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Five Cheap Stocks Billionaires Are Bullish On

If there is anyone, who can show an impressive investment record it is the billionaire money managers. We set out to take advantage of their business acumen and help retail investors make affordable investments by buying cheap stocks that enjoy the support of funds led by billionaire investors. Without further ado, let us dig deeper into these companies.

Today there are dozens of tools investors can use to grade their holdings. A duo of the most under-the-radar tools are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the elite fund managers can trounce their index-focused peers by a very impressive margin (see the details here).

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#5 Brocade Communications Systems, Inc. (NASDAQ:BRCD)

– Billionaires with Long Positions (as of March 31): 6

– Value of Billionaires’ Holdings (as of March 31): $308.06 million

The stock price of the $3.9 billion communications & networking company gained 5.30%, while the number of billionaire funds from our database holding shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD) slid by one during the first quarter. The stock is trading at around 13 times earnings and sports a dividend yield of 2.28%. Brocade Communications completed the acquisition of Ruckus Wireless at the end of May, which allowed Brocade to expand in new segments of the networking market, such as 5G or the Internet of Things.

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#4 Regions Financial Corp (NYSE:RF)

– Billionaires with Long Positions (as of March 31): 7

– Value of Billionaires’ Holdings (as of March 31): $156.27 million

The number of billionaires from our database long Regions Financial inched up by one during the first three months of 2016. The stock has declined by more than 3% since the beginning of the year and has a dividend yield of 2.82%. For the second quarter, Regions Financial posted EPS of $0.21, which was in line with estimates, while revenue of $1.40 billion was $30 million ahead of analysts’ expectations. Average loans and leases went up by 4% on the year and net interest income increased by 3.4% to $848 million.

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#3 Office Depot Inc (NASDAQ:ODP)

– Billionaires with Long Positions (as of March 31): 7

– Value of Billionaires’ Holdings (as of March 31): $269.50 million

Shares of Office Depot Inc (NASDAQ:ODP) fell to a new 52-week low in mid-May after the company terminated its merger with Staples. In this way, year-to-date, the stock is down by more than 35%. For the second quarter, Office Depot reported EPS of $0.03, lower than the expected $0.06, while revenue of $3.22 billion declined by 6.4% on the year and topped the consensus estimate by some $20 million. The company also reported a 7% annual decline in sales in its North American Retail Division and a 1% decline in same-store sales, while international division sales declined by 4% to $600 million. The number of billionaire investors bullish on the company rose by two during the March quarter.

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#2 Hertz Global Holdings Inc (NYSE:HTZ)

– Billionaires with Long Positions (as of March 31): 7

– Value of Billionaires’ Holdings (as of March 31): $1.11 billion

Hertz’s stock has slid by more than 19% since the beginning of the year amid a continuous decline in revenue reported for the past several quarters. At the beginning of July, Hertz completed the spin-off of its equipment-rental business into Herc Holdings. For the second quarter, Hertz posted a loss of $0.33 per share, adjusted for the separation of the equipment-rental business, while revenue slid by 2% on the year to $2.27 billion. On the other hand, analysts had expected an adjusted profit of $0.31 and revenue of $2.27 billion.

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#1 Staples, Inc. (NASDAQ:SPLS)

– Billionaires with Long Positions (as of March 31): 8

– Value of Billionaires’ Holdings (as of March 31): $347.66 million

The number of billionaires’ funds from our database bullish on Staples fell by two during the first quarter. The failed merger with Office Depot also hurt Staples, Inc. (NASDAQ:SPLS), but strong gains in the first four months of the year offset the decline and the stock is trading just 2.96% in the red year-to-date. In June, Staples launched same-day delivery in large metropolitan areas, which should strenghten its position in eCommerce, which should help it boost sales during the back-to-school season that is about to end.

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Disclosure: None

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