This article presents an overview of the 5 Stocks Jim Cramer Recommended Selling, But Billionaires Love Them. For a detailed overview of such stocks, read our article, 11 Stocks Jim Cramer Recommended Selling, But Billionaires Love Them.
5. Catalent Inc (NYSE:CTLT)
Number of Billionaire Investors: 9
Jim Cramer in November 2023 was recommending investors to stay away from Catalent Inc (NYSE:CTLT).
However, Insider Monkey’s billionaire database shows that nine billionaires had stakes in the healthcare company Catalent Inc (NYSE:CTLT). Some notable billionaires with stakes in Catalent Inc (NYSE:CTLT) are billionaire Paul Singer, Steve Cohen and Ken Griffin.
In November, Baird upgraded the stock to Outperform, saying “virtually every concern previously holding us back is being addressed.”
Baird also increased its price target on the stock to $53 from $45.
4. Verizon Communications Inc. (NYSE:VZ)
Number of Billionaire Investors: 12
In August Jim Cramer had said Verizon Communications Inc. (NYSE:VZ) is “going nowhere” while in September 2023 he said Verizon Communications Inc. (NYSE:VZ) was “dead money.”
A total of 12 billionaires in Insider Monkey’s database of billionaires had stakes in the telecom company. Notable billionaire investors of Verizon Communications Inc. (NYSE:VZ) include Ken Griffin, Cliff Asness and DE Shaw.
Earlier this month, Verizon Communications Inc. (NYSE:VZ) shares jumped after Citi opened a 90-day positive catalyst watch ahead of its fourth-quarter results.
Citi expects the upcoming fourth quarter earnings season to show a “stabilizing” wireless competitive landscape for Verizon Communications Inc. (NYSE:VZ). Citi has set a $45 price target on the stock.
Ariel Global Fund made the following comment about Verizon Communications Inc. (NYSE:VZ) in its Q3 2023 investor letter:
“By comparison, global communications and technology leader, Verizon Communications Inc. (NYSE:VZ), continued to weigh on performance following an article in the Wall Street Journal outlining concerns on lead cable lines posing a significant public health threat. Although the lead covered cable lines remain an overhang on shares, we find Verizon’s valuation to be compelling. The company delivered a solid earnings report, with subscriber and financial metrics in-line or ahead of consensus. Management also reiterated full year guidance and noted it may exceed its outlook for free-cash-flow. From a competitive and financial standpoint, we view Verizon to be among one of the best positioned telecoms in the world. Looking forward, we expect free cash flow to grow significantly in the years ahead as the company moves past the secular peak in 5G capital spending.”
3. Bausch Health Companies Inc (NYSE:BHC)
Number of Billionaire Investors: 13
During his program in December 2023, Jim Cramer sounded extremely disappointed with Bausch Health Companies Inc (NYSE:BHC). Jim Cramer said he can’t believe “how poorly it’s done.”
Bausch Health Companies Inc (NYSE:BHC) shares have lost about 13% over the past six months.
Previously known as Valeant Pharmaceuticals, Bausch Health Companies Inc (NYSE:BHC) stock has taken a beating amid heavy debt and litigation issues.
Still, 13 billionaires in Insider Monkey’s database of billionaires had stakes in Bausch Health Companies Inc (NYSE:BHC) as of the end of the third quarter of 2023.
2. Devon Energy Corp (NYSE:DVN)
Number of Billionaire Investors: 13
When asked about Devon Energy Corp (NYSE:DVN), Jim Cramer recently said in his program that investors should stay away from Devon Energy Corp (NYSE:DVN) since it’s an oil stock and we are currently in an oil glut. Cramer advised against owning commodity stocks during a glut.
Insider Monkey’s billionaires’ database shows that 13 billionaires held stakes in Devon Energy Corp (NYSE:DVN). Some notable billionaires with stakes in Devon Energy Corp (NYSE:DVN) include Israel Englander, D. E. Shaw and Ken Griffin.
1. AT&T Inc (NYSE:T)
Number of Billionaire Investors: 15
Jim Cramer last year kept recommending investors to stay away from and sell AT&T Inc (NYSE:T) stock. He said “walk away” from AT&T Inc (NYSE:T) in a program as he believes AT&T Inc (NYSE:T) is as “poorly managed as any company I’ve ever seen in my lifetime.”
In August 2023, Jim Cramer called the telecom company stock “horrendous.”
Over the past one year AT&T Inc (NYSE:T) stock has lost about 13%.
A total of 15 billionaires in Insider Monkey’s database had stakes in AT&T Inc (NYSE:T).
Miller Value Income Strategy made the following comment about AT&T Inc. (NYSE:T) in its Q3 2023 investor letter:
“Our third-largest holding at quarter end was AT&T Inc. (NYSE:T), a leading provider of communications and connectivity services in the US. At $15/share, the stock trades at the same price it did almost thirty years ago. The share price is much less interesting to us in relation to where it has traded in the past than in relation to how much cash the company generates and what management is doing with it. At just over 6x earnings, the stock trades near its lowest price-to-earnings (P/E) multiple ever, also representing close to its largest-ever P/E discount to the stock market. The business converts most of its earnings to free cash flow, implying a forward free cash flow yield north of 15%. Just under half of free cash flow is going toward the dividend (7.5% yield), while much of the balance is going to debt paydown. In other words, if the stock does not fall below its lowest-ever valuation, investors clip a rock-solid 7.5% in cash, while owning a growing portion of a very steady business as management reduces debt outstanding. A discounted cash flow model will suggest that intrinsic value for shares begins with a “2,” suggesting the stock is undervalued on an absolute basis. The lack of volatility in the underlying fundamentals also makes it unique when compared to many other things we own, which reduces the probability of permanent capital impairment and argues for a significant weight in the portfolio.
AT&T looks particularly attractive when compared to some of the larger names dominating the S&P 500. Compare the stock to Apple, for instance, whose revenues and profits are likely to shrink this year, even as it trades at 29x this year’s earnings estimate. The ongoing return to rationality and capital accountability, along with extreme valuations in the megacap tech stocks, have us more excited about our portfolio’s prospects than we can remember for quite some time. As always, we remain the largest investors and welcome any questions or comments.”
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