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What the Gurus Did Over the Past Week
Posted by: Monica Wolfe (IP Logged)
Date: October 7, 2013 05:30PM
The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. We saw notable real time activity from Steve Mandel, Richard Perry and Daniel Loeb.
Last week Steve Mandel made his first buy into Pandora Media (P). The guru purchased a total of 10,085,216 shares of the company’s stock at an average price of $27.51 per share. His new buy puts him in charge of 5.72% of the company’s shares outstanding and makes him the largest guru shareholder of Pandora stock.
Pandora is an online radio music player. The company generates personalized stations through their “Music Genome Project,” which traces what the listener listens to and builds playlists off of that information.
Pandora’s historical price, revenue and net income:
Mandel’s buy was reported as the company reported their September 2013 audience metrics which reported:
· Listener hours for Pandora were 1.36 billion, up 18% from last year.
· Share of total U.S. radio listening for Pandora was 7.77%, and increase from 6.53% last year.
· Active listeners were 72.7 million, an increase of 25% from 58.3 million last year.
The analysis on Pandora reports that its price is at a 3-year high, its revenue has been in decline over the past three years and its P/B and P/S ratios are trading at 2-year highs.
Pandora has a market cap of $5.04 billion. Its shares are currently trading at around $26.67 with a P/S ratio of 8.70 and a P/B ratio of 53.70.
Perry made a drastic cut of his holdings in J.C. Penney (JCP) over the past week. The guru worked alongside Bill Ackman, so it isn’t surprising that he’s started unloading his stake in the company.
Perry cut his position -47.37% by selling a total of 9 million shares at an average price of $8.75 per share. Since this sell the price per share has dropped an additional -10%. Perry still holds on to 10,000,000 shares of JCP, representing 4.54% of the company’s shares outstanding.
Perry initially bought in to J.C. Penney in 2013Q2 when he bought 12 million shares. He bought those at an estimated average quarterly price of $16.83 per share. That price has since then dropped -53%.
Perry’s historical holding history:
J.C. Penney is one of the nation’s largest apparel and home furnishing retailers. According to their website they are “undergoing a resurgence to become America’s preferred retail destination for unmatched style, quality and value.”
J.C. Penney’s historical revenue and net income:
J.C. Penney has really been struggling as of late, and is trying several tactics to help rebrand the company. The company recently announced that they would be launching a Disney Shop inside of 565 of their stores nationwide.
J.C. Penney is currently trading at a historical low share price.
The analysis on J.C. Penney reports that the revenue has been in decline for the past 5 years, its P/S and P/B are trading at historical lows and its Price is at a 10-low.
J.C. Penney has a market cap of $1.73 billion. Its shares are currently trading at around $7.84 with a P/S ratio of 0.10 and a P/B ratio of 0.80.
Over the past week Daniel Loeb significantly upped his stake in Sothebys (BID). The guru increased his position 61.78% by purchasing a total of 2,425,000 shares of the company’s stock. Loeb bought these shares at an average price of $50.04 per share, and the price has since then increased about 1%.
Loeb now holds on to 6,350,000 shares of Sothebys, representing 9.29% of the company’s shares outstanding. The guru bought into Sothebys during 2013Q1 and has since then seen average gains of 39%.
Loeb’s holding history of Sothebys:
Sothebys is an auctioneer of authenticated fine art, antiques and decorative art, jewelry and collectibles. The company's operations are organized into three business segments: Auction, Finance and Dealer.
Sothebys’ historical revenue and net income:
The analysis on Sothebys reports that the company’s operating margin is expanding, its revenue has slowed down over the past year, its price is nearing a 5-year high and its P/S ratio is nearing a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Sothebys has a market cap of $3.43 billion. Its shares are currently trading at around $50.23 with a P/E ratio of 33.60, a P/S ratio of 4.50 and a P/B ratio of 3.30. The company had an average earnings growth of 15.9% over the past ten years.
Check out the most current GuruFocus Real Time Picks here.
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Guru Discussed: Daniel Loeb: Current Portfolio, Stock Picks
Steve Mandel: Current Portfolio, Stock Picks
Stocks Discussed: P, JCP, BID,