In this article, we will discuss the top 5 stock picks of Dan Kozlowski’s Plaisance Capital. If you want to read our detailed analysis of these stocks, you can go directly to the Top 10 Stock Picks of Dan Kozlowski’s Plaisance Capital.
5. Carnival Corporation & plc (NYSE:CCL)
Plaisance Capital’s Stake Value: $3,611,000
Percentage of Plaisance Capital’s 13F Portfolio: 1.79%
Number of Hedge Fund Investors: 31
Carnival Corporation & plc (NYSE:CCL) is one of the two shipping cruise stocks in Dan Kozlowski’s Plaisance Capital’s portfolio, the second being Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH). Both these positions were initiated in Q2 2021. Carnival Corporation & plc (NYSE:CCL) has ten cruise brands under its umbrella that cover various regions and cater to different segments of the cruising industry with a fleet of over 100 vessels. The Miami, Florida-based company was founded in 1972. In the second quarter, Plaisance Capital owned 137,000 shares in Carnival Corporation & plc (NYSE:CCL), worth $3.61 million.
Investment management firm ClearBridge Investments mentioned Carnival Corporation & plc (NYSE:CCL) in its Q1 2021 investor letter. Here’s what the fund said:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Carnival was the actions the company took to extend out their balance sheets until travel resumed. Both should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
4. Enterprise Products Partners L.P. (NYSE:EPD)
Plaisance Capital’s Stake Value: $5,690,000 million
Percentage of Plaisance Capital’s 13F Portfolio: 2.83%
Number of Hedge Fund Investors: 28
Enterprise Products Partners L.P. (NYSE:EPD) is a Houston, Texas-based midstream oil and gas transportation company.
For the third quarter of 2021, Enterprise Products Partners L.P. (NYSE:EPD) was able to surpass the revenue estimates by a significant margin of $2.33 billion as the business started to return to pre-COVID levels. The company also reported an EPS of $0.54 for the third quarter, beating the analysts’ estimate by $0.03.
Out of the 873 elite funds being tracked by Insider Monkey, 28 hedge funds held a stake worth $246 million in Enterprise Products Partners L.P. (NYSE:EPD) at the end of Q2 2021, up from 26 positions in the preceding quarter.
ClearBridge Investments shared its stance on Enterprise Products Partners L.P. (NYSE:EPD) in its Q1 2021 investor letter:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
3. Skechers U.S.A., Inc. (NYSE:SKX)
Plaisance Capital’s Stake Value: $6,354,000
Percentage of Plaisance Capital’s 13F Portfolio: 3.16%
Number of Hedge Fund Investors: 35
Skechers U.S.A., Inc. (NYSE:SKX), founded in 1992, is the third-largest athletic footwear company in the United States. Based out of Manhattan Beach, California, the company has over 4,000 stores across the world. Plaisance Capital held 127,520 shares in Skechers U.S.A., Inc. (NYSE:SKX) in Q2 2021. The market value of the shares was close to $6.35 million.
On November 2, John Staszak at Argus lowered the rating on Skechers U.S.A., Inc. (NYSE:SKX) from Buy to Hold on the back of supply chain issues. He further added that the stock would become a buy if its stock price fell below the $35 level due to non-fundamental reasons. Skechers has been a part of Plaisance Capital’s portfolio for the past seven quarters.
2. Noodles & Company (NASDAQ:NDLS)
Plaisance Capital’s Stake Value: $8,571,000
Percentage of Plaisance Capital’s 13F Portfolio: 4.26%
Number of Hedge Fund Investors: 18
Noodles & Company (NASDAQ:NDLS) is a fast-casual restaurant founded in 1995 offering made-to-order noodle and pasta dishes along with salads, soups, sides, and desserts from over 400 locations across the US. The chain is considered one of the healthiest offerings in the fast-casual dining industry.
18 hedge funds out of the 873 being tracked by Insider Monkey have held a stake in Noodles & Company (NASDAQ:NDLS) since the first quarter of 2021.
1. Pure Cycle Corporation (NASDAQ:PCYO)
Plaisance Capital’s Stake Value: $54,572,000
Percentage of Plaisance Capital’s 13F Portfolio: 27.18%
Number of Hedge Fund Investors: 10
Pure Cycle Corporation (NASDAQ:PCYO) is a diversified innovative organization involved in land and water development along with oil and gas mineral interest across the state of Colorado. The US housing sector is undergoing a boom as millennials are looking for starter homes and Colorado happens to be one of the key states in this regard. The company is currently leading the master planning of the Sky Ranch community, where it is offering commercial, residential, light industrial lots and retail spaces along the I-70 corridor in Colorado.
Dan Kozlowski’s Plaisance Capital has a stake of $54.57 million in the company.
Maran Capital Management mentioned Pure Cycle Corporation (NASDAQ:PCYO) in its Q2 2021 investor letter. Here’s what the investment management firm said:
“Pure Cycle owns approximately 5,000 single-family housing lot equivalents and a water utility backed by meaningful water rights in the Denver metro area.
I attended Pure Cycle’s investor day last week. It was great to see the progress the company has made at its Sky Ranch community (see photo below). I continue to believe that PCYO has $10+ per share of real estate value and $10+ per share of water value, and that each are being actively monetized (the land at $100k+/lot, and the water via $30k+ tap fees, each of which are appreciating rapidly). I believe the market is still missing a number of critical components of the PCYO story, including:
- A respected nonprofit intends to spend $50mm to build a charter school in PCYO’s community, which should dramatically increase the value of PCYO’s remaining lots;
- value uplift as PCYO starts to develop commercial acreage;
- optionality on additional water sales to the energy industry;
- numerous off-balance-sheet hidden assets, including the rights to a large reservoir; and
- additional capital-allocation-driven upside, including value-accretive land purchases.”
You can also take a peek at the 10 Stocks That Beat Profit Expectations and 11 Best Hotel Stocks To Invest In.
