David Dreman

Last Update: 2014-02-14

Number of Stocks: 417
Number of New Stocks: 150

Total Value: $1,324 Mil
Q/Q Turnover: 11%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

David Dreman Watch

  • Reynolds: New Product, More Profit

    Governments around the world have been pushing through regulations on tobacco companies, in order to reduce consumption. Apart from obligating tobacco companies to include precautionary labels on cigarette packages, the U.S. Food and Drug Administration (FDA) is focused on banning menthol-flavoured cigarettes, while the European Parliament passed a regulation in February 2014 stating that e-cigs most prove their preventive qualities in order to be approved. Also, e-cigs with over 20 milligrams of nicotine per millilitre will now require authorization as a medicine.


    These measures will undoubtedly out a strain on tobacco firms like Altria Group Inc. (MO) and Lorillard Inc. (LO), but shareholders seem confident about Reynolds American Inc. (RAI), and several investment gurus like Paul Tudor Jones (Trades, Portfolio) and David Dreman (Trades, Portfolio) have been buying the firm’s shares this past quarter. So, let’s see what this company’s strategy looks like going forward and if it will continue to reap profits.

      


  • ACE Went Through a Series of Acquisitions

    ACE Limited (ACE) is an insurance and reinsurance organization. The company provides commercial insurance products and service offerings such as risk management programs, loss control and engineering and complex claims management. The company’s segments are: Insurance - North American, Insurance - Overseas General, Global Reinsurance, and Life.


    An Efficient Strategy

      


  • Thomson Reuters: An Unstable Industry Leader?

    When Thomson Reuters Corporation (TRI) was formed in 2008, from the merger of Canada-based Thomson and UK-based Reuters Group, exceptional growth and profitability was expected. And although the company took on its leading role in the global information services industry, by providing data and content to a vast range of financial and professional markets worldwide, growth has been sluggish throughout fiscal 2013, raising concerns about the future. When investment gurus Joel Greenblatt (Trades, Portfolio) and David Dreman (Trades, Portfolio) then sold out their company shares, I began to wonder what was going on on the Reuters side of things.


    Two Divisions and a Few Problems

      


  • Rovi Corp: Profitability in Times of Change

    Rovi Corp (ROVI) has had several ups and downs in the technology market over the past few years. However, the last quarter showed positive financial results, and the new management team has taken upon itself the task of breathing fresh air into the firm. Therefore, the company is now undergoing a rebuilding period to improve its complex structure, which could put a temporary strain on operating margins.


    Nevertheless, Rovi’s 5300 issued and pending patents worldwide, in addition to its two- to five-year licensing contracts makes this business highly profitable, yet riskier. Furthermore, the firm’s intellectual property portfolio is its backbone and will be the key growth driver in the future as well. However, the current solid shareholder returns of 48% could suffer if the company’s Rovi Entertainment Store and DivX restructuring initiatives are unsuccessful.

      


  • Grow or Die - The Future of Kohl's in a Challenging Retail Environment

    With an online channel segment that is gaining importance, while modifying purchasing habits, companies in the department store industry are facing strong competition in a market that is dominated by larger peers such as Macy's (M) and J.C. Penney Company Inc. (JCP).


    Let's take a look at Kohl's Corp. (KSS), a company which is engaged in the operation of family-oriented department stores and a website (www.Kohls.com) that sell apparel, footwear and accessories for women, men and children; soft home products and housewares.

      


  • A Keen Observer of Mind and Market, David Dreman’s Lowest P/E Holdings in Review

    “Trouble is, human beings are poor forecasters, especially in a rapidly expanding, complex, multinational business environment. Even a 1-cent miss in the forecast sometimes results in a stock dropping 20% or more.” David Dreman , Dreman Value Management

    A key point in understanding contrarian value investing is based on David Dreman’s time-tested experience — that out-of-favor, low-P/E stocks outperform higher P/E stocks over time. David Dreman is the founder and chairman of Dreman Value Management. In interviews and prolific commentary, he emits a clear, coherent signal as a rare intellect with a wealth of intuitive understanding. With a firm grasp of how human emotions impact behavioral finance, Dreman comes across as an individual who can stand alone under peer pressure, as someone who faced the dot-com frenzy and just said no, later pointing out that many of those must-have stocks declined by around 79% in the two-year window following 1999. Dreman has spoken about losing clients by doing what is best for them. Backed by more than 30 years of research via his Institute of Behavioral Finance, Guru Dreman understands the human frailty of imperfection, the psychology of overreaction, and the absurdity that people are willing to pay for a concept.  


