McMoRan Exploration Co. (MMR)

[Timothy Smith]

McMoRan Exploration Co (MMR), is T Boone Pickens' second favorite small-cap stock.

Freeport-McMoRan (FCX) acquired the deep-sea driller in December, which had originally initiated a MMR spinoff nearly two decades ago. In the time since the deal, shares of McMoRan Exploration have risen by close to 90%, making Pickens millions in the process.

At the end of the third quarter-the last 13F-filing period we have on record-the billionaire held approximately $3.9 million worth of MMR stock, meaning that he has made a cool $3.5 million in seven weeks' time.

That's that definition of a "smart money-play."