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

#2. Johnson & Johnson (NYSE:JNJ)

– Shares owned by Lucas Capital Management as of June 30: 48,279

– Value of Lucas Capital Management’s holding as of June 30: $5.86 Million

Lucas Capital Management trimmed its position in Johnson & Johnson (NYSE:JNJ) by 4% during the April-to-June period, ending the second quarter with 48,279 shares valued at $5.86 million shares. The position made up 4.2% of the investment firm’s portfolio. In late July, analysts at Deutsche Bank raised their price target on the pharmaceutical giant to $142 from $125 and reiterated their ‘Buy’ rating, citing its diversified portfolio, healthy balance sheet, and improvement across all divisions. “J&J is a master of its own destiny with the luxury of time on its size as the business today is strong and outlook bright”, said Deutsche Bank analysts in a fresh analyst note. Moreover, Deutsche Bank considers J&J a “beacon of safety” relative to industry peers, which warrants the company’s stock a premium valuation. Johnson & Johnson, viewed as one of the most innovative companies in the healthcare space, has seen its market capitalization spike by 21% since the beginning of the year. Donald Yacktman’s Yacktman Asset Management owns 6.67 million shares of Johnson & Johnson (NYSE:JNJ) as of the end of the second quarter.

#1. Sabine Royalty Trust (NYSE:SBR)

– Shares owned by Lucas Capital Management as of June 30: 202,525

– Value of Lucas Capital Management’s holding as of June 30: $6.77 Million

Sabine Royalty Trust (NYSE:SBR) was the largest position in Lucas Capital Management’s pool of holdings at the end of June, accounting for 4.8% of the investment firm’s portfolio. The New Jersey-based asset manager upped its stake in the company by a mere 1,891 shares during the June quarter to 202,525 shares. The increased stake was valued at $6.77 million on June 30. Sabine Royalty Trust, which holds royalty and mineral interest in various producing and proved underdeveloped oil and gas properties, has seen its market value increase by 35% so far in 2016. The company’s royalty income for the first quarter of 2016 decreased by approximately 54% year-over-year to $6.97 million, reflecting a decrease in the pricing of both natural gas and oil, as well as decreases in production of both oil and natural gas. Sabine Royalty Trust recently declared a monthly cash distribution of $0.1346 per unit for July, which yields 6.39% annually. Murray Stahl’s Horizon Asset Management owned roughly 45,000 shares of Sabine Royalty Trust (NYSE:SBR) at the end of March.

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