Editor’s Note: Related tickers: Palo Alto Networks Inc (NYSE:PANW), Priceline.com Inc (NASDAQ:PCLN), Wynn Resort, Limited (NASDAQ:WYNN), Adobe Systems Incorporated (NASDAQ:ADBE), athenahealth, Inc (NASDAQ:ATHN)
Criterion Capital Management is a San Francisco-based investment adviser specializing in global technology, media and telecommunications. The fund is managed by Chris Lord, David Riley and Tomoko Fortune. The fund recently filed its latest 13F with the SEC, describing some of its main investments during 2013’s first quarter.
The tippy top
The largest equity position in Criterion’s 13F is networking and communications company Palo Alto Networks Inc (NYSE:PANW). During 2013’s first quarter, the fund expanded its position in the stock by more than 2.35 times to $143 million. The company trades with a negative EPS of -$0.14 and a high forward P/E ratio of 112.98. Palo Alto Networks Inc (NYSE:PANW) shows a 1.06 beta and the company earned $7.24 in revenue per share, while increasing its overall top line by 70% year-over-year (in its latest quarterly report).
Image: Palo Alto Networks Inc (NYSE:PANW)
The best of the rest
Next up is Priceline.com Inc (NASDAQ:PCLN); the fund saw the size of its position increase by 46.58% last quarter from the previous quarter, when we account for the stock’s modest year-to-date gains. The travel-services company has been a generally successful investment for all shareholders over the past few years, with constent EPS gains in three consecutive years. Priceline.com Inc (NASDAQ:PCLN) trades with a trailing profit margin of 26.98% and a trailing ROA 21.94%, both very attractive for bulls like Criterion.
Criterion Capital made Wynn Resort, Limited (NASDAQ:WYNN) its third biggest investment, increasing its holding by 267,400 to 1,101,540 shares last quarter. Meanwhile, the value of the position grew by 51.04% to $127 million at the end of Q1. The casino resort and development company trades at a trailing P/E of 24.97, with a modest forward estimate of 19.99 and a beta of 1.62. Shares have jumped by 22.60% over the past twelve months, while quarterly revenue and earnings growth rates have last clocked in at 5% and 44% respectively.
Adobe Systems Incorporated (NASDAQ:ADBE), the software company, is fourth on this list, with an increase in the number of shares from 547,600 to 2,821,600 last quarter. The value of the holding is at $122.782 million, a rise of 43.30% from the prior quarter. Adobe Systems Incorporated (NASDAQ:ADBE) trades at a P/S of 5.21, with an average-level forward P/E of 24.84. Adobe Systems Incorporated (NASDAQ:ADBE)’s annual EPS estimates are $1.44, and Wall Street analysts have mixed recommendations on the stock, with 14 of 27 opting for a Hold, 7 tagging it as a Buy and 4 calling for a Strong Buy.
Criterion Capital increased its stake in athenahealth, Inc (NASDAQ:ATHN) by 363,900 shares to 1,225,498, with the value of the position rising by 88.33% to $118.922 million. The Massachusetts-based company trades at a P/E ratio of 189.40 with the forward estimate being much lower at 54.04. At a beta of 0.78 and a 19.43% annual growth rate, the company keeps a trailing profit margin of 3.77% and revenue per share is a solid $12.48. Analysts have a mean recommendation of 2.6 out of 5 for the stock. athenahealth, Inc (NASDAQ:ATHN) has beaten the Street’s EPS estimates for the last four quarters.