GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Weekly Guru Bargains Highlights: LLL, STP, MGM, MFC, NRGP

September 11, 2010 | About:
Saj Karsan

guruyt

4 followers
Last week’s top five guru bargain stocks were L3 Communications Holdings Inc, Suntech Power Holdings Co. Ltd , MGM MIRAGE, Manulife Financial Corp, and Inergy Holdings L.P. Common Units. According to Bargains Candidates updates, these stocks have declined the most since Gurus have bought.

L3 Communications Holdings Inc. (LLL): Down 21% Since Paul Tudor Jones Bought In the Quarter Ended on 2010-06-30

Paul Tudor Jones added to his holdings in Aerospace company L3 Communications Holdings Inc. by 183.1% during the quarter ended 06/30/2010. He owned 20,100 shares of as of 06/30/2010. L-3 Communications Holdings is a merchant supplier of sophisticated secure communication systems and specialized communication products. L3 Communications Holdings Inc. has a market cap of $7.84 billion; its shares were traded at around $68.5 with a P/E ratio of 8.8 and P/S ratio of 0.5. The dividend yield of L3 Communications Holdings Inc. stocks is 2.3%. L3 Communications Holdings Inc. had an annual average earning growth of 19.2% over the past 10 years. GuruFocus rated L3 Communications Holdings Inc. the business predictability rank of 5-star.

LLL recently reported diluted earnings per share (diluted EPS) of $1.95 for the quarter ended June 25, 2010 (2010 second quarter), an increase of 3%, as compared to $1.90 for the quarter ended June 26, 2009 (2009 second quarter). Excluding $0.09 related to a debt retirement charge and incremental interest expense, discussed below, diluted EPS would have increased by 7% to $2.04 as compared to the 2009 second quarter. Net sales increased 1% to $4.0 billion compared to the 2009 second quarter.

Richard Pzena owns 3,041,059 shares as of 06/30/2010, which accounts for 2.22% of the $9.7 billion portfolio of Pzena Investment Management LLC. David Dreman owns 42,636 shares as of 06/30/2010, which accounts for 0.08% of the $3.83 billion portfolio of Dreman Value Management. James Barrow owns 3,084,761 shares as of 06/30/2010, which accounts for 0.55% of the $39.62 billion portfolio of Barrow, Hanley, Mewhinney & Strauss. George Soros owns 4,500 shares as of 06/30/2010, a decrease of 55.88% of from the previous quarter. This position accounts for 0.01% of the $3.31 billion portfolio of Soros Fund Management LLC.

Sell: Director Alan H Washkowitz sold 5,000 shares of LLL stock on 08/24/2010 at the average price of 67.91. Alan H Washkowitz owns at least 104,865 shares after this. The price of the stock has increased by 0.87% since. Other insiders have also decreased their positions in the company.

Suntech Power Holdings Co. Ltd. (STP): Down 22% Since Steven Cohen Bought In the Quarter Ended on 2010-06-30

Steven Cohen added to his holdings in Electrical Components & Equipment company Suntech Power Holdings Co. Ltd. by 76.41% during the quarter ended 06/30/2010. His purchase prices were between $8.67 and $15.35, with an estimated average price of $11.45. Since then the prices of Suntech Power Holdings Co. Ltd. shares have declined by -22% from the estimated average. Steven Cohen owned 162,434 shares of as of 06/30/2010.

STP recently reported its second quarter 2010 results. Total net revenues were $625.1 million in the second quarter of 2010, representing 6.3% growth sequentially and 94.8% year-over-year. "The second quarter was another period of robust multi-market demand," said Dr. Zhengrong Shi, Suntech's Chairman and CEO. "Strong operational execution ensured that we achieved our 1.4GW capacity target, which drove higher than expected shipment and net revenue growth."

Suntech Power Holdings Co., Ltd. is a solar energy company in the world as measured by production output. Suntech Power Holdings Co. Ltd. has a market cap of $1.62 billion; its shares were traded at around $8.97 with a P/E ratio of 15.7 and P/S ratio of 0.9. Suntech Power Holdings Co. Ltd. had an annual average earning growth of 34.9% over the past 5 years.

Steve Mandel owns 700,200 shares as of 06/30/2010, which accounts for 0.06% of the $10.16 billion portfolio of Lone Pine Capital.



MGM MIRAGE (MGM): Down 22% Since John Paulson Bought In the Quarter Ended on 2010-06-30


John Paulson added to his holdings in Gambling company MGM MIRAGE by 9.5% during the quarter ended 06/30/2010. His purchase prices were between $10.05 and $16.64, with an estimated average price of $13.33. Since then the prices of MGM MIRAGE shares have declined by -22% from the estimated average. John Paulson owned 43,800,000 shares of as of 06/30/2010.

