Famed Short Seller Jim Chanos’ Was Bullish On These Stocks in Q2

 #3 Johnson & Johnson (NYSE:JNJ)

– Shares Owned by Kynikos (as of June 30): 49,843

– Value of Holding (as of June 30): $6.05 Million

Johnson & Johnson (NYSE:JNJ) is the only stock covered in this article in which Kynikos had a stake prior to the start of the second quarter. The fund initiated its stake in the healthcare behemoth during the first quarter and upped it by 67% during the second quarter. Johnson & Johnson (NYSE:JNJ)’s stock has been rallying since the start of 2016 and recently made its lifetime high at $126.07. While this rally has been hugely beneficial for existing shareholders of the company, it has also reduced the annual dividend yield of the stock, which currently stands at 2.7%. Despite the terrific gains the stock has registered this year and its current trailing P/E ratio of 22.18, most analysts are still bullish on it. The 23 leading analysts and research firms on Wall Street that track Johnson & Johnson currently have an average rating of ‘Overweight’ and an average price target of $126.65 on it, which represents potential upside of 6.38%. Donald Yacktman’s Yacktman Asset Management lowered its stake in the company by 6% to 6.67 million shares during the second quarter.

#2 Crown Holdings, Inc. (NYSE:CCK)

– Shares Owned by Kynikos (as of June 30): 131,329

– Value of Holding (as of June 30): $6.65 Million

Moving on, Crown Holdings, Inc. (NYSE:CCK) was another stock in which Kynikos initiated a stake during the second quarter. Shares of the packaging products company have largely been range-bound for more than two years now, and are currently trading up by 3.12% in 2016. Some analysts who track the company feel that its current valuation makes it a better bet than most beverage companies, a segment from which Crown Holdings, Inc. (NYSE:CCK) derives a large chunk of its revenue. For its third quarter, analysts are expecting the company to report EPS of $1.30 on revenue of $2.40 billion. For the same quarter of the previous financial year, Crown Holdings, Inc. reported EPS of $1.34 on revenue of $2.46 billion. On July 25, analysts at Barclays reiterated their ‘Overweight’ rating on the stock while boosting their price target on it to $64 from $62. Lou Simpson‘s SQ Advisors cut its stake in Crown Holdings by half, to 1.46 million shares during the April-to-June period.

#1 Energizer Holdings Inc (NYSE:ENR)

– Shares Owned by Kynikos (as of June 30): 130,990

– Value of Holding (as of June 30): $6.74 Million

Energizer Holdings Inc (NYSE:ENR) was the top new stock pick of Kynikos during the second quarter. The company became a separate, publicly-traded entity last July after the completion of its spin-off from Edgewell Personal Care Co (NYSE:EPC). Since then, Energizer Holdings Inc (NYSE:ENR)’s stock has appreciated by over 33% and is currently trading up by 20% year-to-date. Energizer currently pays a quarterly dividend of $0.25 per share, which despite the huge rally in its stock, still translates into a respectable annual dividend yield of over 2%. Though a lot of analysts who track the company have been bearish on it for many months, citing the dim future prospects of the disposable battery industry, Energizer Holdings’ stock hasn’t endured any notable correction since the start of 2016. On August 10, analysts at Jefferies Group reiterated their ‘Hold’ rating on the stock.

Disclosure: None