Joel Greenblatt

Joel Greenblatt

Last Update: 02-16-2016

Number of Stocks: 851
Number of New Stocks: 208

Total Value: $9,210 Mil
Q/Q Turnover: 34%

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

Joel Greenblatt Watch

  • Gap May Be Poised for a Comeback

    Gap (NYSE:GPS) is one of the most iconic American brands and still has a solid economic moat. The company has been downsizing and closing stores, making room for cash to be deployed into higher-profit channels like ecommerce.


    It ended the first quarter with 3,794 company-operated and franchise store locations with almost 38 million square feet of retail space covering well-known brands like Banana Republic, Old Navy, Athleta, Gap and Gap Kids.

      


  • Bearish Sentiment in Becton Dickinson's Stock

    Becton Dickinson & Co. (NYSE:BDX) is a $33.87 billion market cap company that provides a broad range of medical devices and diagnostic products used in hospitals, doctors' offices, research labs and other settings.


    The med-company is trading at $159.55. Analysts have a consensus $163.53 price target on the stock. Yahoo! (NASDAQ:YHOO) Finance estimates a one-year target share price at $166.9. Also, investors will be paid a dividend of $2.64 at the end of the year. The dividend yield is 1.65%, which tries to protect the purchasing power. Dividend investors often pay attention to the track record of dividends payments and favorable expectations regarding dividend growth for the next year. This company has paid dividends since 1926; during the past 13 years, the highest yield was 2.44%, the lowest was 1.05%, and the median was 1.77%. Now it is close to a five-year low.

      


  • It's Time to Sell Joy Global

    Don’t believe the analyst hype. Despite both BofA Merrill Lynch and Goldman Sachs upgrading Joy Global (NYSE:JOY) stock in recent weeks, the long-term outlook for the coal industry is bleak. It might not go to zero, but its size and use as an energy source is dwindling.


    The company’s new initiatives direct service, hard rock and industrial minerals, reduced capacity, inventory reductions, share buybacks, new product development and high-growth markets may prove effective but in the end will likely fail to produce value for shareholders.

      


  • On Diversification

    On Diversification​The age-old question of exactly how many stocks to hold is likely never going to be definitively answered. There are entire books, even courses, on the subject after all. Since portfolio construction is more of an art than a science, in this post I want to break down relevant studies, examine historical data and analyze some of the best investors in an attempt to come up with the optimal strategy. As always, please share your comments and thoughts below!


    Talking points

      


  • Growing EPS for Viacom, Western Digital, Fossil

    Companies with growing EPS are often a good investment as they can return a very good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have a five-year growing EPS.


    Earnings per share of Waddell & Reed Financial Inc. (WDR) grew by 14% over the last five years; according to the DCF calculator, the stock, at the price of $22.41, is undervalued and trading with a margin of safety of 70%.

      


  • Undervalued Stocks With Wide Margin of Safety

    The following stocks are trading with a wide margin of safety according to the DCF calculator, and some of them have a very low P/E ratio. GuruFocus' All-in-One Screener can be used to find similar stocks. 


    D.R. Horton Inc. (DHI) has a market cap of $11.67 billion and a GuruFocus’ business predictability rating of 1 star. The stock has a price of $31.6 with a forward P/E ratio of 12.30, and according to the DCF calculator is trading with a margin of safety of 43%. During the last 12 months, the price of the stock has risen by 10% and is now 4.53% below its 52-week high.

      


  • General Motors Among Undervalued and Low PE Stocks

    The following stocks are trading with low P/E ratios. Most of the companies are greatly undervalued, according to the DCF calculator.


    Visteon Corp. (VC) is trading with a P/E ratio of 1.5. According to the DCF calculator, the stock has a fair value of $16.48; it was trading at $76.83 Wednesday. That means it is overpriced by 361%. The price has dropped by 21% during the last 12 months and is now 37.56% below its 52-week high and 29.12% above its 52-week low.

      


  • Dividend and Value Opportunities in the Large-Cap Pharmaceutical Space

    The health care sector and in particular pharmaceutical companies have underperformed recently. The chart below shows the performance of the health care sector (as represented by the XLV ETF) versus the Standard & Poor's 500 for the beginning of 2016.


      


  • Undervalued Companies With Growing EPS

    Companies with growing EPS are often a good investment as they can return a very good profit to investors. Here is a selection of the most undervalued companies according to the DCF calculator that have a five-year growing EPS.


    Atwood Oceanics Inc. (ATW) EPS grew by 11% over the last five years and according to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 95%.

      


  • Stocks Reach 5-year Lows

    According to GuruFocus' list of five-year lows, these guru stocks have reached their five-year lows: Blucora Inc. (NASDAQ:BCOR), SeaChange International Inc. (NASDAQ:SEAC), Harte-Hanks Inc. (NYSE:HHS) and Aegerion Pharmaceuticals Inc. (NASDAQ:AEGR).


    Blucora reached $4.96

      


  • Finding the Best Stocks to Invest In

    It takes time to find great investment ideas.


    I know I have to pass on at least eight ideas before two become research worthy, but it still doesn't guarantee that those two ideas are investment worthy.

      


  • Where Are Super Investors Shopping for Bargains?

    GuruFocus offers a lot of screens and tools I find highly useful and interesting for coming up with short lists of companies to look at.


    Frequently I go over the Aggregate Industry Trend screener. It allows you to quickly see in which industries value investing gurus like Joel Greenblatt(Trades, Portfolio), Richard Pzena (Trades, Portfolio), Andreas Halvorsen (Trades, Portfolio) and more than 150 others are putting their money to work and from where they are running as fast as possible. I also went through this exercise last month, and the differences are interesting as well.

      


  • Insiders Roundup: Theravance Biopharma, Western Gas, Upland Software

    The All-in-One Screener can be used to find insider buys and sells over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "March 2016."


    According to the above filters, the following are recent buys from company insiders in the past week.