  • What Should You Do About Petrobras?

    Oil giant Petrobras (PBR) has one basic problem: Its largest shareholder is the Brazilian state. Hence, since the company operates serving the needs and preferences of its biggest shareholder, Petrobras not always does what is best for itself. The company also serves a social purpose. This means that, since Brazil is trying to fight off inflation, Petrobras shall not increase oil prices as much as the company needs to meet its Capex needs. Not only the company will increase prices by just 4% (gasoline) to 8% (diesel) - well below expectations - but also the company will not give investors the clear pricing formula the market was expecting. Let's take a look at the company's future and decide whether Petrobras is worth buying or not. After all, the shares are down by 19% year-to-date (ytd).

    Petrobras' Outlook Looks Somewhat Grim in the Short Term  


  • Brazil - Metals Sector

    With the earnings season coming our way, it might be a good idea to gain some exposure to the Brazilian metals sector through Brazilian steel names or through raw material producers such as Vale (VALE). I would expect quarter over quarter earning improvements across the board in the country as higher iron ore and steel prices are reflected into corporate results. Investors such as Ray Dalio and David Dreman are already positioned to benefit from the coming results.

    Strong Margin Recovery Ahead  


  • 5-Year lows: Pan American Silver Corporation, Northwest Natural Gas, Anworth Mortgage Asset Corporation and Gordman's Stores Inc.

    According to GuruFocus' list of five-year lows, these Guru stocks have reached their five-year lows: Pan American Silver Corporation, Northwest Natural Gas, Anworth Mortgage Asset Corporation and Gordman's Stores Inc

    Pan American Silver Corporation (NAS:PAAS) Reached the Five-Year Low of $9.91  


  • Calculating a Stock’s Fair Value Based on Future Growth Expectations: Part 2A

    Introduction

    In part one of this two-part series I focused primarily on calculating the intrinsic value of a common stock based on an analysis and review of historical information and data. Although I strongly believe that there is much that investors can learn by studying the past, I even more strongly believe that since we can only invest in the future, it is also implicit that we embrace a rational method of forecasting.  


  • The Trouble with Jakks Pacific (JAKK)

    Background: Jakks Pacific (JAKK) is a company which I started following after it was suggested as a special situation by Adib Motiwala [gurufocus]. Oaktree Capital approached Jakks with an interest to acquire it at $20 a share. The company was trading at around $15 at that time. In September 2011, Oaktree went public with the offer but Jakks management adopted poison pill in an attempt to rebuff the plan [bloomberg]. The company now trades at $5 and change. The question is, is it cheap enough to buy?

    Holdings: Oaktree, founded by Howard Marks, made an offer of $20. David Dreman holds 5.9% of the company. The management holds 2.3%, chiefly because of stock rewards. This is surprising because the current CEO was the co-founder of the company.  


  • Patience Is Sexy - Contrarian David Dreman’s Top Picks Sizzle

    Once an old-fashioned virtue, patience can be exciting when it realizes a gain of 477% as seen by Hanesbrands Inc. (HBI) not that long ago. But only a Guru billionaire investor like David Dreman can persuasively extol the virtues of patience and make it look vastly appealing as evidenced by his top holdings.

    Dreman Value Management currently lists 305 stocks, 44 of them new, with a total value of $3.78 billion and a quarter-over-quarter turnover of 9%.  


