Billionaire Louis Bacon’s New Stock Picks Include Dell Inc. (DELL)

Bacon apparently likes Icahn’s moves: the activist has taken a large position in offshore driller Transocean LTD (NYSE:RIG) with Bacon’s fund reporting a new stake of 825,000 shares as of the end of March. Revenue grew only 4% in the first quarter of 2013 versus a year earlier, but the sell-side is quite bullish on the business: their consensus earnings forecasts imply a forward P/E of 9 and a five-year PEG ratio considerably less than 1. As such we’d be interested in learning more about the company, though other offshore drillers might also be intriguing.

Time Warner and Lowe’s Companies, Inc. (NYSE:LOW) are both industry plays in our mind, though we aren’t confident in these stocks given their recent quarterly reports. Transocean LTD (NYSE:RIG) looks like it could be a good value, particularly if the company actually does grow its earnings as analysts expect, and at the very least it should be watched to see if this quarter’s numbers reflect a stable business. Morgan Stanley also stands out for its decent recent performance as well as its discount to book, and we think it could be considered as a potential value stock.

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