In this article, we discuss the top 5 stock picks of Alden Global. If you want to read our detailed analysis of these stocks, go directly to ‘A Vulture Hedge Fund’ — Alden Global’s Top 10 Stock Picks.
5. Tecnoglass Inc. (NASDAQ:TGLS)
Number of Hedge Fund Holders: 11
Raymond James analyst Joshua Wilson had raised the price target on Tecnoglass Inc. (NASDAQ:TGLS) stock to $26 from $15 in August, maintaining a Strong Buy rating. The company, which is one of the top stock picks of Alden Global, beat market predictions on earnings per share and revenue in the second quarter by $0.09 and $14 million respectively. It has a market cap of over $1.2 billion.
According to 13F filings, Alden Global Capital owned over 191,500 shares in Tecnoglass Inc. (NASDAQ:TGLS) at the end of June 2021 worth $4 million, representing 8.22% of the portfolio of the fund.
At the end of the second quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $58 million in Tecnoglass Inc. (NASDAQ:TGLS), up from 10 in the previous quarter worth $30 million.
4. Baker Hughes Company (NYSE:BKR)
Number of Hedge Fund Holders: 40
Baker Hughes Company (NYSE:BKR) stock has pulled back this week after the company announced third quarter earnings that fell short of market expectations. However, with oil prices on the rise and new projects on the horizon for the firm, it is expected that the energy firm will make a strong comeback in the fourth quarter. Cowen analyst Marc Bianchi has an Outperform rating on the stock with a price target of $31.
According to the latest data, Alden Global Capital owned more than 181,900 shares in Baker Hughes Company (NYSE:BKR) at the end of the second quarter of 2021 worth $4.1 million, representing 8.35% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in Baker Hughes Company (NYSE:BKR) with 23 million shares worth more than $542 million.
3. Euronav NV (NYSE:EURN)
Number of Hedge Fund Holders: 17
Euronav NV (NYSE:EURN) engages in the transportation and storage of crude oil. The stock has returned more than 36% to investors year-to-date. The firm owns and operates 77 vessels for business purposes, a large fleet by industry standards. It smashed market estimates on earnings per share and revenue in the second quarter. In late August, the company declared a quarterly dividend of $0.03 per share.
Securities filings show that Alden Global Capital owned over 447,000 shares in Euronav NV (NYSE:EURN) at the end of June 2021 worth $4.1 million, representing 8.36% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, New York-based firm QVT Financial is a leading shareholder in Euronav NV (NYSE:EURN) with 1.5 million shares worth more than $14 million.
2. Scorpio Tankers Inc. (NYSE:STNG)
Number of Hedge Fund Holders: 20
Scorpio Tankers Inc. (NYSE:STNG) is another oil transportation stock that features high on the list of top stock picks of Alden Global. The stock has been rebounding after touching a six-month low in August that prompted Deutsche Bank to downgrade it to a Sell rating. It is expected that global shipping disruptions, one of the reasons behind the supply chain issues facing many businesses, could last well into 2022.
Regulatory filings reveal that Alden Global Capital owned over 190,500 shares in Scorpio Tankers Inc. (NYSE:STNG) worth more than $4.2 million at the end of the second quarter of 2021, representing 8.43% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Hosking Partners is a leading shareholder in Scorpio Tankers Inc. (NYSE:STNG) with 803,540 shares worth more than $17 million.
In its Q2 2020 investor letter, Evermore Global Advisors, an asset management firm, highlighted a few stocks and Scorpio Tankers Inc. (NYSE:STNG) was one of them. Here is what the fund said:
“Scorpio Tankers (STNG US), one of the world’s largest product tanker operators, was the largest detractor to Fund performance during the second quarter. COVID-19 has caused significant demand destruction in oil and other refined oil products which resulted in contango for diesel, jet fuel and gasoline forward prices that made floating storage an attractive option for traders and refiners. We saw the positive impact on spot rates at the end of March and April, which pushed rates higher to unprecedented levels.
Starting in late April, Saudi Arabia, Russia and OPEC+ eventually agreed to cut oil production which led to the contango trade to dissipate, which negatively impacted spot rates and STNG’s stock price. While current rates are no longer at record high levels, we believe STNG secured attractive rates during the second quarter and we expect the company to generate significant cash flows, a view that has been dismissed by the broader market. In addition, STNG has reached an agreement with scrubber manufacturers to delay the purchase and installation of 19 scrubbers until at least 2021 in order to take advantage of the current environment.”
1. Devon Energy Corporation (NYSE:DVN)
Number of Hedge Fund Holders: 50
Truist analyst Neal Dingmann recently raised the price target on Devon Energy Corporation (NYSE:DVN) stock to $52 from $42 and reiterated a Buy rating, noting that consensus estimates “continue to trend below rising spot and forward prices” in the oil sector. The energy firm will likely increase free cash flow in the coming months as oil prices touch new highs and OPEC+ remains mum on large-scale production increases.
Alden Global Capital owned more than 302,820 shares in Devon Energy Corporation (NYSE:DVN) worth $8.8 million at the end of June 2021, representing 17.74% of the portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Adage Capital Management is a leading shareholder in Devon Energy Corporation (NYSE:DVN) with 7.5 million shares worth more than $219 million.
In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
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