In this article, we discuss the top 3 stock picks of Michael Burry. If you want to read our detailed analysis of these stocks, go directly to the Top Stock Picks of Michael Burry.
3. CoreCivic, Inc. (NYSE:CXW)
Number of Hedge Fund Holders: 15
CoreCivic, Inc. (NYSE:CXW) owns and runs correctional and detention facilities. The company has a market cap of $1.1 billion and posted more than $1.9 billion in revenue last year. It recently beat market estimates on earnings for the third quarter.
Latest filings show that Scion Asset Management is long on 412,126 shares in CoreCivic, Inc. (NYSE:CXW) worth more than $3.6 million, representing 8.79% of the portfolio.
At the end of the third quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $84 million in CoreCivic, Inc. (NYSE:CXW), up from 13 in the previous quarter worth $97 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Mason Capital Management is a leading shareholder in CoreCivic, Inc. (NYSE:CXW) with 6 million shares worth more than $53 million.
2. NOW Inc. (NYSE:DNOW)
Number of Hedge Fund Holders: 18
NOW Inc. (NYSE:DNOW) distributes energy and industrial products for petroleum refining. According to the latest 13F data, the fund holds a stake in the firm worth more than $1.1 million, consisting of 150,000 shares.
In November, Stephens analyst Tommy Moll upgraded NOW Inc. (NYSE:DNOW) stock to Overweight from Equal Weight with a price target of $12, backing the firm to improve profitability and show continued progress through 2022.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in NOW Inc. (NYSE: DNOW) with 5.3 million shares worth more than $40 million.
At the end of the third quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $81 million in NOW Inc. (NYSE:DNOW), compared to 22 in the previous quarter worth $107 million.
In its Q3 2020 investor letter, Palm Valley Capital, an asset management firm, highlighted a few stocks and NOW Inc. (NYSE:DNOW) was one of them. Here is what the fund said:
“NOW is a 2014 spinoff from National Oilwell Varco and has a 150-year legacy as a distributor to the oil and gas and industrial markets. Through a vast network of 245 locations, NOW’s 300,000 SKU product offering addresses all segments of the energy value chain, from upstream E&Ps to midstream infrastructure to downstream refining, in addition to industrial end markets including chemicals, mining, utilities, and manufacturing. When energy companies reduce activity, NOW suffers. However, it has streamlined its business since the last oil and gas downturn and expects reduced operating losses this round. As of June 30th, NOW had $269 million of cash and no debt ($497 million market cap), although if demand recovers as we expect, some cash will be reinvested in working capital. The stock is currently selling for 66% of tangible book value.
Pason and NOW represent our fourth and fifth investments in the energy sector. The active rig count in the U.S. is at all-time lows. When considering our timing, we concluded, if not now, when? Our largest energy holding is Helmerich & Payne, the nation’s largest drilling contractor. It’s selling for half of book value. We believe the financial strength of our holdings is far above the typical energy company. Even so, we have kept our exposure to the energy sector in check given our concerns about the overall economy.”
1. SCYNEXIS, Inc. (NASDAQ:SCYX)
Number of Hedge Fund Holders: 6
SCYNEXIS, Inc. (NASDAQ:SCYX) is a biotech firm based in New Jersey. The company posted earnings for the third quarter on November 10, beating expectations on earnings per share and revenue by $0.67 and $0.14 million, respectively.
The hedge fund of Michael Burry entered the fourth quarter of 2021 with more than 174,030 shares of SCYNEXIS, Inc. (NASDAQ:SCYX) in the portfolio worth more than $922,000.
New York-based firm Kingdon Capital is a leading shareholder in SCYNEXIS, Inc. (NASDAQ:SCYX) with 637,048 shares worth more than $3.3 million.
At the end of the third quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $7.6 million in SCYNEXIS, Inc. (NASDAQ:SCYX), compared to 8 in the previous quarter worth $19 million.
You can also take a peek at 10 Cheap Small-Cap Stocks to Buy and 10 Penny Stocks with Upcoming Growth Catalysts.
