Top Traders' Stocks Under $20
Updated from 9:47 a.m. EST
As a follow-up to an article last week's column George Soros' Under-$15 Stocks, which featured the lowest-priced stocks held by the well-known investor, Stockpickr.com has combed through all the stockholdings of 12 top traders and compiled a portfolio of their lowest-priced holdings.
This portfolio of Low-Price Stocks of the Top Traders features stocks that trade for less than $18 a share.
Nelson Peltz, the corporate raider and activist whose hedge fund returned 37% in 2006, owns several stocks that trade below $10 a share. He holds shares in Chemtura (CEM), shares of which trade for less than $8.Chemtura has three divisions, pool and spa products, crop protection products and specialty chemicals. The chemicals company, which is set to report earnings after the close, just announced that it's raising the prices on the polymer additives used by the rubber industry. The stock has a forward price-to-earnings (P/E) ratio of 12, a P/E-to-growth (PEG) ratio of 2.2 and pays a yield of 2.7%. Chemtura stock is also own by the San Francisco-based activist hedge fund Steel Partners. From the decade beginning 1995, the fund never had a down year and generated returns over 30% for three of those years. Steel Partners also owns Rowan Cos (RDC), with a PEG of 0.7, Pride International (PDE), with a 0.7 PEG, and Brinks (BCO), with a 1.3 PEG. Motorola (MOT) is the lowest-priced stock owned by Prince Al-Waleed, the international trader who is a member of the Saudi Royal Family. He has a net worth of roughly $20 billion, making him one of the 10 richest people in the world, according to Forbes. Last month, Motorola reported an 80%-plus drop in quarterly earnings. The stock, which trades for under $12, has a forward P/E of 17, a PEG of 6.7 and a yield of 1.7%. Motorola also shows up in the portfolio of the Dodge & Cox Stock Fund, which has a four-star Morningstar rating. Dodge & Cox also holds Hewlett-Packard (HPQ), with a PEG of 0.8, Wal-Mart (WMT), which has a PEG of 1.4, and Sony (SNE), with a PEG of nearly 1. Warren Buffett's lowest-priced stock is also one of the highest priced names in the Low-Price Stock portfolio -- Comcast (CMCSA). The cable company just announced plans to launch a dividend for shareholders and cut back hefty executive pay. The stock has a P/E of 25 and a PEG of 1.2. Comcast is also owned by Eton Park Capital, a $5.5 billion hedge fund managed by Eric Mindich, formerly the youngest partner at Goldman Sachs. Eton Park also holds Goodyear Tire & Rubber (GT), with a PEG of 0.5 and Hospira (HSP), with a 1.6 PEG. To see more low-price stocks from the portfolio, check out the Low-Price Stocks of the Top Traders at Stockpickr.com.
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