One of the primary goals of Stockpickr.com is to allow everyday investors to see what the big guns are buying. Often times, we see a big-name investor loading up on a particular stock. This is usually a good sign because you know that person put a lot of time and due diligence into that process. Plus, high-profile investors have bankers, lawyers and consultants breaking down the business every which way imaginable.
The real icing on the cake, however, is when that same company announces that an insider has purchased a large chunk of stock or even better, the board initiates a new, large share-buyback program.
That's why each Thursday at Stockpickr we update the
portfolio, featuring the stocks that in the last week had either big insider purchases or newly announced buybacks, as well as super-investors accumulating shares.
makes this week's list. The aerospace giant recently announced it will repurchase up to $7 billion in common stock. Since resuming repurchases in 2004, the Chicago-based company has bought back about $8 billion of its shares.
Boeing also posted solid third-quarter earnings at the end of October. Analysts were looking for net income of $1.24 a share, but the jetmaker delivered $1.44. The stock has a
price-to-earnings (P/E)ratio of 18, a P/E-to-growth (PEG) ratio of 1.2 and a yield of 1.5%, stats that, taken alone, make it very attractive. The outlook wasn't stellar but with $295 billion in backorders, earnings per share are locked in for some time.
Right now there is a lot of debate as to whether Boeing can deliver the 787 on time and that has kept pressure on the shares as of late. As I've said before, I do not believe it matters if Boeing can deliver the 787 by December or April. The fact of the matter is that Airbus, its main competitor, is so far behind that Boeing has some wiggle room.
Another positive for Boeing is that the Blackstone Group's hedge fund,
, owns the stock. Some of its other positions are
Another all-star investment fund that owns Boeing's shares is
. The firm, which has $13 billion of assets under management, invests in global securities markets on behalf of major institutions, endowments, pension funds and private investors. Other top holdings of Atticus include
So with Boeing, we have a buyback, solid earnings and two well-known investors in the stock. It may be time to take a closer look.
Next on the list is
. The largest U.S. health insurer by market value said Wednesday it increased its stock repurchase program to as much as 210 million shares and may take on more debt. Based on the current stock price, the total buyback program could be worth as much as $10 billion.
In late October, UnitedHealth reported a 15% rise in quarterly profits but also noted that it gave up some health insurance customers to stay profitable rather than slash prices too low. Bank of America analyst Joe France pointed out that "while enrollment was weak and guidance isn't up much ... the results were not nearly as bad as many seemed to fear..." UnitedHealth, which trades for just 7 times cash flow, just completed its $775 million acquisition of
health-related businesses, and it's expected to close on its acquisition of
Sierra Health Services
It's good to see a fund like
in the stock. Maverick Capital is a $10 billion hedge fund started in 1993 by Lee S. Ainslie III, who was a protégé of the legendary investor Julian Robertson at Tiger Management. Other top holdings include
It's also good to see that
is a believer in the stock. Ahmet Okumus is a staunch disciple of the Benjamin Graham and David Dodd style of value investing. Okumus Capital has yet to have a down year and has been averaging 20%-plus since its inception 10 years ago. We like to see that an investor with such an impressive history likes UnitedHealth. For the rest of Okumus' holdings, including
, check out the
portfolio at Stockpickr.com.
With a buyback, solid earnings and two noteworthy funds in the stock, it may be time to take a look at UnitedHealth.
And finally, we have
United Parcel Service
rounding out this week's portfolio. The shipping carrier recently announced its board authorized a stock-buyback for up to $2 billion in stock.
The Atlanta-based company in late October reported a 3.7% increase in third-quarter profit on a slight rise in sales. While the company noted the fourth quarter could be tough due to weak U.S. retail sales, most analysts remained upbeat about the company. For starters, it did beat Wall Street expectations and international growth was again very strong.
"We think UPS is operating well in a tough environment, is well diversified geographically, and gaining traction in its freight business," Standard & Poor's analyst Jim Corridore said in a recent research note.
Adding to the bullish case for UPS is that
is a believer in the company. Often considered the "other Oracle of Omaha," Weitz favors the value-disciplined approach of Ben Graham while also having "a conviction that qualitative factors that allow a company to have some control over its destiny can be more important than statistical measurements, such as historical book value or reported earnings."
is another thriving fund that owns UPS stock. This Nicholas Kaiser managed fund has a Morningstar rating of five stars and has posted a 17% annualized return over the last three years. Other holdings include
So with UPS we have a large buyback, solid earnings, analyst support and two outstanding funds in the stock. It could be time to take a harder look at UPS.
To see the rest of this week's picks, check out Stockpickr's
- 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
- Top 10 Insider Purchases and Buybacks XXVIII
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.
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