Bernard Selz Grows Bullish On These Stocks

Selz Capital also initiated a position in JetBlue Airways Corporation (NASDAQ:JBLU) during the third quarter, holding 230,000 shares of the company worth more than $3.96 million at the end of September. JetBlue Airways Corporation (NASDAQ:JBLU) has given a return of more than 300% to investors over the last five years, and Selz believes there is yet more room for the stock to run. The company has been successful in growing both its revenue and margins over the last five years. JetBlue reported an increase of 10.8% in its September traffic as compared to last September and expects its capacity to grow by between 3% and 5% in the fourth quarter. With over 925 daily flights, JetBlue Airways Corporation (NASDAQ:JBLU) accounts for more than 5% of the domestic airline market in the U.S. 38 hedge funds that we track were long JetBlue at the end of June, up from 29 at the end of March. They held $479 million worth of JetBlue stock, which represented 9% of the float.

Selz Capital holds 40,000 shares of NetEase Inc ADR (NASDAQ:NTES) as of September 30, taking a $9.17 million position in the Chinese company that provides services for online games, as well as advertising, email, and eCommerce solutions. According to analysts, the company should report earnings of $11.18 per ADR with revenue of $5.3 billion for the current year. NetEase Inc ADR (NASDAQ:NTES) has returned 46% this year and is trading at nearly 25-times earnings. Thanks to the huge internet population in China, and the country’s GDP growth still going strong at 6.7% in the third quarter, despite worries of a slowdown, NetEase appears well positioned for further growth. Since the Chinese government gives strong preferential treatment to domestic companies, NetEase Inc ADR (NASDAQ:NTES) has an almost indomitable position in the Chinese internet market. Almost 19% of the company’s ADRs were owned by 27 of the hedge funds that we track at the end of June.

Lastly is Silver Wheaton Corp. (NYSE:SLW), the world’s largest precious metal streaming company. Selz Capital loaded up on 398,000 shares of the company during the third quarter, making it the fund’s most valuable new holding. Silver Wheaton Corp. (NYSE:SLW) provides finance to mining companies and in return gets purchasing rights to the future production from the miners at very lucrative prices. The stock has returned almost 98% this year thanks to improving gold and silver prices, though shares have declined by approximately 8% in the last month. Precious metals like gold and silver are a preferred investment class for investors in the low-interest-rate environment and given the uncertain global economy. Silver Wheaton Corp. (NYSE:SLW) reported healthy gold sales of 70,000 ounces during the second quarter of 2016. It also increased its stake in the Salobo mine recently and expects total annual production to increase to 330,000 ounces of gold. The number of hedge funds in our system that held the stock declined to 29 at the end of June from 33 a quarter earlier, as some funds took profits off the table from the stock’s first-half run-up.

Disclosure: None