      


  • 101 Financial Ratios and Metrics to Improve Your Investing Skills - Part 2

    Growth, Return, & Performance Ratios & Metrics



    Not enough investors know about the different ways of calculating growth. There is a big difference between the arithmetic growth rate and the geometric growth rate

      


  • Insiders Are Selling Facebook and Ford Motor

    The All-in-One Screener can be used to find insider buys and sells over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "March 2016."


    According to the above filters, the following are the recent buys from company insiders in the past week.

      


  • Gurus Must See a Wolverine Brand Recovery Coming


    Joel Greenblatt (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) both recently added to their Wolverine Worldwide Inc. (NYSE:WWW) positions. For those who believe in Wolverine's ability to revamp its brands, at current levels shares seem fairly priced or even underpriced.

      


  • Low P/E Stocks With Wide Margin of Safety

    The following stocks are trading with a very low P/E ratio. Most of them are greatly undervalued, according to the DCF calculator.


    Braskem SA (BAK) is trading with a P/E ratio of 4.05. According to the DCF calculator, the stock has a fair value of $24.05. While it is trading at about $13, that means it is undervalued by 45%. The price has risen by 51% during the last 12 months and is now 12.21% below its 52-week high and 112.46% above its 52-week low.

      


  • Why Tyson Foods Is an Undervalued Stock

    Tyson Foods Inc. (NYSE:TSN) is a $23.53 billion market cap company. Tyson is one of the world's largest suppliers of beef, chicken, pork, and prepared foods.


    The company has a great portfolio of products, and despite their lower margins in meat products, the firm is guided by commodity prices. Tyson operates in a competitive industry, and it has to manage to quickly shift products in order to maintain its position. No one can doubt that the company is a great meat processor with presence in the chicken, beef, and pork segments, which are substitute products depending on prices.

      


  • How to Be a Stock Market Genius 'Even If You're Not Too Smart'

    Guru Joel Greenblatt (Trades, Portfolio) is a value investor and author of “You Can Be A Stock Market Genius Even If You’re Not Too Smart,” a book I read recently and felt a few of the quotes in it were worth sharing.


    There are many great quotes in the book, but one quote that really hit home for me was “If your goal is to beat the market, an MBA or a Ph.D. from a top business school will be of virtually no help.”

      


  • Five Cheap Stocks with Improving Earnings

    Buying low is half the secret to making money in the stock market. But as every seasoned investor knows, a cheap stock can stay cheap for a long time.


    If you can catch an inflection point when a company’s fortunes are improving but its stock is still cheap, you can make good money. That’s what I’ll try to do in today’s column.

      


  • 5-Year Lows: Lumber Liquidators, Park Electrochemical, Landauer, Harmonic

    According to GuruFocus' list of five-year lows, these Guru stocks have reached their historical low prices: Lumber Liquidators Holdings Inc., Park Electrochemical Corp., Landauer Inc., Harmonic Inc.


    Lumber Liquidators Holdings Inc. (NYSE:LL) reached $11.11

      


  • 'Outsmarting the Crowd': A Book for Beginning Investors

    Bogumil K. Baranowski just published a book called "Outsmarting the Crowd," his day job is managing a private investment fund at Tocqueville Asset Management, and he has over a decade of investing experience. Like so many professional money managers, he lives and works in New York City. What I loved about the book is that Baranowski is truly passionate about helping readers develop a succesful investment style. The book's summary says its about the Buffett-Graham style of investing, but I think Baranowski's presented teachings are much more in the late Warren Buffet style of investing. Buffet/Fisher would be a more apt comparison in my humble opinion.


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  • Top Insider Buys, Sells of the Week

    The All-in-One Screener can be used to find insider buys and sells over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying to “$1,000,000+” and duration to "February 2016."


    According to the above filters, the following are the recent buys from company insiders in the past week.

      


  • CEO of ARRIS International Invests in Company

    Robert Stanzione (Insider Trades), CEO, president and chairman of ARRIS International PLC (ARRS), bought 10,000 shares of the company on Feb. 23.


    The average price per share was $22.40 for a total transaction of $224,000.

      


  • American Airlines Among Stocks Trading With Low P/E

    The following stocks are trading with a very low P/E ratio. Most of them are largely undervalued, according to the DCF calculator.


    USG Corp. (USG) is trading with a P/E ratio of 3.00. According to the DCF calculator, the stock has a fair value of $72.13, while it is trading at about $20.22. That means it is undervalued with a margin of safety of 72%. The price has dropped by 29% during the last 12 months and is now 38.50% below its 52-week high and 27.57% above its 52-week low.

      


  • Greenblatt Sells Stake in Twenty-First Century Fox

    Joel Greenblatt (Trades, Portfolio), founder and managing partner of Gotham Asset Management, acquired more than 200 new stakes in the fourth quarter, but it was his divestiture in Twenty-First Century Fox Inc. (NASDAQ:FOXA) that got the most attention.


    Greenblatt’s most noteworthy fourth-quarter transaction was the sale of his 2,590,574-share stake in Twenty-First Century Fox, a New York-based mass media company, for an average price of $29.03 per share. The divestiture had a -0.68% impact on Greenblatt’s portfolio.

      


  • Stocks Tumble to 5-Year Lows

    According to GuruFocus' list of five-year lows, these guru stocks have reached their historical low prices: Oceaneering International Inc. (NYSE:OII), Rackspace Hosting Inc. (NYSE:RAX), Genesis Energy LP (NYSE:GEL) and Rayonier Inc. (NYSE:RYN)


    Oceaneering International reached $27.12

      


  • Chuck Royce's Top Buys During the 4th Quarter

    For more than 40 years, Royce & Associates, investment adviser to The Royce Funds, has been managing micro-cap, small-cap and small/mid-cap portfolios. Chuck Royce (Trades, Portfolio) is its chief executive officer, is one of the pioneers in small-cap investing and enjoys one of the longest tenures of any active mutual fund manager.


    Following are stocks the guru added to his portfolio or increased in the fourth quarter.

      


  • Which Industries Are Super Investors Dumping and Where Are They Shopping?

    Like most value investors, I’m not really a macro guy.


