5/2/2013
For those of you that don’t know, billionairesportfolio.com is the only website in the world that sends out free real-time text alerts whenever a billionaire investor buys 5% or more of a stock.
Today I’d like to share a new text alert we just sent to our members. Billionaire hedge fund, Jana Partners, a legendary activist hedge fund, just disclosed a 9.2% stake in Oil States International, symbol (OIS).
This is a huge stake in a large cap oil and gas equipment company. My belief is that Barry Rosenstein, the Wharton MBA and head of Jana, will try and break up the company or sell it to the highest bidder. I think the market shares this view. The stock is up more than 4% today.
Jana Partners is just one of the many top performing hedge funds and billionaire investors we follow in my research service, The Billionaires Portfolio. It’s the only investing service of its kind that allows the everyday investor to participate in the same stock picks as the world’s richest, most powerful investors.
Every week, I scan hundreds of stocks that these exclusive investors are buying, and I only select the ones that have the biggest home-run potential. I define these as stocks that can go up 100% to 200% in a few months, or 500% to 1000% in a year.
Our current portfolio is loaded up with stocks that have the ability to produce these returns. We’ve taken one double off of the table this year, we have two doubles on the books, and I think we’ll have at least one three or four-bagger in the coming months.
Consider this: We currently own a stock that sells for around $2. It has more cash on its balance sheet than the entire company’s market value. And it is owned by one of the world’s best hedge funds. This hedge fund owns 15% of this company, and has been pushing on management to cut costs and increase their profit margins.
Put simply, this fund is imposing its will on the company, to make it profitable. With that, I truly believe since the stock is so undervalued that it could go back to its 2011 high of $10.50. That would be a 400% plus return from this stock’s current share price. That’s 400% upside on a stock that is selling for less than the cash on its balance sheet.
To find out the name of this stock, the symbol, and the hedge fund who owns it, subscribe here.
Also, an update from my previous blog post on Apple …
For those of you that frequently read this blog, you’ll know I’ve been quite bearish on Apple. But I now think Apple has turned the corner. Remember though, Apple is a buy if it closes over $445 to$450 – not trades above that price, but closes above it.
All the Best
Will Meade
Editor of The Billionaires Portfolio