Ainslie cut his stake in $4.5 billion market cap homebuilder NVR, Inc. (NYSE:NVR) by about 50% but still had over 100,000 shares in his portfolio at the beginning of April. A strong housing market helped power revenue up 28% in NVR, Inc. (NYSE:NVR)’s most recent quarterly report compared to the same period in the previous year, and net income increased by 74%. Markets have already priced in some amount of growth, as shown by the fact that the stock trades at 24 times trailing earnings, though we’d be interested in following NVR, Inc. (NYSE:NVR) to see if its high growth continued in Q2.
According to the 13F, Maverick owned 2.1 million shares of Qlik Technologies Inc (NASDAQ:QLIK) at the end of the first quarter of 2013. The enterprise software company saw a loss last quarter, in terms of adjusted earnings, and net income has been quite low on a trailing basis compared to Qlik Technologies Inc (NASDAQ:QLIK)’s valuation. Analysts predict that earnings per share will increase both this year and next year but the stock still looks expensive according to their forecasts at a forward earnings multiple of 45. As a result we would avoid the stock.
MGIC Investment Corp. (NYSE:MTG) also seems a bit speculative to us, but Ainslie’s other three picks seem to at least be worthy of placing on a watchlist. Skyworks Solutions Inc (NASDAQ:SWKS), NVR, and Community Health Systems (NYSE:CYH) are all dependent on future growth given where they currently trade, but analysts seem optimistic enough on Skyworks that we suppose the company is worth checking out- there is certainly enough room for the company to underperform expectations and still prove undervalued. Community Health Systems (NYSE:CYH) also seems within striking range of being a value play, although we suppose the same is true for some of its peers.
Disclosure: I own no shares of any stocks mentioned in this article.