Bourgeon Capital Management Reveals Top Picks for Q3, With JPMorgan Chase & Co. (JPM) Leading the Pack

#3. Cisco Systems Inc. (NASDAQ:CSCO)

 – Shares Owned by Bourgeon Capital (as of June 30): 179,800

 – Value of Bourgeon Capital’s Holding (as of June 30): $5.16 Million

The investment firm founded by John A. Zaro upped its position in Cisco Systems Inc. (NASDAQ:CSCO) by 5% during the second quarter, to 179,800 shares valued at $5.16 million on June 30. UBS analysts recently reiterated their ‘Buy’ rating on the networking giant, saying that the company has a “significant head start” over industry peers in Wi-Fi networking equipment due to the acquisition of Meraki, a leader in cloud-controlled Wi-Fi, routing and security. UBS analysts, who have a price target of $32 on Cisco Systems, said the company is the leader in the Cloud Wi-Fi market with a share of approximately 75%. The Enterprise Wi-Fi market grew by mid-single digits last year, but the segment’s growth is anticipated to accelerate by 11% annually through 2020. Cisco Systems has seen its market value increase by 12% since the beginning of 2016. Donald Yacktman’s Yacktman Asset Management was the owner of 28.15 million shares of Cisco Systems Inc. (NASDAQ:CSCO) at the end of June.

#2. Weyerhaeuser Co (NYSE:WY)

 – Shares Owned by Bourgeon Capital (as of June 30): 176,632

 – Value of Bourgeon Capital’s Holding (as of June 30): $5.26 Million

Bourgeon Capital Management owns 176,632 shares of Weyerhaeuser Co (NYSE:WY) as of June 30, worth $5.26 million. The timberlands-focused REIT has seen the value of its stock increase by 8% since the start of the year. In early-May, Weyerhaeuser agreed to sell its Cellulose Fibers pulp mills to International Paper Company (NYSE:IP) for $2.2 billion in cash. The deal involved five pulp mills and two modified fiber mills that produce pulp used to make various products such as diapers and tissues. The transaction did not include the company’s liquid packaging board facility or newsprint and publishing papers venture. Weyerhaeuser ended up selling its liquid packaging board business for $285 million in cash in mid-June. Charles Paquelet’s Skylands Capital owns 54,620 shares of Weyerhaeuser Co (NYSE:WY) as of the end of the second quarter.

#1. JPMorgan Chase & Co. (NYSE:JPM)

 – Shares Owned by Bourgeon Capital (as of June 30): 97,191

 – Value of Bourgeon Capital’s Holding (as of June 30): $6.04 Million

JPMorgan Chase & Co. (NYSE:JPM) represents the largest position in the Connecticut-based firm’s pool of holdings as of the end of the June quarter, accounting for 3.9% of the value of the firm’s equity portfolio. Bourgeon Capital upped its JPMorgan stake by 2% during the second quarter to 97,191 shares valued at $6.04 million on June 30. Worries that consumers are having a harder time curing later stage delinquencies has put some pressure on the biggest U.S. bank by assets and the overall industry as well. Precisely, credit concerns related to credit card, auto and multi-family lending could eventually result in increased net charge-offs for U.S. lenders. JPMorgan’s second quarter net revenue was $25.2 billion, up by 3% year-over-year, while its net income was $6.2 billion, relatively flat compared to the same quarter of 2015. JPMorgan shares are down by 3% this year. Ken Fisher’s Fisher Asset Management owns nearly 14.00 million shares of JPMorgan Chase & Co. (NYSE:JPM) as of June 30.

Disclosure: None