5 New Stock Ideas For Q4 From Trellus Management

#2 PPG Industries, Inc. (NYSE:PPG)

– Shares Owned by Trellus Management (as of September 30): 10,980
– Value of Trellus Management’s Shares (as of September 30): $963,000
– Percentage of Trellus Management’s Public Equity Portfolio (as of September 30): 1.41%

PPG Industries, Inc. (NYSE:PPG) slid by over 25% during the third quarter, making it an attractive investment for Trellus Management. A prolonged swoon hit the stock following its second quarter earnings in mid-July, which delivered record earnings of $1.67 per share, but came up short on revenue estimates by $60 million, at $4.04 billion. The stock’s turnaround has been a quick and successful one thus far, as shares have rebounded by over 15% in the fourth quarter, despite another earnings report that missed on revenue expectations, even more widely this time, by $150 million, which was impacted by currency exchange headwinds. While the Industrial Coatings segment saw weakness in China, it was offset by growth in both the U.S and Europe. Billionaires Ken Griffin and Daniel Och were major investors of PPG Industries, Inc. (NYSE:PPG) as of June 30, holding 5.11 million shares and 2.93 million shares respectively.

#1 Anheuser Busch Inbev SA (ADR) (NYSE:BUD)

– Shares Owned by Trellus Management (as of September 30): 13,600
– Value of Trellus Management’s Shares (as of September 30): $1.45 Million
– Percentage of Trellus Management’s Public Equity Portfolio (as of September 30): 2.12%

Anheuser Busch Inbev SA (ADR) (NYSE:BUD) rests comfortably atop the list, and its inclusion is not a big surprise for an event-driven fund like Trellus Management, given the merger talks which broke out between Anheuser Busch and SABMiller plc (ADR) (OTCMKTS:SBMRY) late in the third quarter. The deal was finally consummated in the middle of October, though it will still face challenging antitrust concerns given the size of the merger, which would join the world’s two largest brewers and give them 30% global market share (and much higher than that in some areas, including the U.S). Shares of Anheuser Busch Inbev SA (ADR) (NYSE:BUD) have gained over 9% in the fourth quarter.

Disclosure: None