Even though the future of Cohen and SAC remains uncertain, it doesn’t mean that Cohen’s biggest stock purchases during the first quarter should be shunned. Cohen has a number of interesting stocks that he is bullish on–let’s see why (check out Cohen’s favorite small caps).
Amazon.com, Inc. (NASDAQ:AMZN) trades at a P/E that’s well above its peers and above the S&P 500. Even with a five-year annualized expected EPS growth rate of 37%, Amazon’s PEG ratio is upwards of 5.6. Amazon also has a P/B multiple of nearly 15 times, a 135% premium to the peer group. The valuation does appear to be rich, but Amazon still has sizable interest from hedge funds, with 58 hedge funds owning the stock going into 2013. Billionaire Ken Fisher of Fisher Asset Management had the most valuable position in Amazon, worth some $613 million, accounting for 1.7% of its total 13F portfolio (check out Fisher’s top picks).
Part of Suncor Energy Inc. (USA) (NYSE:SU)’s advantage is its significant oil-sands platform, with long-lived oil-sands reserves. The oil company also has an asset base that includes conventional reserves at offshore Eastern Canada and the North Sea. The company plans on increasing production to more than 1 million barrels of oil-equivalent per day by 2020, where oil sands production will grow by 10% and company-wide production will grow by 8% over the next 10 years.
Suncor Energy Inc. (USA) (NYSE:SU) trades at a 19.2 times trailing P/E, which is above some of its major peers. However, on a forward P/E basis, Suncor trades at only 9.3 times, suggesting the market is underestimating the company’s interim growth capabilities.