Market Overview

Hedge Fund Guru Emmanuel Lemelson Just Revealed How He's Trading Apple (And 3 Other Stocks)

Hedge Fund Guru Emmanuel Lemelson Just Revealed How He's Trading Apple And 3 Other Stocks
Related AAPL
The Market In 5 Minutes: Government Shutdown, IBM's Sales Beat, Tobacco Stock Upgrades
Infographic: Global PC Business Hits A 10-Year Low
Plancorp, LLC Buys Vanguard Short-Term Bond, Apple Inc, Eversource Energy, Sells SPDR Nuveen ... (GuruFocus)

Recently on Benzinga's PreMarket Prep, Reverend Emmanuel Lemelson shared his thoughts on recent events in the financial world.

The hedge fund manager's past and current results are hard to beat. Year to date, his Amvona Fund has a gross rate of return of 56.9 percent (40.23 net), far exceeding the S&P 500 index's return of nearly 11 percent.

Long Apple Update

In his last appearance on the show, Lemelson was very optimistic about the share price of Apple Inc. (NASDAQ: AAPL). "Revenues have increased, and it appears profits are certainly going to increase," he said.

This prediction came to fruition with the company's recent earnings beat on October 20 when it reported $1.42 in earnings per share (versus $1.31 estimates).

Related Link: Hedge Fund Guru Emmanuel Lemelson Explains How To Balance Investments And Morality In Ferguson, MO

This week, Lemelson stated that he has “no plans to sell." He's comfortable, he added, with the large dividend it pays and has the utmost confidence in the management to continue to have the company “running on all cylinders.”

Long Kulicke & Soffa Update

Also, Lemelson provided an update on his position in Kulicke and Soffa Industries Inc. (NASDAQ: KLIC). During his last appearance, Lemelson explained: “If you have to mortgage your grandmother's house to buy these shares do it.”

He's still very bullish on the company, as it has heeded his call for a stock repurchase program with its large cash holdings.

Although Kulicke & Soffa only initiated a 100 million-share buyback, Lemelson said he wouldn't be surprised if the company bumped it up to 250 million. If that turns out to be the case, he wouldn't be surprised to see a price increase to the $19.00 level.

Long WWE Update

One holding that has not performed as well as he hoped is World Wrestling Entertainment, Inc. (NYSE: WWE), as its shares have declined from an October 16 close of $13.99 to the $12.00 level.

In particular, Lemelson cautioned leadership transition is a reason for concern, but added that he's confident the company will find a suitable successor or acquisition partner.

Short Ligand Pharmaceuticals Update

With respect to his short position in Ligand Pharmaceuticals Inc. (NASDAQ: LGND), Lemelson covered a large portion of his position at the $43.00 level.

“In a moment of reflection, [I'm] just thinking: How long do I keep publishing reports about the absurdity that is going on at the company,” he said.

Posted-In: Amvona Fund Apple stock Emmanuel LemelsonLong Ideas Short Ideas Hedge Funds Trading Ideas Interview Best of Benzinga


Related Articles (AAPL + KLIC)

View Comments and Join the Discussion!