Lucas Capital Management Reveals Top Picks for Q3; Apple Inc. (AAPL) and Johnson & Johnson (JNJ) Among Them

#4. Dorchester Minerals LP (NASDAQ:DMLP)

– Shares owned by Lucas Capital Management as of June 30: 380,578

– Value of Lucas Capital Management’s holding as of June 30: $5.49 Million

The New Jersey-based investment firm reduced its exposure to Dorchester Minerals LP (NASDAQ:DMLP) by 4% during the three-month period ending June 30 to 380,578 shares. The reshuffled stake was worth $5.49 million at the end of the second quarter and accounted for 3.9% of the firm’s portfolio. The Dallas-based owner of producing and non-producing oil and natural gas mineral, royalty, overriding royalty, net profits, and leasehold interests located in 25 states has seen its market capitalization gain 47% thus far in 2016. The company’s first-quarter net operating revenues decreased by 30% year-on-year to $6.13 million, reflecting decreases in sales prices that were partially offset by an increase in lease bonus income. Dorchester Minerals recently announced a quarterly cash distribution of roughly $0.258 per common unit, which equates to a current annual dividend yield of 5.46%. Royce & Associates, founded by Chuck Royce, had 544,119 shares of Dorchester Minerals LP (NASDAQ:DMLP) in its portfolio at the end of March.

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#3. Apple Inc. (NASDAQ:AAPL)

– Shares owned by Lucas Capital Management as of June 30: 59,231

– Value of Lucas Capital Management’s holding as of June 30: $5.66 Million

The energy-focused investment firm owned 59,231 shares of Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, 3,176 shares less than at the end of the first quarter. The Apple position was valued at $5.66 million at the end of the June quarter, constituting 4.0% of the firm’s entire pool of holdings. Value-oriented investors like billionaire Warren Buffett would argue that the iPhone maker represents an attractive value play, as Apple shares are currently changing at around 11.9-times expected earnings and offer a dividend yield of 2.17% annually. Just recently, analysts at Daiwa Securities downgraded Apple to ‘Outperform’ from ‘Buy” while raising their price target on the stock to $117 from $109, citing the recent gain in the value of Apple shares and the company’s transition to a services and content company from a digital consumer electronics company. The Cupertino-based company’s iPhone unit sales fell 15% year-over-year to 40.4 million in its latest quarter, partially reflecting weakness on the Chinese market due to the depreciation of the yuan against the U.S. dollar and rising competition from local smartphone makers. Christopher R. Hansen’s Valiant Capital has 999,800 shares of Apple Inc. (NASDAQ:AAPL) among its holdings as of June 30.

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