At Stockpickr.com, we keep track of the
each week. Here's the perfect setup in my mind: insiders buying the stock, the company buying back its own shares and a super-investor like
also buying shares. If I can get three out of three, I'm in heaven. If I can get two out of three, or even one out of three, I'm still pretty happy about the situation, particularly if the stock is cheap in other ways as well.
Each Thursday we update the Stockpickr
portfolio, featuring the 10 stocks of the week that either had big insider purchases, newly announced buybacks or super-investors accumulating shares.
is in this week's portfolio. The consulting and outsourcing company said it will add $3 billion to its existing buyback plan, which has $1.65 billion remaining to be repurchased.
On top of increasing its buyback, ACN recently blew past the Street's expectations by recording its highest ever annual revenues and earnings per share. Fourth-quarter revenue jumped 29% to $5.11 billion along with annual revenue, which climbed 18% to $19.7 billion. EPS for the fourth quarter came in at 50 cents, while full-year EPS increased 24% to $1.97. Shareholders were also pleased to hear Accenture's board boosted its annual
dividend by 7 cents, or 20%, to 42 cents a share.
It's also good to see that a noteworthy firm like
owns Accenture. Averaging 35% annual returns since 1989, this New York-based hedge fund is considered the most successful hedge fund of all time.
When the best of the best buys a stock, it's not a bad idea to take notice. The fund also holds positions in semiconductor manufacturer
and mobile device manufacturer
Another successful fund that believes in Accenture is the
. Managed by Robert Smith and T. Rowe Price, the fund has been awarded a Morningstar rating of five stars. The fund particularly likes companies that have the ability to pay increasing dividends through strong cash flows.
So we have a buyback, record-high earnings and two well-known investors in the stock. It may be time to take a closer look at Accenture.
Next on the list is
. On a conference call, the data storage giant said it will double its buyback plan from $1 billion to $2 billion.
The Hopkinton, Mass.-based company said third-quarter earnings surged 77% as net income rose to $492.9 million, or 23 cents a share, up from $283.7 million or 13 cents a share in the same period last year. Revenue was also impressive, jumping 17% to $3.3 billion, beating forecasts of $3.2 billion.
A portion of the stellar earnings came from EMC selling 6 million shares of its most lucrative asset,
for a one-time gain of $115.2 million. Without the sale, EMC still would have earned an impressive $377.8 million, or 17 cents a share. VMware is EMC's virtual infrastructure spinoff, which has nearly quadrupled in share price since its IPO in August. EMC still owns 86% of VMware, which recently recorded quarterly earnings that absolutely crushed estimates.
It's also good to see that a fund like
recently opened a position in EMC. This $15-billion firm focuses on strategies that include global macro trading, fundamental equity investing, emerging markets, venture capital and technical trading systems.
Major drug manufacturer
is another one of the firm's holdings.
Another owner of EMC that's worth mentioning is
. This $4.5-billion fund is run by Stanley Druckenmiller. Druckenmiller learned his investment strategies from his hero, the legendary
So we have a buyback, record earnings and two noteworthy funds buying shares. It may be time to do some homework on EMC.
And finally, we have
rounding out this week's portfolio. Through December 2010, the Foster City, CA.-based company said it will repurchase up to $3 billion in common stock on a time-to-time basis.
Recently, the drug maker said solid HIV drug sales helped spark strong third-quarter earnings. The company, which specializes in drugs for life-threatening illnesses, earned $398.3 million, or 42 cents a share, compared to a loss of $52.2 million, or 6 cents a share, in the same quarter last year. Revenue climbed 41% reaching a record high of $1.06 billion, beating the Street's prediction of $1.04 billion.
Higher-than-expected sales of the company's HIV drugs, Truvada and Atripla, forced sales to a record $962 million, up 44% from $670.1 million in the third quarter last year.
, a thriving fund, owns GILD. Schwab Health Care Fund is an open-end fund, with a Morningstar rating of four stars. It also likes health care insurance company,
So with Gilead, we see an increased buyback, solid earnings and an outstanding fund in the stock. It could be time to take a harder look at GILD.
To see the rest of this week's picks, check out Stockpickr's
- Top 10 Insider Purchases and Buybacks XVIII
- Top 10 Insider Purchases and Buybacks XVIX
- Top 10 Insider Purchases and Buybacks XX
- Top 10 Insider Purchases and Buybacks XXI
- Top 10 Insider Purchases and Buybacks XXII
- Top 10 Insider Purchases and Buybacks XXIII
- Top 10 Insider Purchases and Buybacks XXIV
- Top 10 Insider Purchases and Buybacks XXV
- Top 10 Insider Purchases and Buybacks XXVI
- Top 10 Insider Purchases and Buybacks XXVII
You can also review
from the prior week as well as Cramer's
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for
The Financial Times
and the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
to send him an email.
TheStreet.com has a revenue-sharing relationship with Trader's Library under which it receives a portion of the revenue from purchases by customers directed there from TheStreet.com.