United Rentals, Inc. (URI) & More: Billionaire Glenn Dubin’s Small Cap Picks

Dubin and his team disclosed ownership of 2.2 million shares of Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), which provides tour services in China. Ctrip is another stock whose price is dependent on future growth, with a trailing earnings multiple of 26. While revenue grew 29% in its most recent quarter compared to the same period in the previous year, earnings fell by 24%. Bain Capital’s long/short equity hedge fund Brookside Capital owned 5.6 million shares according to its own 13F (check out Brookside’s favorite stocks).

It looks to us like Ctrip and EchoStar need to provide more convincing results in order for us to consider them as good prospects. Pennymac is worth considering as an income stock on the basis of its dividend yield, but income investors should be sure not to invest in too many REITs and overexpose themselves to real estate prices. SEI and United Rentals, Inc. (NYSE:URI) do look a bit speculative when we look at their valuation in terms of trailing earnings but the strength of their recent results suggest they should at least be watched through their next quarterly results.

Disclosure: I own no shares of any stocks mentioned in this article.