, founder of the $14 billion hedge fund Appaloosa Management, is
having another remarkable year, with all five of his top five
holdings having climbed by double digits, along with the 18.2% gain
for the S&P 500. Tepper is renowned for his stock picking and
marking reading ability. He has a 10-year cumulative return of
1,335% compared to 16.3% for the S&P 500 through 2010.
Last month, Tepper also told CNBC that he was bullish on the market
going forward after the Fed decided not to taper its $85 billion
monthly bond buying policy.
"The Feds non-taper and forward guidance should give a clear
message of what the Fed wants. They are not worried about inflation
in the next few years and want growth first, growth second, and
growth third. With the stabilization of Europe, the apparent pickup
in China (note higher dry bulk index) and a U.S. economy still on
reasonable footing, despite a slight slowdown in housing the Feds
apparent heavy leaning to a growth policy should lead to a pretty
favorable environment for the markets."
But not all of Tepper's stocks are reaching for the stars recently.
In fact, there are four that have fallen very close to their
52-week low: Carnival Corporation (
), Transocean Ltd. (
) and Calumet Specialty Products Partners LP (
Carnival Corporation (
Carnival Corporation, a 0.88% portion of Tepper's portfolio at
1,780,049 shares, is 1.1% above its 52-week low price, with a price
of $31.85 and 52-week low of $31.44.
Carnival's stock price chart:
Tepper purchased his Carnival position in the second quarter of
2013 when the price averaged $34 per share.
The company stock price dropped as much as 13% in September when it
reported its third quarter results. Carnival's revenue increased
less than 1% to $4.73 billion, and non-GAAP net income was $1.1
billion, or $1.38 per diluted share, compared to $1.2 billion, or
$1.53 per diluted share, in the third quarter the previous year.
The third-quarter non-GAAP earnings beat the company's June
guidance range of $1.25 to $1.33 due to lower than expected unit
costs related to advertising expenses timing.
As of the end of the quarter, Carnival had lower advanced
cumulative booking for the remainder of the year and first half of
2014 than the same periods last year, at the same prices. But the
company maintained June guidance for non-GAAP diluted earnings per
share in a range of $1.51 to $1.57. For the fourth quarter of 2013,
it is expecting non-GAAP diluted earnings per share in the range of
a $0.03 loss per to share to $0.03 earnings per share, down from
$0.14 the previous year.
Carnival's 10-year revenue and earnings history:
Carnival has a P/E of 16.6, P/B of 1.1 and P/S of 1.6.
Transocean Ltd. (
At 1.8% of his portfolio, Tepper holds 2,560,167 shares of
Transocean. The stock is priced at $44.81, which is 2.1% above its
52-week low of $43.65. The stock is down less than 1% in the past
Transocean's stock price:
In the second quarter Transocean Ltd. reported $2.397 billion, up
from $2.329 billion the second quarter of 2012. Net income also
increased to $311 million, or $0.84 per share, from a loss of $303
million, or $0.86 per share.
Transocean 10-year revenue and earnings history:
The company has a P/E of 22.9, which is close to a two-year low.
Its P/B of 1 and P/S of 1.7 are both close to their respective
Calumet Specialty Products Partners LP (
With 437,439 shares, Calumet constitutes 0.23% of Tepper's
portfolio, and he has been reducing the position size over multiple
Calumet shares are $27.95, which is 4.4% above their 52-week low of
Calument's share price:
Calumet makes high-quality, specialty hydrocarbon products used in
oils, lubricants, solvents, waxes and other substances.
In the second quarter, it made $1.354 billion in revenue, a rise
from $1.087 billion in the second quarter 2012. Net income declined
to $7.8 million, or $0.05 per diluted unit, down from $65.7
million, or $1.14 per diluted unit.
In a statement, the company listed the following factors as
negatively affecting second quarter performance: "a planned 45-day
turnaround at its Superior, Wisconsin refinery; a decline in fuel
products margins, compared to the prior year period; a narrowing in
the discount between NYMEX West Texas Intermediate ("WTI") crude
oil and other feedstocks such as Western Canadian Select ("WCS"),
Bakken light crude oil and Bow River heavy crude oil; lower prices
on select specialty products; and increased costs to purchase
Renewable Identification Numbers ("RINs") required for compliance
with the U.S. Renewable Fuels Standard."
Calumet's revenue and earnings history for 10-years:
Calumet has a P/B ratio of 1.5 and P/S of 0.3, which are both close
to their respective one-year low. Its P/E is 13.1.
For more David Tepper investing, go to his portfolio here. Also
check out the Undervalued Stocks, Top Growth Companies and High
Yield stocks of David Tepper.
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