Louis Bacon is the manager of the New York based hedge fund, Moore Capital Management. He is ranked of as one of the Top 100 money earners and is considered to be one of the top 100 traders of the 20th century. Bacon currently believes there are too many uncertainties in the market and as a result he is wary of committing long-term capital.
However, he is quite bullish on resource stocks and sees opportunities for global macro trading due to divergences within the global investment landscape. This article will review five of the most recent stock purchases by Bacon in an attempt to uncover stocks that have been undervalued by the market in an attempt to maximize returns over the long term.
Varian Semiconductor Equipment (VSEA)
Varian Semiconductor Equipment has a market cap of $4.85 billion and a price to earnings ratio of 17.02. Its 52 week trading range is $29.94 to $62.87 and is currently trading at around $63.00. Varian Semiconductor reported second quarter earnings 2011 of $328.44 million, a marginal decrease from first quarter earnings of $330.02 million. Second quarter net income was $67.40 million, a decrease from first quarter net income of $82.34 million. It has quarterly revenue growth of 44.20%, a return on equity of314.14%, and doesn’t pay a dividend.
One of Varian Semiconductor´s closest competitors is Axcelis Technologies Inc (ACLS). Axcelis is currently trading at around $1.50 and has a market cap of $158.57 million. It has a price to earnings ratio of 36.34, quarterly revenue growth of 60.40% and a return on equity of 1.97%. It doesn’t pay a dividend. To continue reading, click here