Michael Price

Last Update: 2015-01-07

Number of Stocks: 94
Number of New Stocks: 8

Total Value: $801 Mil
Q/Q Turnover: 10%

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

Michael Price Watch

  • Weekly CEO Buys Highlight: BH, CLMS, OPK, CPRX, BRT

    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:


    Biglari Holdings Inc (BH): Chairman and CEO, 10% Owner Sardar Biglari, Bought 12,249 Shares

      


  • If You Don't Care About a Company's Story, You Don't Care About What Happens to Your Money

    Michael Price (Trades, Portfolio), manager of MFP Investors, likes to buy his stocks from companies that are sailing on rough waters. He does not go for the nice and comfortable stocks that are a guaranteed win – well, as guaranteed as you can get in the market; we all know nothing is promised when it comes to investing – instead, he looks at companies that are selling their shares 30-40% below their estimated intrinsic value.


    "We know it's easy to get swept away in a growth market. But I've been in this business more than 25 years, and I've watched investors figure out a way to justify incredible multiples, only to see valuations collapse back to the underlying worth of the company. We are value investors, and, at these prices, we aren't going to buy names like Microsoft," he said.

      


  • EMC Increases its Focus on Software

    In this article, let's take a look at EMC Corporation (EMC), a $60.82 billion market cap company that is one of the world's largest suppliers of enterprise storage systems.


    Cash is King

      


  • David Winters Chastises Coca-Cola and Buffett Again

    David Winters (Trades, Portfolio)' is a deep value investor and runs Wintergreen Advisors. He was mentored by Michael Price (Trades, Portfolio) and Max Heine at Mutual Series in the late '80s. He believes that management is just as important as buying at a deep discount to intrinstic value.


    David gives his take on Coca-Cola's (KO) management, and essentially calls for them to step aside.

      


  • General Motors Reinstated Dividend Payment

    In this article, let´s consider General Motors Company (GM), a $49.36 billion market cap that is the world's second-largest producer of cars and trucks. It has a trailing P/E ratio that indicates that the stock is relatively overvalued (PE 50.9x vs Industry Median 15.8x).


    The company maintains quality and has one of the best designs. Not only cars, it is also a leader in truck models, too. We think that, in the near future when vehicle demand recovers, the firm will be in an excellent position to grow its earnings. Further, the company focuses on four brands instead of eight, making marketing efforts more concentrated and efficient. Efficiency is reflected also in pricing policies, where it developed a pricing model searching for profitability. This means that is operating a demand-pull model where it produces only to meet demand.

      


  • Michael Price’s Top Sells – 11 Gurus Exit SFD

    Guru Michael Price is averaging a 12-month return of 72.41%. As of the third quarter, his private firm, MFP Investors, has a portfolio of 88 stocks, 5 of them new, a total value at $752 million, with a quarter-over-quarter turnover of 8%. The portfolio is currently weighted with top three sectors: financial services at 33.3%, healthcare at 13% and energy at 12.4%.

    Part of the billionaire exodus that left SFD behind, Price is one of 11 gurus that sold out Smithfield Foods Inc. in the third quarter, after making massive gains on it for years. In September, the global packaged food company was bought by Shuanghui International, a large stakeholder of China’s largest meat processor and largest publicly traded meat company, Henan Shuanghui Investment & Development Co.  


  • Bargain Hunting with Phenom Michael Price for 52-Week Lows

    Guru Michael Price of MFP Investors LLC is a self-made investing phenom averaging a 12-month return of 84.84%. Over 12 months, Price is the fourth highest returning guru, following John Paulson at 296.45%, Michael Dell at 270.13% and Robert Karr at 89.84%.

    From a bargain hunter’s perspective, here are three companies held by Michael Price that are near a 52-week low. These companies were also screened for yield, starting with Teva Pharmaceutical Industries with a yield of 2.80%.  


  • Contrarian Ideas You May Want to Take a Look At

    Here I take a look at two stocks that analysts from different investment firms have been downgrading since the year started. I believe there exists a long case for both of these companies. Their future could be brighter than what the market seems to be expecting and, hence, deserve a second look. Investors such as John Burbank and Michael Price are already long!

    Betting on Renewed Growth  


  • More Billionaire Bargains, 29% Off

    Today the GuruFocus Guru Bargains feature reveals four more stocks that are 29% or more off since a number of billionaires bought them. Consider the possible advantage of following in the footsteps of billionaire gurus who’ve already invested in these stocks. Billionaire buys can indicate a probability that these stocks may be bargain finds.

    Alon USA Energy Inc. (ALJ) - Yield 1.80%  


  • Michael Price’s Top Six Sells

    Renowned value investor and money manager, Michael F. Price is one of the richest people in the world, with a net worth of 1.3 billion as of March 2013, according to Forbes. Price manages his own personal wealth through his private firm, MFP Investors LLC, with around $1.6 billion under management. The updated portfolio of MFP Investors has 92 stocks, 10 of them new, a total value at $747 million, with a quarter-over-quarter turnover of 13%. The portfolio of MFP Investors is currently weighted with top three sectors: financial services at 33.8%, healthcare at 14.4% and consumer cyclical at 13.3%.

    Here are six sells and reductions that made the highest impact on Michael Price’s portfolio in the second quarter of 2013.  


