Ken Heebner’s High Upside Potential Stock Picks Include Citigroup Inc (C)

According to the 13F, Heebner had 1.3 million shares of $7.5 billion market cap packaging products company Rock-Tenn Company (NYSE:RKT). In its most recent quarter, Rock-Tenn Company (NYSE:RKT)’s revenue was essentially flat compared to the same period in the previous fiscal year (net income was up, but at an unsustainable rate). Still, the stock carries trailing and forward P/Es of 14 and 12 respectively, and so the company does not need to generate much growth in order to justify the current valuation. It may be worth watching for further developments or researching further if an investor has an interest in the industry.

Hertz Global Holdings, Inc. (NYSE:HTZ), which rents construction and industrial equipment as well as cars, was another of the fund’s high upside potential picks as the filing disclosed a new position of 4.9 million shares. Hertz Global Holdings, Inc. (NYSE:HTZ)’s fortunes are closely tied to those of the broader economy, as shown by the stock’s beta of 2.8. Earnings are expected to increase considerably from their levels over the trailing four quarter period, resulting in a five-year PEG ratio of 0.5. Last quarter the company’s revenue came in 24% higher than its levels in the first quarter of 2012.

We think that Hertz Global Holdings, Inc. (NYSE:HTZ) is an interesting growth play, and would say the same for Whirlpool Corporation (NYSE:WHR) though of course we’d want to more closely check out each of these companies before buying. Delta Air Lines, Inc. (NYSE:DAL) also looks somewhat appealing, though in that case the low PEG ratio is likely less due to high growth prospects and more due to investors pricing in a number of downside risks. Citigroup Inc (NYSE:C) also looks like a potential value going by either book or earnings figures, although it is not too out of place compared to its peer banks.

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