John H. Scully, SPO Advisory Corp Further Boost Exposure to Equinix Inc (EQIX)


John H. Scully seems to be fond of Equinix Inc (NASDAQ:EQIX) and has further increased his fund’s stake in the company. According to a recent Form 4 filing with the Securities and Exchange Commission, SPO Advisory Corp has acquired 74,900 shares in six transactions at prices varying between $177.19 and $179.93 apiece. Following this move, the fund is holding a little over 5.48 million shares.


Barry Rosenstein, the manager of Jana Partners, has increased his fund’s stake in Equinix Inc (NASDAQ:EQIX) during the last quarter of 2013 by 50%, taking it to a little over 3.01 million shares. John Paulson, the billionaire manager of Paulson & Co, is also betting big on this stock, with his fund holding 2.08 million shares, up 74% during the same period of time.

A provider of data center services, Equinix Inc (NASDAQ:EQIX) has a market cap of $9.33 billion and does not pay a dividend. The stock is traded at a trailing Price to Earnings (P/E) ratio of 99.xx, which is significantly higher than the industry average of 66.30. It carries, however, a forward P/E ratio of 32.18, a sign that investors expect the company to capitalize on its earnings potential. For the first quarter of 2014, Equinix registered positive growth and has posted revenues of $580.1 million, up 12% compared to Q1 of 2013 and 3% higher than in the previous quarter, and earnings of $0.81 per diluted share. Current quarter is expected to bring revenues of $595 million and earnings per share of $0.79.

Earlier this year, Scully and SPO Advisory have reported a reduction in their holding of Calpine Corporation (NYSE:CPN), having dumped approximately 60% of their stake. As a result, SPO Advisory is left with approximately 12.12 million shares, which represent 2.9% of the company’s common stock. During the last quarter of 2013, SPO Advisory has increased its stake in Crown Castle International Corp (NYSE:CCI), taking it to 10.9 million shares. According to its latest 13F filing, SPO’s largest equity position is Charles Schwab Corp (NYSE:SCHW) and has remained unchanged during the Q4 of 2013 – 46.3 million shares.

Disclosure: none.

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