Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



This $12 Billion Hedge Fund Sold Hewlett-Packard, Micron Technology, and Broadcom

The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider Bridgewater Associates, one of the world's largest hedge fund companies. According to its recently released 13F statement, the company has reduced or eliminated its positions in Hewlett-Packard  (NYSE: HPQ  ) , Broadcom (NASDAQ: BRCM  ) , and Micron Technology  (NASDAQ: MU  ) .

Hewlett-Packard has struggled in recent years, but its stock doubled in 2013 and it's up by double digits so far this year. The printing giant has been hurt by the weak PC market, with shrinking revenue to show for it, while earnings have risen in part due to aggressive cost-cutting. The company's turnaround strategy includes enormous layoffs, to the tune of about 45,000 to 50,000 jobs, with some worrying whether it's cutting bone along with fat. (It hasn't been cutting its R&D spending, though.) A bright spot is its hefty free cash flow, topping $8 billion annually. Hewlett-Packard bulls like its moves into areas such as 3-D printing and in health care analytics, as well as its 1.9% dividend yield. The company's forward price-to-earnings ratio of 8.6 is appealing, but Hewlett-Packard's future is rather uncertain.

Broadcom is a telecom chipmaker whose stock has averaged 3% annual growth over the past decade. It did pop close to 10% recently, though, when the company announced that it's giving up on its low-margin cellular business (which some think Apple might want to buy). A bit of good news is that Broadcom is working with Apple on its HomeKit home-automation technology that should appear in this year's iOS8. Bulls are hopeful about its investments in the infrastructure, mobile, and wearable-computing arena. Bears don't like the company's deteriorating financials and disappointing recent quarterly results -- but many of these numbers could change for the better soon. Broadcom's stock yields 1.3%.

Micron Technology's stock has surged some 130% over the past year, and its P/E ratio is still just near 12, suggesting that it's attractively priced. It offers a lot of reasons to be bullish, such as stabilizing prices, expected continued demand growth for memory, and Micron's presence in iPhones, which are likely to experience a surge in sales with the upcoming debut of the iPhone 6. Some expect the company to start paying a dividend again, as its free cash flow is substantial and profit margins are growing. There are still some worries, though, such as the commoditization of memory, the risk of falling prices, and tough competition.

Are you ready for this $14.4 trillion revolution?
Have you ever dreamed of traveling back in time and telling your younger self to invest in Apple? Or to load up on at its IPO, and then just keep holding? We haven't mastered time travel, but there is a way to get out ahead of the next big thing. The secret is to find a small-cap "pure-play" and then watch as the industry -- and your company -- enjoy those same explosive returns. Our team of equity analysts has identified one stock that's ready for stunning profits with the growth of a $14.4 TRILLION industry. You can't travel back in time, but you can set up your future. Click here for the whole story in our eye-opening report.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2991078, ~/Articles/ArticleHandler.aspx, 9/3/2015 8:53:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Selena Maranjian

Selena Maranjian has been writing for the Fool since 1996 and covers basic investing and personal finance topics. She also prepares the Fool's syndicated newspaper column and has written or co-written a number of Fool books. For more financial and non-financial fare (as well as silly things), follow her on Twitter...

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,351.38 293.03 0.00%
S&P 500 1,948.86 35.01 0.00%
NASD 4,749.98 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 3:59 PM
BRCM $50.86 Down +0.00 +0.00%
Broadcom Corp CAPS Rating: ****
HPQ $28.00 Down +0.00 +0.00%
Hewlett-Packard Co… CAPS Rating: ***
MU $16.29 Down +0.00 +0.00%
Micron Technology,… CAPS Rating: ****