  • Weekly CEO Buys Highlight: AMH, HTH, ARCP, KYN, HK

    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:

      


  • Scoreboard of Gurus – Highest Gain Investors and Six Stocks

    The last six months have been an exciting time for the highest-gaining Gurus Jean-Marie Eveillard, Michael Price, Robert Karr and David Nierenberg. According to the GuruFocus Score Board of Gurus, their performance is as follows:

    Jean-Marie Eveillard, First Eagle Investment Management LLC  


  • Michael Price - A Penchant for Hard-Hit Banks

    Breaking up is hard to do, especially for global banks. Last summer when major bank stocks were below tangible book value, Michael Price of MFP Investors told Bloomberg, “That means the pieces are worth more than the whole.” At the end of May 2013, Moody's upgraded the U.S. banking system from “negative,” where it had sat for five years, to “stable.” However, smaller, distressed banks with ailing loan portfolios are merging for survival and creating opportunities for billionaire investors like Michael Price, whose trading shows a penchant for hard-hit banks.

    In April, Price made a new buy of savings and cooperative banker First Security Group Inc. (FSGI) where insider trading was very active in the same month with anticipated growth from First Security’s recent recapitalization. The company is down 14% over 12 months. Price’s other top holding West Coast Bancorp was recently sold to Columbia Banking System Inc. (COLB), up 40% over 12 months.  


  • Best Performing Guru of Past 6 Months Is... John Paulson?

    Celebrated for his record payday in 2010, John Paulson has more recently been noted for the deterioration of his gold fund, wherein he lost 28% in the first quarter. This followed double-digit losses in his flagship funds, the Advantage Funds, in 2011 and 2012. But GuruFocus’ Score Board of Gurus suggests that the manager of the $18 billion hedge fund Paulson & Co. may be enjoying the beginning of a turnaround. His stock picks of the past six months have had the highest average gain of all the gurus, at 399.4%.

    Paulson is followed distantly by First Eagle Funds, whose picks returned 110%, and Michael Price, whose stocks returned 106.6%.  


  • BSX and ABMD Highlight Increased Insider Buying in the Medical Technology Sector

    In the past week we saw an increase in insider buying coming from the health care industry. Last week GuruFocus reported 31 different insider buys coming from 19 different health care-based companies. These buys spanned across the sector from research and development labs to pharmaceutical companies. The following four companies are all a part of the medical supply sector of the health care industry. They represent significant insider buys coming from one or more directors or corporate executives.

    1. Abiomed (ABMD)  


  • From Rags to Real Estate, Trinity Place Emerges - Michael Price Buys Big

    Once again Guru Michael Price, founder of MFP Investments LLC, has timed his buy to cash in on the completion of a company’s major transformation, according to GuruFocus Real Time Picks.

    Last September Syms Corp. completed its financial restructuring and emerged from Chapter 11 as Trinity Place Holdings Inc. (TPHS). The company formerly called Syms Corporation was a 52-year-old discount chain that eventually dwindled as competitors like TJ Maxx and Marshalls spiked cheap leftover fashions into a super-hot retail category. Divorced from its discount retailer days, Trinity Place has changed not only its name but also its focus - to 16 commercial real estate properties in nine states and a variety of intellectual properties. CEO of Trinity Place Holdings, Lauren Krueger, described Trinity as “…an entirely new company with attractive real estate and intellectual property assets.”  


  • Michael Price - Buys FSGI as Bank Completes Recapitalization

    As of April 11, 2013, Guru Michael Price, founder and manager of MFP Investors LLC, bought 6,080,000 shares of a new holding, First Security Group (FSGI), at an average price of $2.45. The current share price is $2.46, with a 0% change from average. FSGI stock is up 12% over the last 12 months. The P/E ratio is 21.9, the P/B is 2.8 and the P/S is 0.8139.

    Price’s new buy comes just in time to catch the wave of anticipated growth from First Security’s recapitalization completed several days ago. The company’s strategic recapitalization includes new capital, TARP CPP restructuring and the sale of non-performing loans. To improve its risk profile and enhance profitability, First Security Group injected approximately $65 million into its subsidiary FSGBank to improve regulatory capital ratios and to support future growth, according to the company.  


  • Hewlett-Packard Is a Value Trap

    In a recent article on value stock and value traps, I highlighted five characteristics of value traps from a presentation by legendary short-seller Jim Chanos.

    They were:  


  • Will Tyco End Up Like ITT? Reviewing a Break-up

    It’s now been four and a half months since ITT (ITT) broke itself up into three separate companies. I advocated investing in ITT before the break-up, and I wanted to review the position and see if it met my expectations. It’s also worthwhile to review this investing style since Tyco (TYC) is also doing a three way break-up by the end of the year.

    I initiated a position in ITT on July 12, 2011 and completed my buying on August 1, 2011. My average purchase price was $54.30. Some gurus took the same approach that I did. Michael Price had a significant position and has continued to add to ITT post break-up. Joel Greenblatt, Steven Cohen, Jeremy Grantham, Jean-Marie Eveillard, and a few others also purchased before the break-up, probably at better prices than me.  


  • Goodwill and Goodwill Impairment in Value Investing

    Warren Buffett has said that accounting was the language of the business, and in order to understand how a business is operating, investors should understand accounting and its flaws so that they can give proper judgment on the real performance of certain businesses. The number representation is just one thing, but what is really going on behind the numbers, is very crucial.

    In financial statements, there are some items which reflect the real economic activity that are very useful for investors to judge the intrinsic value of a business. There are also other items which are just accounting figures. They just happen to be the booking of certain economic transactions but are not helpful for investors to focus on to determine the true business value. One accounting item which has been talked and discussed quite often is “goodwill,” and actually in one of my posts, I hwrote about Warren Buffett's discussion on the goodwill matter.   


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