MGM Resorts International, formerly known as MGM MIRAGE, is a global hospitality company, operating a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay and The Mirage. Mgm Mirage has a market cap of $4.56 billion; its shares were traded at around $10.34 with and P/S ratio of 0.6.

MGM recently reported its second quarter 2010 results. Operating loss for the second quarter of 2010 was $1.0 billion compared to operating income of $131 million in the second quarter of 2009.

John Paulson owns 43,800,000 shares as of 06/30/2010, which accounts for 1.86% of the $22.7 billion portfolio of Paulson & Co.. Brian Rogers owns 4,699,400 shares as of 06/30/2010, which accounts for 0.29% of the $15.62 billion portfolio of T Rowe Price Equity Income Fund. John Keeley owns 568,080 shares as of 06/30/2010, which accounts for 0.1% of the $5.56 billion portfolio of Keeley Fund Management.

Buy: Director Rose Mckinney-james bought 380 shares of MGM stock on 05/18/2010 at the average price of 12.96. Rose Mckinney-james owns at least 880 shares after this. The price of the stock has decreased by 20.22% since.

Manulife Financial Corp. (MFC): Down 26% Since Charles Brandes Bought In the Quarter Ended on 2010-06-30

Charles Brandes initiated holdings in Life Insurance company Manulife Financial Corp. during the quarter ended 06/30/2010. He owned 51,500 shares of as of 06/30/2010. Manulife Financial Corporation is the holding company of The Manufacturers Life Insurance Company and its subsidiaries. Manulife Financial Corp. has a market cap of $22.79 billion; its shares were traded at around $12.99 with a P/E ratio of 1299 and P/S ratio of 0.6. The dividend yield of Manulife Financial Corp. stocks is 4%. Manulife Financial Corp. had an annual average earning growth of 21.8% over the past 10 years. GuruFocus rated Manulife Financial Corp. the business predictability rank of 4.5-star.

MFC recently reported a net loss attributed to shareholders of $2.4 billion for the second quarter ended June 30, 2010, equating to a fully diluted loss per share of $1.36. For the second quarter of 2009, MFC reported net income of $1.8 billion or $1.09 per share.

Charles Brandes bought 51,500 shares in the quarter that ended on 06/30/2010, which is less than 0.01% of the $15.29 billion portfolio of Brandes Investment. Jean-Marie Eveillard bought 942 shares in the quarter that ended on 06/30/2010, which is less than 0.01% of the $13.96 billion portfolio of First Eagle Investment Management, LLC.

Inergy Holdings L.P. Common Units (NRGP): Down 29% Since Jim Simons Bought In the Quarter Ended on 2010-06-30

Jim Simons initiated holdings in Gas Distribution company Inergy Holdings L.P. Common Units during the quarter ended 06/30/2010. He owned 19,400 shares of as of 06/30/2010. Inergy Holdings, L.P.'s cash-generating assets primarily consist of its partnership interests, including incentive distribution rights, in Inergy, L. Inergy Holdings L.p. Common Units has a market cap of $1.8 billion; its shares were traded at around $29.1 with a P/E ratio of 29.6 and P/S ratio of 1.1. The dividend yield of Inergy Holdings L.p. Common Units stocks is 4.6%. Inergy Holdings L.p. Common Units had an annual average earning growth of 23.2% over the past 5 years.

NRGP recently reported Adjusted EBITDA of $33.5 million for the quarter ended June 30, 2010, an increase of $2.2 million, or approximately 7%, from $31.3 million for the quarter ended June 30, 2009. Net loss attributable to partners, excluding certain items as discussed below, was $(32.4) million for the quarter ended June 30, 2010, or $(0.75) per diluted limited partner unit, and $(13.2) million or $(0.46) per diluted limited partner unit in the same quarter of last year.

Jean-Marie Eveillard bought 106,665 shares in the quarter that ended on 06/30/2010, which is 0.02% of the $13.96 billion portfolio of First Eagle Investment Management, LLC.

Sell: EVP/CFO R Brooks Sherman sold 217,981 shares of NRGP stock on 06/15/2010 at the average price of 22.94. R Brooks Sherman owns at least 1,139,693 shares after this. The price of the stock has increased by 26.85% since. Other insiders have also decreased their positions in the company.

About the author:

guruyt
Saj Karsan founded an investment and research firm that is based on the principles of value investing. He has an MBA from the Richard Ivey School of Business, and an undergraduate engineering degree from McGill University.

Rating: 2.4/5 (5 votes)

Comments

mrhiv
Mrhiv - 3 years ago
MGM is a bad company, loads of debt and bad strategic management, who buy this today will suffer in the future, LVS is better but have a little Margin of Safety, WYNN is good too, but is already overvaluated.

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK