The fund kept its position in Alleghany Corporation (NYSE:Y) the same at about 90,000 shares. Alleghany is a $6 billion market cap insurance company; the forward P/E here is 15, and the stock also trades at a slight discount to book value with a P/B ratio of 0.9. Our database of 13F filings shows that Marty Whitman’s Third Avenue reported a position of about 290,000 shares. In addition, the stock has a beta of 0.6 and so Alleghany isn’t very sensitive to broader market conditions. We might compare it to its peers, as we might be able to find cheaper stocks in the same industry.

Another insurance company, Symetra Financial Corporation (NYSE:SYA), was one of the largest holdings in MFP’s portfolio (though Symetra is a life insurer as opposed to property and casualty insurance as with Alleghany). The stock is up 48% in the last year, and Symetra reported a double-digit earnings growth rate in its most recent quarterly report compared to the same period in the previous year. Highfields Capital Management, which is managed by Jonathon Jacobson, had 4.2 million shares in its portfolio (find Highfields’ favorite stocks).The forward P/E of 9 and P/B ratio of 0.5 suggest that it could be a good value.

Page 1 of 2
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

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

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands 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!