    I just go through filings alphabetically, chase leads like insider buying and guru buying, go over 52-week low lists, etc., and subsequently judge the fundamentals of each business individually to determine whether I like it as an investment or not. On a rare occasion I’m tempted to take a position in an ETF on the Russian stock market or the Greek stock market but in practice ended up owning a few specific Greek stocks based on their fundamentals.

      


  • Guru Stocks That Have Outperformed S&P 500

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    JetBlue Airways Corp. (JBLU) has a market cap of $6.78 billion, and during the last 12 months has outperformed the S&P 500 Index by 38.1%. Six gurus are currently holding the company.

      


  • Guru Stocks at 52-Week Lows

    According to GuruFocus' list of 52-week lows, these guru stocks have reached their 52-week lows.


    Berkshire Hathaway reached the 52-week low of $187,001.00

      


  • Risk and Reward in Avon Products

    Headquartered in New York City, Avon (AVP) is an international manufacturer and direct selling company in the beauty, household and personal care categories. The company is currently paying close to 10% in dividends to investors, pleading with the market to wait for the turnaround. It could be a profitable thing to do, at least in the short term. Just last month, the stock was in the $4.00 range and now at $2.56 (as of 1:53 pm EDT), it looks interesting, especially with faces of the brand like Maria Sharapova, Lucy Hale, Julianne Hough, and Fergie still relevant in today’s hyper socially-connected world.


      


  • Joel Greenblatt's 2016 Outlook: Same Simple Secret to Long-Term Investment Success

    After a disappointing year for any strategy, there are really only two main questions to ask:

      


  • 2015 Was a Good Year for Gun Companies

    Whether it is due to President Barack Obama’s pledge to make gun control a centerpiece of his final year in office or a byproduct of terrorism, both foreign and domestic, and concerns about greater regulation, U.S. gun sales and permit applications have soared.


    The last five weeks of 2015 ranked among the 10 biggest weeks ever for firearm background checks, and Black Friday was the single biggest day for gun purchases on record, with more than 185,000 background checks processed.

      


  • Weekly CEO Buys Highlight: FS Investment, Opko, Ambac, Calamos, Praxair

    These are the largest CEO buys during the past week, according to GuruFocus' Insider Data. The overall trend of CEOs is illustrated in the chart below:


    FS Investment Corp.: CEO Michael C. Forman bought 305,103 shares

      


  • Gurus Trim Positions in Tobacco Companies

    It is certainly no secret that demographics play key roles in companies’ marketing strategies.


    Demographics in general are important. Certain products are meant to appeal to specific groups; if they happen to attract consumers from untargeted groups, that is a happy albeit coincidental byproduct for the company.

      


  • eBay, Visa Among Companies With High Greenblatt ROC

    Thanks to GuruFocus' All-In-One Screener, we can select stocks that are trading with a very high ROC as defined by Joel Greenblatt (Trades, Portfolio).


    eBay Inc. (EBAY) has a ROC of 133.05%, which is ranked higher than 95% of companies in the Global Specialty Retail industry. 

      


  • Alcoa Continues Sliding Waiting for an Upside Movement

    Alcoa (NYSE:AA), one of the world's largest producers of aluminum, alumina and engineered lightweight metal products used in a variety of different end markets, has been trading down since February 2015, when the last rally was seen.


    In 11 months, the stock plunged 45%.

      


  • FedEx Reports Solid Results, but Price Plummets

    Several hedge fund managers initiated new positions in FedEx Corporation (NYSE:FDX), the leader in global express delivery services, in the third quarter and lost ground thanks to a price decline.


    FedEx provides guaranteed domestic and international air express, residential and business ground package delivery, heavy freight and logistics services.

      


  • Joel Greenblatt Invests in General Mills

    Guru Joel Greenblatt (Trades, Portfolio) is a value investor who uses Benjamin Graham's value investing philosophies when deciding whether to buy or sell securities. He looks for long term growth opportunities in companies that have a large margin of safety. Greenblatt also teaches at Columbia University where he teaches value and special situation investing.


    He is also an author of several books including "You Can Be a Stock Market Genius," "The Little Book That Beats the Market," and "The Big Secret for the Small Investor." Greenblatt is also the co-chief investment officer of Gotham Asset Management, which he manages alongside Robert Goldstein. Together they have over 50 years of investment experience.

      


  • 5-Year Lows: Kennametal, Buckle, Carpenter Technology, Suburban Propane Partners

    According to GuruFocus' list of five-year lows, these guru stocks have reached their five-year low prices: Kennametal Inc., Buckle Inc., Carpenter Technology Corp., Suburban Propane Partners LP.


    Kennametal Inc. (NYSE:KMT) reached $19.20

      


  • Western Union Among David Abrams' Holdings Trading With Low P/S

    Several stakes currently found in David Abrams (Trades, Portfolio)'s portfolio are trading with low P/S ratios.


    Abrams founded Abrams Capital Management, and the majority of Abrams’ holdings are in the banking industry, with Western Union (NYSE:WU) accounting for about 26% of his portfolio and Wells Fargo (NYSE:WFC) at about 10%.

      


  • A Conversation Between Two Value Investing Legends – Joel Greenblatt and Howard Marks

    There was an unusual number of successful value investors to come out of the Wharton Business School in the late 1970s.


    Joel Greenblatt was one of those.

      


  • Weekly CEO Buys Highlight: Prospect Capital, Sears Holdings, Calamos Asset Management, Opko Health, FS Investment

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    Prospect Capital: CEO John F. Barry bought 2,805,500 shares

      


  • RS Investment Increases Holdings in Ulta Salon, Noble Energy and Fortune Brands

    Ulta Salon Cosmetics & Fragrances (NASDAQ:ULTA), Noble Energy (NYSE:NBL) and Fortune Brands Home & Security (NYSE:FBHS) saw huge increases in RS Investment Management's portfolio during the third quarter.


    RS Investment is a privately held subsidiary of Guardian Investor Services LLC, a wholly owned subsidiary of The Guardian Life Insurance Company of America, a mutual insurer with a 153-year history. It invests in public equity and fixed income markets across the world, as well as both growth and value stocks.

