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Dodge & Cox Cut Sprint and Compuware
Posted by: Sally Jones (IP Logged)
Date: October 21, 2013 05:15PM
The third quarter portfolio of Dodge & Cox lists 166 stocks, 7 of them new, with a total value of $84.20 billion, and a quarter-over-quarter turnover of 7%. The portfolio’s top three sector weightings are financial services at 20.5%, health care at 17.6% and communication services at 9.3%. The Dodge & Cox average return over 12 months is 28.07%. In 2012, the firm’s annual return was 22.01% compared to the S&P500 Index at 15.99%.
On the selling side of third quarter trading, Dodge & Cox reduced only two companies, cutting large positions in both Sprint Corp. (S) and Compuware Corporation (CPWR).
Sprint Corp. (S): Reduced
Impacts Portfolio: -1.41%
Up 15% over 12 months, Sprint Corp. has a market cap of $24.98 billion; its shares were traded at around $6.36 with a P/B ratio of 5.00.
First incorporated in 1938 as Sprint Nextel Corp, Sprint Corp. is a telecommunications holding company. The company operates as a wireless company in the U.S. and is a global internet carrier.
In July Sprint sold 78% of its shares to Softbank Corp. in Japan, according to Reuters, for $21.6 billion.
The company reported financial results for the second quarter of 2013 with record revenue for its wireless service at $7.2 billion. The company had an operating loss of $874 million for the quarter.
Sprint’s CEO Dan Hesse commented on his company’s second quarter performance in a company press release: “This is a historic time for Sprint. We recently shut down the Nextel platform and completed the Clearwire, SoftBank and U.S. Cellular transactions. In the second quarter, we achieved record levels in Sprint platform postpaid subscribers, service revenue and postpaid ARPU, and increased our 4G LTE footprint.”
Guru Action: As of Sept. 6, 2013, Dodge & Cox reduced its position by 73.53%, selling shares in the average price range of $6.47 per share. Current shares remain at 66,298,791.
Track historical pricing, revenue and net income:
Real-Time Guru Action: Guru Ken Fisher sold out his Sprint holding as of Sept. 30, 2013, selling 14,758 shares at an average price of $6.47, for a 1.7% loss.
Compuware Corporation (CPWR): Reduced
Impacts Portfolio: -0.21%
Up 13% over 12 months, Compuware Corporation has a market cap of $2.32 billion; its shares were traded at around $10.80 with a P/B ratio of 2.30. The dividend yield is 2.30%.
Incorporated in 1973, Compuware Corporation is a software company that optimizes technology performance. The company’s software, services and best practices ensure that customer applications work well and deliver business value.
The company reported financial results for its first quarter of fiscal year 2014, ending June 30, 2013, with revenue up slightly year-over-year at $227.5 million. Compuware reported net income for the quarter at $22.4 million (non-GAAP), up from $19.1 million in the same quarter of the previous fiscal year. Earnings of $0.10 per diluted share were reported for the quarter, compared to earnings of $0.09 per diluted share in the same quarter year-over-year.
Guru Action: As of Sept. 6, 2013, Dodge & Cox reduced its position by 69.61%, selling shares in the average price range of $11.01 per share. Current shares remain at 6,880,511.
Check out this trading history of mostly gaining quarters:
Across a five-year trading history, Dodge & Cox has averaged a gain of 25% on 3,998,917 shares bought at an average price of $8.61 per share. The firm also averaged a gain of 9% on 25,294,397 shares sold at an average price of $9.95 per share.
Track historical pricing, revenue and net income:
Dodge & Cox is one of four gurus holding CPWR. There is one recent insider selling.
In 1930, Van Duyn Dodge and E. Morris Cox formed Dodge & Cox, as a partnership to provide investment counsel. Today the firm has around $190 billion in assets under management.
Check out the complete portfolio of Dodge & Cox.
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Guru Discussed: Dodge & Cox: Current Portfolio, Stock Picks
Stocks Discussed: S, CPWR,
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