Billionaire Ray Dalio’s Trades for Q2 Include Buying Oracle Corporation (ORCL)

Lockheed Martin. After a number of tech companies- including those we’ve mentioned and EMC- the largest single-stock holding in the fund’s portfolio was its roughly 220,000 shares of Lockheed Martin Corporation (NYSE:LMT). The company recently reported an increase in earnings compared to the first quarter of 2012, but revenue was down slightly and there is a good deal of speculation that the business will be impacted by cuts in U.S. military spending. The trailing P/E of 12 is just a bit higher than what we see at other aerospace and defense companies. Billionaire Ken Griffin’s Citadel Investment Group reported a position of 1.2 million shares at the end of December (check out Griffin’s stock picks). Lockheed Martin pays a dividend yield of 4.5% at current prices and dividend levels.

Lockheed Martin Corporation (NYSE:LMT) might not be the best value in the aerospace industry, however, and so even with the yield it might be better to check out the company’s peers. Microsoft and Intel are potential value plays, we suppose, but we are skeptical that these companies will be able to maintain their current business going forward and with earnings multiples above 10 we wouldn’t call them “extremely” cheap; in Oracle Corporation (NASDAQ:ORCL)’s case, we think that we’d have to wait to see the company’s earnings actually growing before buying at these prices. For profit education, including Apollo, certainly looks cheap but has all of the components of a classic value trap and so we’d tread carefully when evaluating the company’s financials.

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