Apple Inc. (AAPL), Facebook Inc (FB): Billionaire Stephen Mandel’s Top Moves

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Although the company does not have as robust a store count as Dollar General, Dollar Tree does have stores in Canada, with a total of 4,500 spread across that country and the U.S. The company has plenty of room to grow, and plans to capitalize by growing square footage by 7% in fiscal 2014 (which ends next January). Based on its industry-best growth and return on investment, I think Dollar Tree is the best-of-the-industry pick.

A bigger stake in broadband

One of Mandel’s biggest increases was Charter Communications, Inc. (NASDAQ:CHTR), representing a 1,368% increase from fourth-quarter shares. It now occupies the 19th spot in Lone Pine’s portfolio. Charter is still a leading broadband communications company and the fourth-largest cable operator in the U.S. It’s worth noting that the cable company is a low-volatility play, with a beta of only 0.7.

Charter’s revenues are expected to be up 4% and 5% in 2013 and 2014, respectively, thanks to additions to its high-speed residential data services. The company expects to add some 325,000 to 350,000 subscribers per year over the interim.
Analysts also expect the company’s EPS to start recovering. Its 2012 EPS came in at a $3.05 loss, but 2013 is forecasted at a negative $1.43, and 2014 a positive $1.20.

Don’t be fooled

Mandel fell out of love with Apple Inc. (NASDAQ:AAPL) entirely, but he appears to have found value in Facebook Inc (NASDAQ:FB). I would tend to agree that the uncertainty surrounding Apple Inc. (NASDAQ:AAPL) warrants a “wait and see” approach. Meanwhile, the prospects and improving financials at Facebook Inc (NASDAQ:FB) might make for a compelling investment. I still believe that both of Mandel’s discount retail picks will perform well despite a rebounding economy, and I think the competition related to Charter’s business might continue pressuring the company in the near future.

The article Billionaire Stephen Mandel’s Top Moves originally appeared on Fool.com and is written by Marshall Hargrave.

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