In this article, we discuss billionaire Michael Price’s top 5 stock picks. For Price’s investment philosophy and his comments on certain stocks please see Billionaire Michael Price’s Top 10 Stock Picks.
5. CIT Group Inc. (NYSE: CIT)
The regional bank CIT Group Inc. (NYSE: CIT) is the fifth-largest stock holding of the MFP Investors’ portfolio for 2021. The firm held 645,600 shares of CIT at the end of the latest quarter, accounting for 3.57% of the overall portfolio. Shares of CIT Group rallied 33% since the beginning of this year, thanks to improving market trends and financial numbers. Its fourth-quarter revenue of $496 million increased 7.6% year over year. CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals.
4. Dolby Laboratories Inc. (NYSE: DLB)
Despite selling a 44% position during the fourth quarter, Dolby Laboratories Inc. (NYSE: DLB) still represents the fourth largest stock holding of Michael Price’s portfolio. Shares of Dolby Laboratories soared 49% in the last twelve months. The company has generated 49% revenue growth in the latest quarter and raised the second-quarter revenue forecast to $280-310 million compared to the prior guidance for $270-300 million.
3. Bunge Limited (NYSE: BG)
Shares of Bunge Limited (NYSE: BG) saw a stunning rally in the last twelve months amid improving demand for its products. Bunge is ranked third among billionaire Michael Price’s top 10 stock picks for 2021. In addition to a 80% share price rally in the last twelve months, Bunge also offers a hefty dividend yield of 2.57%. Bunge Limited operates as an agribusiness and food company worldwide. It operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Fertilizer, and Sugar and Bioenergy. Its revenue grew 17% year over year in the latest quarter and the company expects favorable trends to continue in 2021.
2. S&W Seed Company (NASDAQ: SANW)
Michael Price’s strategy of holding a big position in S&W Seed Company (NASDAQ: SANW) appears to be benefiting his hedge fund. Shares of S&W Seed Company rallied 18% so far in 2021, enlarging twelve-month gains to 30%. It is an agricultural company, engaging in breeding, growing, processing, and selling alfalfa and sorghum seeds. The latest rally in SANW stock price is backed by 21.9% year-over-year revenue growth in the latest quarter.
1. Intel Corporation (NASDAQ: INTC)
Intel tops the list of billionaire Michael Price’s top 10 stock picks. The hedge fund sold 12% of its stake in Intel Corporation (NASDAQ: INTC) during the fourth quarter. Intel’s stock price has bounced back strongly during the first quarter due to restructuring strategies and improving demand. INTC stock price rose 21% since the beginning of this year.
Third Point LLC, which generated a net return of 16.1% for the fourth quarter, highlighted Intel Corporation in their Q4 investor letter. Here is what Third Point LLC said:
“After building a significant stake in Intel in Q4, we sent a letter on December 29th to Intel’s Board Chairman, Omar Ishrak. We shared our views regarding Intel’s dramatic underperformance and suggested certain steps the company could take to remedy a rapidly deteriorating outlook. We highlighted an urgent need for Intel to address its “brain drain” of engineering talent, the chief cause of the manufacturing and design deficiencies that have led to its declining market share.
Shortly after our note and engagement with the company, Intel announced it was bringing back Pat Gelsinger as its new CEO. Gelsinger is a respected engineer and manager who previously spent 30 years of his career working closely with Intel’s legendary founders during the company’s best days. With a background in electrical engineering and prior roles such as head of Intel’s digital enterprise group, desktop products group, and Intel Labs, and as the company’s first CTO, Gelsinger has the deep technical expertise needed to address Intel’s current execution issues. He also has a history of success in reinvigorating major organizations. During his eight-year tenure as CEO of VMWare, he put the on-premise company on a path to the hybrid cloud and positioned it for several years of growth ahead.”
You can also take a peek at Billionaire Carl Icahn’s Top 10 Picks and Cathie Wood’s Top 10 Stock Picks.
