Bill Ackman acknowledges mistakes in 2015 (Reuters)

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Highlights:
Ackman, whose Pershing Square Capital Management lost between 16 percent and 20 percent in its funds in 2015, said it was a “very costly” mistake that he did not sell drug maker Valeant Pharmaceuticals International Inc when the stock price rose to $200 over the summer.

Similarly, he feels the firm should have cut its stake in Canadian Pacific when it reached Canadian $240 per share and he said it was a mistake to buy more shares in Platform Specialty Products at $25 a share to help the company finance an acquisition.

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Reference

http://www.reuters.com/article/us-hedgefunds-ackman-idUSKCN0V500X?nl=dealbook&emc=edit_dlbkam_20160127

David Einhorn Betting Market Price Collapse in Tesla Motors (TSLA), Netflix (NFLX), and Amazon (AMZN).

Highlights:
Bloomberg: Greenlight Capital’s David Einhorn is betting against popular growth stocks Amazon.com Inc. and Netflix Inc.

Amazon and Netflix both more than doubled in value last year. Einhorn, in the firm’s presentation, pointed to differences between the two companies and more established brands such as Apple Inc. and Time Warner Cable Inc.

“Analysts strain to justify ever high” prices for Amazon shares, according to Greenlight’s presentation. A wager against the Internet giant cost the investment firm 1.3 percentage points of performance last year.

Benzinga: According to Institutional Investor’s Alpha, Greenlight Capital’s David Einhorn is shorting high-flying stocks Tesla Motors (TSLA), Netflix (NFLX), and Amazon (AMZN).
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References
http://www.bloomberg.com/…/einhorn-s-greenlight-hedge-fund-…

http://www.benzinga.com/…/6163…/is-david-einhorn-short-tesla

JNJ + Google = Less Surgeons in the Future, or Not? (Dec 10, 2015 9:18am EST)

Highlights
Johnson & Johnson (ticker JNJ) and Alphabet (parent company of Google; ticker GOOG) Inc’s life sciences unit have formed an independent company to create far smaller, smarter and less costly robotic-assisted systems for surgery than those sold now by other companies, J&J said on Thursday.

J&J’s Ethicon division, world leader in equipment for general surgery, designed a basic prototype of the robot last year and expects it to be a “disruptive” alternative to existing products, Gary Pruden, global chairman of J&J’s medical devices group, said in an interview.

Current robotic systems, including those sold by market leader Intuitive Surgical Inc, are the size of a compact car and require the surgeon to sit at a control panel about 10 feet from the patient, Pruden said

It (JNJ+Google innovation surgical robot) would come loaded with technologies from Alphabet, including “machine learning,” in which the robot could analyze a video library of images from hundreds of previous surgeries in order to instruct the surgeon where to cut.

“Our goal is to have a lower-cost product, with the smallest footprint, with greater capability, that helps to raise the standard of care,” Pruden said. “That would be a market disruption.”

JNJ Financials (Gurufocus.com)
Profitability:
Operating margin (%) 26.5
Net-margin (%) 20.87
ROE (%) 20.61
ROA (%) 11.2

Ratios
P/E(ttm) 18.56
P/B 3.71
P/S 3.87

Dividends:
Dividend Yield 3.05
Dividend Payout 56%
Dividend Growth (3y) 7

Reference

http://www.reuters.com/article/us-alphabet-johnson-johnson-robots-idUSKBN0TT1SB20151210

10 stock market ‘darlings’ you may want to break up with (Marketwatch)

Highlights:
Credit Suisse has identified the stocks most commonly held by funds — and recommends selling a lot of them.

Here are the 10 “most crowded” large-cap “darlings” that Credit Suisse identified, while suggesting it might be a good idea to reduce exposure to the group: (Image):

Reference
http://www.marketwatch.com/story/10-stock-market-darlings-you-may-want-to-break-up-with-2016-01-22?dist=lcountdown&link=sfmw_fb

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