      


  • 'Tis the Season

    Clothing, both formal and casual, is always a popular choice for Christmas gift giving.


    If I didn’t know that before, I certainly learned it when I was with a sportswear trade magazine, and the staff put together Christmas-themed issues with photos of clothing being sold across the globe. The first time I worked on such an issue, I was constantly amazed by the variety of clothing that was available.

      


  • Robert Karr Buys GrubHub, Alibaba and 3 Other Stocks in 3rd Quarter

    Robert Karr (Trades, Portfolio), the founder of Joho Capital and one of the Tiger Cubs, manages a $349 million portfolio composed of 11 stocks; during the third quarter he closed 12 trades and just five of them were buys.


    He increased his stake in GrubHub Inc. (GRUB) by 65.35% with an impact of 8.66% on the portfolio. The current stake is 21.92% of his total assets and 3.70% of the company’s outstanding shares.

      


  • Mattress Firm's Stock Plummets After Beating Estimates

    Mattress Firm Holding Corp (NASDAQ:MFRM) operates as a specialty retailer of mattresses and related products and accessories in the U.S. Shares of the company tumbled almost 5% in Monday’s trading after reporting better-than-expected earnings for its fiscal third quarter ended Nov. 3.


    Earnings per share increased by 48% to 67 cents per share compared to 45 cents per share in the same period the year before. Excluding special items, the adjusted earnings came in at 82 cents per share, beating estimates by 1 cent. Further, revenue rose 50.7% year-over-year to $699.5 million and beats by $38.87 million, due to incremental sales from acquired and new stores, and comparable-store sales growth of 3.8%.

      


  • Donald Smith Increases Stakes in Citigroup and Alamos Gold

    Donald G. Smith is the CIO of Donald Smith (Trades, Portfolio) & Co., a registered investment adviser specializing in managing value equity accounts for tax-exempt and taxable funds, and high net worth individuals. The firm was formed in 1975 as Home Portfolio Advisors Inc.


    Smith’s portfolio has 77 stocks. The following are his most weighted buys.

      


  • 3 Gurus Add Beauty to Portfolio With Regis Corp.

    After getting a haircut today and thinking about beauty salons, I decided to research Regis Corporation (NYSE:RGS),  which is the largest hair salon chain in the world with over 10,000 salons.


    Some of the company's brands and salons include City Looks, Famous Hair, Best Cuts, Saturday’s, HCUK, Supercuts, Pro-Cuts, Hair Crafters, Magicuts, Mastercuts, Borics Hair, Hair by Stewarts, SmartStyle, Cost and Vidal Sassoon.

      


  • Medtronic Continues to Report Solid Numbers

    Medtronic PLC (NYSE:MDT) is a global medical device manufacturer that has leadership positions in the pacemaker, defibrillator, orthopedic, diabetes management and other medical markets. Shares of the company were volatile in Thursday’s trading after reporting better-than-expected earnings for its fiscal second quarter of the fiscal year 2016.


    Beats estimates by 3 cents, revenue in line

      


  • Insiders Sell Twitter and Cannabis Science, Buy DSW and WhiteHorse

    The All-In-One Screener can be used to find insider buys and sales over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying/All Insider Selling to “$1,000,000+” and duration to "November 2015" and “December 2015.”


    According to the above filters, the following are the recent buys from company insiders in the past week.

      


  • With U.S. Equities Remaining Bullish, How Do You Invest in Gold?

    The U.S. Federal Reserve is widely expected to increase interest rates in the near future as the country’s economic prospects continue to show promise. This has been the story for the last 12 months after ending the quantitative easing program in Q3 last year.


    The U.S. economy has been on a recovery trend since 2011 in the aftermath of the 2008 and 2009 global financial crises. This is illustrated by the nature in which U.S. equities have rallied over the last four years. While there have been dips and rebounds along the way, the overall trend has remained bullish to date as investors continue to be optimistic with regard to the country’s current economic condition.

      


  • A Look at Most Recent Insider Trades

    The All-In-One Screener can be used to find insider buys and sales over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying/All Insider Selling to “$1,000,000+” and duration to "November 2015."


    According to the above filters, the following are the recent buys from company insiders in the past week.

      


  • Now Is Definitely the Time to Buy Whole Foods

    Whole Foods Market (NASDAQ:WFM) has been called "whole paycheck" and a recent pricing study by Bloomberg Intelligence indicates Whole Foods Market is more expensive than Trader Joe’s but less expensive than smaller rival The Fresh Market (NASDAQ:TFM). Thanksgiving Day menu items at Whole Foods were 22% higher than Trader Joe's but 15% less than The Fresh Market


    Either way, customers are truly raving fans of Whole Foods Market. The company is the largest retailer of natural and organic foods in the U.S. and besides a five-star rating on GuruFocus and seven good signs, Joel Greenblatt (Trades, Portfolio) is the only guru with a sizeable position. He owns 1,664,348 shares. I can envision many others coming on early in 2016, especially at this value.

      


  • 'Alcoa's Transformation Is Paying Off' Presentation

    GuruFocus recently published an article bringing to my attention that a number of well-known investors like Seth Klarman (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Paul Singer (Trades, Portfolio) have recently purchased shares of aluminum company Alcoa (NYSE:AA).


    I found the video below to be extremely helpful in giving a great overview of the company. It's a presentation titled "Alcoa's Transformation is Paying Off," given by CEO Klaus Kleinfeld. The video was published in May 2014. Readers should keep in mind that Alcoa's stock price has dropped from ~$13 per share at the time of the presentation to today's current price of $9.41 per share largely due to the drop in aluminum prices.

      


  • Top 5 Dividend Stocks Among Guru Holdings

    Even though the S&P 500 is not particularly cheap right now with an average P/E of nearly 20, there are some very juicy dividends that pop up if you screen for it. The top yielding stocks, however, are often not the most safe dividends as they are usually distressed companies.


