Thomas Gayner has been the head of Markel Gayner Asset Management (Markel’s investment division) since 1990, and he has been also chief investment officer of Markel since 2004. His assets under management are about $2 billion.
Markel Corporation markets and underwrites specialty insurance products and programs. Tom S. Gayner is its chief investment officer and president of Markel Gayner Asset Management, the investment subsidiary of Markel Corp. Markel operates in excess and surplus lines, specialty admitted, and London markets. Markel Service was formed to be a separate, nationwide service organization to take care of both the direct and reinsured business of American Fidelity & Casualty. Now, with $1.98 billion in gross written premiums and $105 million yearly in net income, it's one of the biggest companies in the property & casualty insurance industry.
As the CIO of Markel Corp., Tom Gayner is certainly a value investor. He thinks stock is part of a business and the business is worth what the present value of the future cash flows are. "We operate with a margin of dafety in the investment portfolio," he has said. Also, he believes that he can earn the best returns by concentrating his focus and portfolio in promising areas where he has the best understanding and knowledge. Gayner follows the value investing principles of Warren Buffett and Benjamin Graham. Gayner stated in an interview with Morningstar that the businesses he seeks should have demonstrated record of profitability and good returns on total capital, high measures of talent and integrity in management, favorable reinvestment dynamics over time, and a purchase price that is fair or better.
Markel's equity portfolio returned 11.1% annually between 2000 and 2009.
Stocks That Tom Gayner Keeps Buying
No. 1: Walmart Stores (WMT, Financial), Weightings: 2.9775% - 1,055,701 Shares
Walmart Stores Inc. is the world's largest retailer. Walmart Stores has a market cap of $196.98 billion; its shares were traded at around $57.15 with a P/E ratio of 13.26 and P/S ratio of 0.47. The dividend yield of Walmart Stores stocks is 2.55%. Walmart Stores had an annual average earnings growth of 11.1% over the past 10 years. GuruFocus rated Walmart Stores the business predictability rank of 5-star.
Walmart Stores Inc. announced that Ed Chan, chief executive for China, and Clara Wong, senior vice-president for human resources, had resigned for personal reasons. Scott Price, president and chief executive of Walmart Asia, will also head Walmart China until a new chief executive is named.
H&R Block Inc. will offer tax-preparation services in about 300 Walmart Stores Inc. locations, beginning in December. "This new partnership with the world's largest retailer allows us to serve more customers at times and locations that fit their busy lifestyles," said H&R Block president and chief executive Bill Cobb. "It's yet another example of our commitment to gaining and retaining customers like never before." H&R Block will offer its products and services at kiosks in Walmart, offices nearby or via H&R Block
Domestically Walmart is selectively trimming 24-hour service at stores, closing them from midnight to 6 a.m. The change occurs as Walmart U.S. is seeking to reverse nine straight quarters of same-store sales declines. The company said earlier this month at its annual analyst meeting that its focus on basic apparel merchandise is helping to drive traffic back to its stores. It has already announced that it will be matching the lowest prices found starting November 1 and running through Christmas. The company will be issuing gift cards to price match any item that a customer finds during the season, versus the company's recent policy which matches prices only on competitor advertisements and only during the time which the ad is run. Also, they confirmed that it is now selling choice-grade beef at all of its 3,800 U.S. locations after ramping up selections for the past three months.
Tom Gayner owns 1,055,701 shares of WMT, valued as $56 million as of Jun. 30, 2011, which accounts for 2.9775% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 4.89%, again in the June 30, 2011 quarter by 1.99%. He has been slowly and steadily increasing his position for over five years straight.
No. 2: United Parcel Service Inc. (UPS, Financial), Weightings: 2.7849% - 719,462 Shares
United Parcel Service Inc. is the world's largest express carrier, the world's largest package delivery company and a global provider of specialized transportation and logistics services. United Parcel Service, Inc. has a market cap of $70.12 billion; its shares were traded at around $71.49 with a P/E ratio of 17.57 and P/S ratio of 1.42. The dividend yield of United Parcel Service, Inc. stocks is 2.91%. United Parcel Service, Inc. had an annual average earnings growth of 9.2% over the past 10 years. GuruFocus rated United Parcel Service Inc. the business predictability rank of 3-star.
UPS posted a profit of $1.04 billion, or $1.06 a share, from $991 million, or 99 cents a share, a year earlier. The previous year's results included a gain on the sale of real estate, without which the profit would have been 93 cents a share. Revenue increased 8% to $13.17 billion. While U.S. package revenue rose 6.5%, the unit's operating profit was down 0.5%. In the international package business, revenue jumped 14% but operating profit declined 2.4%. Average volume per day was up 4.5%.
United Parcel Service Inc. announced that Laura Lane has been appointed to lead company's public affairs office here and will oversee the company's government relations efforts around the world. Lane will succeed Arnie Wellman, who has guided company's worldwide public affairs operations since 1992. Wellman is retiring after a combined 38 years of service in various UPS positions and tenure in Washington that saw him become broadly recognized as one of the most effective public affairs managers in corporate America. The transition will be completed Feb. 15, 2012. Lane most recently worked as the managing director and head of international government affairs for Citigroup.
United Parcel Service Inc. and the United States Postal Service are working together to provide small businesses with a new, cost-effective direct mail program. By identifying geographic areas by city, neighborhood or a specified distance from their businesses, the United States Postal Service's Every Door Direct Mail-Retail service allows small businesses to advertise to every delivery address in their target markets without the need for a mailing list. The EDDM-R program allows small business customers to work with their local The United Parcel Service Inc. center to print and distribute high-quality direct marketing pieces to every address in a designated neighborhood.