  • Guru David Dreman – Silver, Gold, and Patience

    David Dreman, the billionaire founder of Dreman Value Management once said, “Investors repeatedly jump ship on a good strategy just because it hasn’t worked so well lately, and, almost invariably, abandon it at precisely the wrong time.” He also said, “A course of investment, once charted, should be given time to work out. Patience is a crucial but rare investment commodity.”

    With so much talk of silver and gold and the patience required in those markets, here’s a look at two precious metals mining stocks in the portfolio of contrarian Guru David Dreman.  


  • The Year That Was - 2012

    This year was cathartic for me (and my portfolio).

    I began the year with a portfolio which has -20% in cash, i.e. I had debt which was 20% of my net asset value. My portfolio was also quite bloated with more than 40 different stocks. Most of the positions were smaller than $1000.  


  • Chinese Stock Market Valuation Is at the Lowest Level Since 2000

    While the U.S. stock market has enjoyed a smooth ride since the summer and attempted to make new highs, the stock market of China has been in constant decline. Chinese SSE Composite Index is now traded at about one-third of what it was five years ago. Although it is about 20% higher than its bottom in October 2008, the valuation of the Chinese stock market is at the lowest level since 2000, the earliest time that data is available for GuruFocus.

    You can view the daily updated Chinese stock market valuation here.  


  • Chairman & CEO, 10% Owner of TPC Ronald N. Tutor Sold 281,668 Shares

    Tutor Perini Corporation, formerly Perini Corporation, is a construction services company offering diversified general contracting, construction management and design/build services to private clients and public agencies throughout the world. Tutor Perini Corp. has a market cap of $560.7 million; its shares were traded at around $11.04 with a P/E ratio of 6.8 and P/S ratio of 0.1. Tutor Perini Corp. had an annual average earnings growth of 17.6% over the past 10 years.

    On June 13, 2012, Chairman & CEO, 10% Owner of Tutor Perini Corp. (TPC) Ronald N. Tutor sold 281,668 shares at an average price of $11.46. The total transaction amount is $3,227,915.  


  • Geus Aart De, Chairman of the Board & co-CEO of Synopsys Inc, sold $2,807,597 worth of shares

    Synopsys, Inc. is one of the suppliers of electronic design automation software to the global electronics industry. Synopsys Inc has a market cap of $4.18 billion; its shares were traded at around $29.25 with a P/E ratio of 16.3 and P/S ratio of 2.7. Synopsys Inc had an annual average earnings growth of 12.3% over the past 10 years.

    On June 7, 2012, Chairman of the Board & co-CEO of Synopsys Inc (SNPS) Geus Aart De sold 95,302 shares at an average price of $29.46. The total transaction amount is $2,807,597.  


  • Statoil Asa (STO): Worth a Look

    Background: Statoil, a Norwegian company, was formed in 1972 by the Norwegian parliament or Storting and was initially added to the New York Stock Exchange in 2001. Originally incorporated as a limited liability company, its original stated purpose was to become Norway’s instrument in the development of gas and oil.

    Becoming listed on the NYSE in 2001, the company was known as Statoil, ASA (STO) and since, has become known for development of the Norwegian Continental Shelf (NCS), becoming one of the world’s foremost petroleum sectors. They are the world’s No. 1 offshore operator and the second largest exporter to Europe for gas.  


  • David Dreman Talks about His Stock Picks in 'Think Stocks Not Treasurys'

    Legendary investor David Dreman explains the markets and why he is "in buying mode":

    Fear ruled the markets in 2011. Investors fretted that the Great Bear Market of 2007–08 would return, ­accompanied by another economic downturn. By August the S&P 500 had given up all the gains made in the first half of the year and was dropping rapidly into the red. Thank you, European crisis.  


  • Forbes Interview with Contrarian Investor Legend David Dreman, Pt. 2

    David Dreman is chairman of Dreman Value Management and this year released his new book,
    "Contrarian Investment Strategies: The Psychological Edge." In this interview with Steve Forbes, he discusses the U.S. dollar, energy stocks, why he likes financials like Hartford (HIG), cognitive psychology and why high frequency traders are vulture investors.  


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