    Investors often go shopping a little below the absolute highest dividend yielding stocks, but for this article, I decided to do something different. Instead, I compiled a list of the top yielding stocks held by the gurus. Every stock on this list is held by many of the absolute best value investors as selected by GuruFocus. I have to warn you: The list contains several energy stocks that look speculative, but at dividends from 7.56% up to 12.88%, they also look very lucrative. 

      


  • These 6 Bargain Stocks Are Still in Play

    Over the last six months, I’ve written more than 40 articles for GuruFocus. In this business, you have to take the good with the bad, especially in the performance column. With that in mind, I’ve gone back over my articles and found these stocks are even better bargains now than they were at publication.


    I believe in dollar cost averaging, or in this case dollar down averaging, as long as the underlying company is fundamentally rock solid and its stock still has the same upside potential from my original price point.

      


  • 5-Year Lows: Loral Space & Communications, Allegheny Technologies, Alliance Resource Partners LP, United States Steel

    According to GuruFocus' list of five-year lows, these guru stocks have reached their historical low prices: Loral Space & Communications Inc., Allegheny Technologies Inc., Alliance Resource Partners LP and United States Steel Corp.


    Loral Space & Communications Inc. (NASDAQ:LORL) reached $43.76

      


  • Why ValueAct Capital Is Buying Towers Watson

    ValueAct is led by guru Jeff Ubben (Trades, Portfolio) and acquires large stakes in companies to gain board seats and influence management. The firm tends to take a constructive and cooperative approach instead of the more confrontational style exemplified by Carl Icahn. Just like other activists it does try to find companies that have performed poorly with fixable problems.


    It can be interesting to buy into the companies they target when they are just getting on board because you may be able to profit from their campaign for change. Its latest target is Towers Watson & Co. (NASDAQ:TW). It is a professional services company that helps organizations with risk and financial management, offers solutions to manage employee benefits, talent management, rewards, risk and capital management and health care exchanges for retirees and active employees. Clients include 92% of Fortune 500 companies and 84% of the Fortune 1000. Towers Watson also advises insurance companies.

      


  • Buckle's Fair Value Is at Least 50% Higher

    The billion-dollar brand, Buckle (NYSE:BKE) has seen its stock price drop from $50 down to $30.54 since April. Now trading at a year low, it looks like a bargain that could produce between 10% and 12% through the next decade. Few guru investors have taken notice, with the largest position going to Joel Greenblatt (Trades, Portfolio) with 207,707 shares.


      


  • Joel Greenblatt Swings for the Fences With These 2 Additions

    Value investor Joel Greenblatt (Trades, Portfolio) started to follow Benjamin Graham during his junior year at Wharton College. After he read an investment article written by Graham his entire life changed. “As soon as I read that article, I said, 'Ah, this makes sense to me,' and I started to read everything that he wrote, and I started to really look at the world through a different lens.” He then goes on to describe what he really learned from Graham was figuring out what a company was worth and then paying a lot less for it.


    Greenblatt started a hedge fund, Gotham Capital, with $7 million in 1985. Below is a YouTube interview with Joel Greenblatt (Trades, Portfolio) and Howard Marks (Trades, Portfolio).

      


  • Not Even a 21% Dividend Hike Justifies Prudential's High Price

    Prudential Financial Inc. (NYSE:PRU) has raised its quarterly dividend to 70 cents per share. This way, the stock yields 3.32% if the share price stays at current levels ($85.65). However, thanks to GuruFocus we can find that dividend yield is ranked lower than 69% of the 107 Companies in the Global Insurance - Life industry. A simple question arises: Is it worth it?


    What makes possible the dividend hike is the solid financial position, and we expect it to use excess capital to continue repurchase shares and for dividend payments. We should note that Prudential has a history of deploying capital through share repurchases, dividend as well as acquisitions.

      


  • Finding Undervalued Industrial Stocks in the U.S. With the All-In-One Screener

    There is a general perception that investing in stocks is all about the products and services that companies provide. That, of course, is true but not exclusively. It is also true that investing is about the companies whose products and services contribute to other companies’ success.


    For example, a company may manufacture and sell recreational clothing, but other companies are behind the fabrics, inks, dyes and other materials that make the final products possible. Still other companies are involved in the transportation and distribution of those products.

      


  • Joel Greenblatt – The Magic Superinvestor

    Sir Isaac Newton once said, “If I have seen further than others, it is by standing upon the shoulders of giants.”


    This is the first in a series profiling superinvestors who have had an impact on the value investing world. Up first is Joel Greenblatt (Trades, Portfolio), the mastermind behind the simple and effective magic formula, holder of one of the best 10-year investment records at 40% to 50% CAGR.

      


  • The Story Every Investor Should Know About GoPro

    GoPro (NASDAQ:GPRO) is a company with $1.82 billion in sales and is a manufacturer of Action Cameras, Smart Remotes, Tripods and accessories. Its cameras are shipped to 200-plus countries worldwide. The company's products started with the GoPro Hero 35mm all-season sports camera, first sold in 2005. GoPros are now sold in 15,000 retail stores and 80 countries worldwide.


    The company is currently popular with active individuals who love it for its ability to help them record and share their most meaningful experiences. The company has been growing 43% quarter over quarter and has expanded into markets such as Brazil and Munich. Investors such as Joel Greenblatt (Trades, Portfolio) have bought or sold stock in the company. Greenblatt started buying shares in the company in 2014.

      


  • Tweedy, Browne Net Net Stock Darling Shinko Shoji Now Up 49%

    Tweedy, Brown net net darling Shinko Shoji is now up 49% from Net Net Hunter's initial review of the company in July of 2014.

    Last month it came out that legendary value investment firm Tweedy, Browne had added the electronics manufacturer to its portfolio. At the time of the disclosure, Tweedy Browne (Trades, Portfolio) owned 1.77% of the firm's outstanding shares.  


  • Is Strayer Education a Buy in the For-Profit College Industry?

    Strayer Education (NASDAQ:STRA) manages for-profit colleges. It reported third-quarter results last week, and the stock has dropped 9% to $53 per share. Strayer University was founded in 1892 and currently has approximately 80 physical campuses (see campus locations below). The company offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration and criminal justice. Strayer University also offers an executive MBA online through the Jack Welch Management Institute.


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  • CFO of Actuant Corp. Buys 24,900 Shares of Company

    Andrew Lampereur (Insider Trades), executive vice president and CFO of Actuant Corp. (ATU), bought 24,900 shares of the company on Oct. 27. The average price per share was $21.75 for a total transaction cost of $541,575. Actuant is a diversified industrial company that serves customers in more than 30 countries. The company serves a variety of niche markets including branded hydraulic tools and solutions, specialized products and services for energy markets, and highly engineered position and motion control systems. Actuant has a market cap of $1.35 billion and a P/S ratio of 1.05.


    From 2012 to 2015, ATU insider sales decreased in number and volume, while ATU insider buys increased in volume. There were 18 insider sales of the company in 2012, totaling 1,166,310 shares; in comparison, there was only one insider sale of 5,117 shares so far this year. The number of ATU insider buys ranged from three to five during this time, but increased from a total of 10,417 shares to 72,176 shares.

      


  • CFO of Arctic Cat Buys 4,000 Shares of Company Stock

    Christopher Eperjesy (Insider Trades), CFO of Arctic Cat Inc. (ACAT), bought 4,000 shares of the company on Oct. 23. The average price per share was $18.05, for a total transaction of $72,200.


    Arctic Cat engineers, manufactures and markets all-terrain vehicles (ATVs), side-by-sides and snowmobiles, as well as related parts, garments and accessories under the Arctic Cat and Motorfist brand names. The company has a market cap of $267.48 million and a P/S ratio of 0.40.

      


  • Gap Inc. Has 50% Upside Potential

    Gap Inc. (NYSE:GPS), the iconic American brand, has experienced a very rough patch in 2015, starting the year at $42 and currently trading down 35%, under $27 per share.


    Guru investors Edward Lampert (Trades, Portfolio) (2,057,403 shares), James Barrow (Trades, Portfolio) (2,206,049 shares), and Joel Greenblatt (Trades, Portfolio) (1,022,286 shares) all own small pieces of the company. Yet, looking at the stock on a short-term basis, the financial data tells a very depressing story. Revenue growth is below the company’s five- and 10-year averages and EPS, cash flow and book value growth are all negative in the last 12 months.

      


  • Should You Be Bullish or Bearish on Mattel?

    Mattel (NASDAQ:MAT) reported Q3 2015 results yesterday and missed expectations. Revenue of $1.79 billion missed analyst estimates of $1.89 billion. Net income came in at $223.8 million and an EPS of 71 cents per share, compared to analyst expectations of 79 cents per share. Today, Oppenheimer released an optimistic note on the company and shares rallied 6% to close at $23.89 per share. Mattel is one of the world’s largest toy makers and sells popular brands such as Barbie, Hot Wheels, Monster High, American Girl, Thomas & Friends, Fisher-Price and Mega Brands.


    Non-GAAP results below

      


  • A Look at Recent Insider Trades

    The All-In-One Screener can be used to find insider buys and sales over the last week by clicking on the Insiders tab and changing the settings for All Insider Buying/All Insider Selling to “$1,000,000+” and duration to "October 2015."


    According to the above filters, the following are the recent buys from company insiders in the past week.

      


  • Guru Stocks at 52-Week Lows: Walmart, VMWare, Intuitive Surgical, Macy's, Nordstrom

    According to GuruFocus list of 52-week lows, these guru stocks have reached their 52-week lows.


    Walmart Stores Inc. reached the 52-week low of $59.33

      


  • Cantel Medical Corp. Insider Sells Shares

    Andrew Krakauer (Insider Trades), CEO of Cantel Medical Corp. (CMN), sold 22,981 shares of the company on Oct. 14. The per share was $54.22 for a total transaction of $1,246,030. Cantel Medical Corp. delivers infection prevention and control product and services for patients, caregivers, and other healthcare providers, which improve outcomes, enhance safety and help save lives. The company has a market cap of $2.23 billion and a P/S ratio of 4.02.


    The number of insider sells ranged from 14 to 19 during 2012 to 2015. The volume of insider buys decreased by about 60% during the same period of time. There were 18 insider sells with the company in 2012, totaling 682,227 shares. In comparison, there were 19 insider sells of CMN totaling 210,821 shares in 2015. The month end price increased about three-fold during this time. 1444929791979.png 1444929802730.png Krakauer sold 384,925 shares of the company in 11 transactions since April 2010. The value increased about 800% since the sell. Director Ann Berman (Insider Trades) also sold 2,462 shares of the company on Oct. 5. The average price per share was $56.67. Additionally, CMN Chairman and 10% owner, Charles Diker (Insider Trades), also sold 27,415 shares three days before Berman. The average price per share was $56.24. For more information about insider transaction with the company, click here.

      


  • Joel Greenblatt Sells Johnson & Johnson, Flowserve

    Joel Greenblatt (Trades, Portfolio) is the founder and managing partner of Gotham Asset Management LLC, which offers four diversified long/short equity mutual funds.


    Greenblatt manages a portfolio composed of 915 stocks with a total value of $11.9 billion. During the last quarter, he traded more than 1,000 stocks and the following are the largest based on the impact on his portfolio.

      


  • September Performance Matches Historically Bad Month for Market

    September has historically been a tough month for the market, and this past month was no exception. In particular, the last day of the month is often one of the worst days of the year for the market. According to research from Bespoke, the Standard & Poor's 500 has only had positive returns 38% of the time on Sept. 30 dating back to 1945.


    For the last week of September, the S&P 500 was down 2.3%, the second-worst week of the year so far since the August selloff. CNBC reported that the global markets were set to post their worst quarterly performance since 2011, with the Shanghai Composite as the lowest performer, with a 25% loss.

      


  • Guru Stocks at 52-Week Lows

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Baxter International Inc. reached the 52-week low of $33.30

      


  • Joel Greenblatt - Current Market Volatility: A Return to an Appreciation for Risk

    After roughly tripling over the last 6 years and with no substantial corrections over the last 4, most market indexes fell approximately 6% in August. However, the more important development for most market participants may end up being the return to an appreciation for risk. After such a long bull run, at the end of July we wrote the following in our Second Quarter letter to investors:


      



  • Activist Hedge Fund Manager Edward Lampert Increases Stake in Lands’ End

    Edward S. Lampert of Sears Holding (NASDAQ:SHLD) disclosed on Sept. 25 that he increased his stake in Lands’ End Inc. (NASDAQ:LE) by purchasing an additional 299,878 shares.


    After the transactions, the trader held 9.03 million shares. The stock has dropped 35.65% over the past year and traded around $26.84 per share Monday morning, which was near its June 2014 price.

      


  • A Look at Joel Greenblatt's Investment in Automatic Data Processing

    During the second quarter, Joel Greenblatt (Trades, Portfolio) increased his stake in Automatic Data Processing Inc. (ADP) by 6,692.15% with an impact of 0.34% on his portfolio. He is now the company's fourth-largest shareholder with 524,626 shares, which is 0.11% of the company's outstanding shares.


    The company

      


  • 5-Year Lows: Consol Energy Inc., QEP Resources Inc., Hancock Holding Co., Patterson-UTI Energy Inc.

    According to the GuruFocus list of five-year lows, these guru stocks have reached their five-year lows: Consol Energy Inc., QEP Resources Inc., Hancock Holding Co. and Patterson-UTI Energy Inc.


    Consol Energy Inc. (NYSE:CNX) reached $10.44

      


  • Ray Dalio Buys Chipotle Mexican Grill and Foot Locker in Q2

    Ray Dalio (Trades, Portfolio) founded Greenwich, Connecticut-based hedge fund Bridgewater Associates in 1975. As of the second quarter, it had more than $165 billion under management. Throughout its 40-year history, Bridgewater has been recognized as a top-performing manager and an industry innovator. Bridgewater was one of the few firms to have positive performance during the 2008 financial crisis. Dalio's second-quarter portfolio was composed of 308 stocks with a total value of $10.83 billion, and the below listed trades were the most weighted buys during the quarter.


    Dalio increased by 310% his stake in Chipotle Mexican Grill Inc. (CMG) with an impact of 0.12% on his portfolio.

      


  • Bed Bath & Beyond Worth a Look as It Trades Near 52-Week Lows

    Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported Q2 2015 results Thursday of $2.99 billion in revenue and $1.21 in earnings per share. EPS met estimates, but revenue missed expectations by $40 million. Shares of Bed Bath & Beyond closed Friday near their 52-week low of $59 per share, down almost 22% year to date.


    Company

      


  • Dillards Is Worth Investigating After Falling 36%

    Dillards (NYSE:DDS) is a clothing retailer that also sells cosmetics, fashion accessories and home furnishings. It operates 297 stores in 29 states, primarily in the Southwest, Southeast, and Midwest regions of the United States along with an online store. The stock has recently fallen 36% from its high of $141/share to the current price of $90/share.


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  • Barnes & Noble, Pier 1 Among the Most Popular Small-Caps

    Though small-cap stocks present more risks and volatility for investors, it also offers arguably the largest possible returns and chance for a “ten-bagger.” With the advantage of flying under the radar, small-cap investors can be shielded from constant analyst coverage and institutional investors.


    Small-cap stocks are generally defined as having a capitalization between $300 million and $2 billion. Using the All-In-One Screener, the following five stocks are the most widely held small-caps among the gurus as of the second quarter.

      


  • Five-Year Lows: Hatteras Financial, Apollo Investment, Navistar International and Potlatch

    According to GuruFocus list of five-year lows, these Guru stocks have reached their five-year low prices: Hatteras Financial Corp., Apollo Investment Corp., Navistar International Corp. and Potlatch Corp.


    Hatteras Financial Corp. (NYSE:HTS) reached $16.20

      


  • Joel Greenblatt Increases His Position in Dick’s Sporting Goods

    Joel Greenblatt (Trades, Portfolio) is founder and managing partner of Gotham Asset Management LLC. He is known for the invention of Magic Formula Investing. He is the author of two investment books, including "The Little Book that Beats the Market." He is also an adjunct professor at the Columbia Business School.


    Greenblatt tries to find cheap and good companies. He looks for value with a catalyst. Greenblatt likes special situations and thinks that they are simply different places to find cheap stocks. In his own hedge fund, Greenblatt uses the basic principles in the Magic Formula: Look for high ROC and high earnings yield. He tries to figure out what "normalized earnings" will be 3-4 years into the future. Greenblatt makes sure the stock is very cheap based on normalized earnings.

      


  • Procter and Gamble’s CFO on the Company’s Transformation

    In 2015 Procter & Gamble (NYSE:PG) reported total sales revenue of $76.3 billion. In recent quarters the company’s topline sales have been consistently struggling. In 2015 sales revenue grew at a rate of -5% following 1% revenue growth in 2014. In a discussion at the Barclays Global Consumer Staples Conference, Jon Moeller, Procter & Gamble’s chief financial officer, provided his insight on the firm’s transformation and direction.


    Current market environment

      


  • Joel Greenblatt Increases His Position in Cooper Tires

    Joel Greenblatt (Trades, Portfolio) is founder and managing partner of Gotham Asset Management, LLC. He is known for the invention of Magic Formula Investing. He is the author of two investment books, including Joel Greenblatt (Trades, Portfolio): "The Little Book that Beats the Market." He is also an adjunct professor at the Columbia Business School.


    Greenblatt tries to find cheap and good companies. He looks for value with a catalyst. Greenblatt likes special situations and thinks that they are simply different places to find cheap stocks. In his own hedge fund, Greenblatt uses the basic principals in the Magic Formula: Look for high ROC and high earnings yield. He tries to figure out what "normalized earnings" will be 3-4 years into the future. Greenblatt makes sure the stock is very cheap based on normalized earnings.

      


  • Five-Year Lows: Superior Energy Services, Corporate Office Properties Trust, Allegheny Technologies, Joy Global

    According to GuruFocus list of five-year lows, these Guru stocks have reached their five-year lows: Superior Energy Services, Corporate Office Properties Trust, Allegheny Technologies, and Joy Global.


    Superior Energy Services Inc. (NYSE:SPN) Reached $13.64

      


  • American International Group One of Most Weighted Buys in Q2 2015

    The hedge fund American International Group (NYSE:AIG) in its last quarterly 13F reported a total value of its portfolio of $25 billion, with an increase of 2.94% since the previous quarter. During Q2 2015, the firm bought 341 new stocks and increased 1,794 of its existing stakes. The following are the most heavily weighted buys during the quarter.


    It bought shares of Allergan PLC (AGN) with an impact of 0.20% on its portfolio.

      


  • Monster Beverage Is Overpriced

    The Guru Jeff Auxier (Trades, Portfolio), during the last quarter, started a new position in Monster Beverage Corp (MNST). He bought 12,100 shares and is now the investor with the most weighted stake of MNST on his portfolio since the investment is about 0.34% of his total assets.


    The company

      


  • Genuine Parts Company: An Attractive Stock That Mario Gabelli Thinks Will Double

    Genuine Parts Company (NYSE:GPC) sells under the Napa brand for automotive replacement parts, the Motion Industrial brand for industrial replacement parts, the S.P. Richards brand for office products and the EIS brand for electrical/electronic materials. The company was founded in 1928 in Atlanta, Ga. GPC has 2,600 locations with stores in the U.S., Canada, Australia, New Zealand, Mexico and Puerto Rico. The stock current trades at ~$84/share with a PE ratio of 17.4.


    The below charts show percent of revenue and operating profit by segment for the most recent six months. You can see the automotive segment accounts for the majority of its profit. A tailwind helping GPC, and other other auto parts retailers, is that Americans are holding onto their cars longer. According to IHS, the average age of vehicles on the road in the U.S. has hit a high of 11.5 years. In the latest six months, the office products segment was the bright spot by contributing 15.7% Y-O-Y growth.

      


  • Joel Greenblatt Boosts Stake in B&G Foods

    Joel Greenblatt (Trades, Portfolio), the manager of Gotham Asset Management LLC, heavily increased his stake in B&G Foods Inc (BGS) by 647.09%, becoming the second main shareholder of the company with 661,921 shares ammounting to 1.14% of BGS’ outstanding shares.


    The investor is well known thanks to his description of return on capital as described in his “The Little Book That Still Beats the Market”. B&G's ROC was 52.08% in December 2014 and 68.37% in June 2015.

      


  • Xerox Expands Health Care Technology and Launches New Brand Strategy

    Xerox (NYSE:XRX) is a well-known brand in the technology industry. Its business focuses on two main aspects which include document technology and business process services. In recent quarters it has continued to struggle to gain market share versus its dominant peers IBM (NYSE:IBM) and Hewlett-Packard (NYSE:HPQ). On Aug. 24 Xerox announced the acquisition of health care analytics company RSA Medical and on Aug, 28 also announced the launch of a new brand strategy around the theme “Work Can Work Better.” Despite Xerox’s efforts to expand in health care technology and improve its brand positioning, industry analysts are skeptical of its growth prospects.


    Xerox has been lagging its industry peers in market share and revenue growth over the past few quarters. In its most recent earnings report it posted revenue of $4.6 billion with earnings of $246 million and earnings per share of $0.22. Total revenue missed analysts’ revenue consensus for the second quarter by $50 million and fell 7% from the comparable quarter. Earnings were in line with analysts’ average estimate; however, both earnings and earnings per share fell from the comparable quarter. Earnings were down 19%, and earnings per share were down 12%.

      


  • Officer of CA Inc. Sells 70,402 Company Shares

    Richard Beckert (Insider Trades), executive vice president and CFO of CA Inc. (CA), sold 70,402 shares of the company on Aug. 21. The average price per share was $28.49, for a total transaction of $2,005,753. CA Technologies is a worldwide software company with a market cap of 11.68 billion, and a P/S ratio of 2.89.


    Beckert made one transaction with CA Inc. since September 2003. CA insider sells decreased from five transactions totaling 145,744 shares of the company in 2012, to three transactions totaling 75,997 shares in 2014. There was an increase in the number and volume of insider sells during 2013. Twenty-five transactions totaling 805,270 shares were made in that year alone, more than doubling the amount for the years 2012 and 2014 combined. The increase in number of CA insider sells corresponds to an increase in month. 1440474006341.png 1440474146504.png For more information about insider transactions with CA Inc., click here.

      


  • Kelly Lawrence W & Associates' Top Buys of Q2 2015

    At the end of the second quarter of 2015, the hedge fund Kelly Lawrence W & Associates reported a total value of its portfolio of $502 million, with an increase of 8.34% since the previous quarter. During the quarter, it bought 18 new stocks and increased 40 of its stakes. The following are the most heavily weighted buys during the quarter.


    It bought shares of Colfax Corp (CFX) with an impact of 2.35% on its portfolio. The company designs, manufactures, installs and maintains gas- and fluid-handling products for use in a wide range of markets, including power generation, oil, gas and petrochemical, mining, marine (including defense) and general industrial and other.

      


  • Five-Year Lows: Joy Global Inc, United States Steel Corp, Valley National Bancorp, QEP Resources Inc.

    According to GuruFocus list of 5-year lows, these Guru stocks have reached their 5-year lows: Joy Global Inc, United States Steel Corp, Valley National Bancorp, QEP Resources Inc.


    Joy Global Inc (NYSE:JOY) Reached $24.07

      


  • Toy Maker Hasbro Continues to Achieve Price Appreciation

    Hasbro Inc. (NASDAQ:HAS) is a $9.81 billion market cap company with a broad portfolio of toys, games and entertainment offerings, including brands such as Transformers, Playskool, Monopoly and My Little Pony.


    Previous Recommendations 

      


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