United Parcel Service Inc.'s third-quarter earnings rose 5.1% in results the shipper said were driven by its supply chain/freight segment. International growth has kept overall volume rising lately as U.S. volume has stagnated. However, in the latest period, the international package segment had lower operating profit because as Chairman and Chief Executive Scott Davis said the earnings growth was solid given "a deceleration in exports from Asia and a challenging global economic environment." It was also hurt by product mix, higher fuel prices and currency fluctuations.
In addition, UPS has been increasingly wary of how business in the U.S. will hold up as the economic outlook grows cloudier. UPS has also offset climbing fuel costs with some increased shipping rates.
UPS now forecast what it called a "solid" holiday shipping season, saying volume during the hectic week before Christmas will be up 6.2% from last year and announcing plans to boost seasonal hiring 10% to 55,000 temporary employees.
Tom Gayner owns 719,462 shares of UPS, valued as $52 million as of June 30, 2011, which accounts for 2.7849% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 1.97%, again in the June 30, 2011 quarter by 0.03%. He has had a consistent position since 2007.
No. 3: Automatic Data Processing Inc. (ADP, Financial), Weightings: 1.3111% - 468,900 Shares
Automatic Data Processing Inc. is one of the largest providers of computerized transaction processing, data communication, and information services in the world. Automatic Data Processing Inc. has a market cap of $26.28 billion; its shares were traded at around $52.6 with a P/E ratio of 20.55 and P/S ratio of 2.66. The dividend yield of Automatic Data Processing Inc. stocks is 2.74%. Automatic Data Processing Inc. had an annual average earnings growth of 3.7% over the past 10 years. GuruFocus rated Automatic Data Processing Inc.the business predictability rank of 3-star.
Automatic Data Processing Inc.'s board raised the payroll and human-resources company's quarterly dividend 9.7%, the 37th year in a row it increased the payout.
For the quarter ended Sept. 30, ADP reported a profit of $302.7 million, or 61 cents a share, up from $278.5 million, or 56 cents a share, a year earlier. Total revenues increased 13.1% year over year to $2.52 billion, and were well above the Zacks Consensus Estimate of $2.43 billion. Organic growth was 10.0% in the quarter. Employer Services revenue increased 9.4% year over year (7.0% organically) to $1.75 billion. The number of employees on clients' payrolls in the United States grew 2.7% in the quarter on a same-store-sales basis. Analysts surveyed by Thomson Reuters expected a profit of 61 cents a share on $2.44 billion in revenue. Gross margin narrowed to 40.3% from 41.2%. The number of employees on ADP's clients' payrolls in the U.S. increased 2.7% for the quarter, as measured on a same-store-sales basis.
Fiscal first-quarter profit rose 8.7% as the company recorded stronger-than-expected revenue driven by rising new-business sales and recent acquisitions. For the latest period, the company said new-business sales for employer services and PEO services were up 8% from a year earlier.
Automatic Data Processing Inc. announced that they have successfully deployed an integrated human capital management system for Maricopa County in Arizona, the fourth largest county in the nation. The company announced that its solution is now helping to automate payroll and key HR services for the county's approximately 13,000 employees. ADP provided Maricopa County with an integrated enterprise HCM solution featuring payroll processing, time and attendance, benefits administration and other HR services. By centralizing and automating many of its HR functions with ADP, Maricopa County expects to achieve significant cost savings and enhance the overall quality of services provided to county employees. The payroll-processing and human-resources-outsourcing company has steadily attracted new business for its employer-services and professional employer organization services segments, helping to lift results in recent quarters.
Tom Gayner owns 468,900 shares of ADP, valued as $25 million as of Jun. 30, 2011, which accounts for 1.3111% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 4%, again in the June 30, 2011 quarter by 0.26%. He has doubled his position since 2009 but has recently lowered his buy amounts.
No. 4: Anheuserbusch Inbev Sa/nv (BUD, Financial), Weightings: 1.0363% - 336,601 Shares
Anheuser-Busch Companies is the holding company parent of Anheuser-BuschIncorporated and to a number of subsidiaries that conduct various other business operations. Anheuserbusch Inbev Sa/nv has a market cap of $91.12 billion; its shares were traded at around $56.75 with a P/E ratio of 16.69 and P/S ratio of 2.51. The dividend yield of Anheuserbusch Inbev Sa/nv stocks is 1.71%.
Anheuser-Busch InBev has dropped the ad agency that has handled its Bud Light beer brand for the last 30 years, Adweek reports. Two years ago, the brewer pulled its flagship Budweiser from the same shop, which is a unit of Omnicom Group. "We've had a long, prosperous relationship," DDB North American president Mark O'Brien told the trade magazine. "We're very disappointed to see [Bud Light] go, but they decided to go in a new direction." DDB, however, will still handle some work for A-B InBev, mostly smaller and overseas assignments, Adweek noted.
Anheuser-Busch InBev said that it will pour more than $1 billion in new investment into its U.S. operations by 2014. The capital will be used to fund the modernization of its breweries, "upgrade systems to reduce greenhouse gas emissions, and install equipment for new products and innovations, among other items," the company said. "Our beer brands are the favorites of millions of U.S. adults, and supporting their growth requires an ongoing commitment to quality, innovation and technologically advanced operations," noted Luiz Edmond, president of Anheuser-Busch InBev North America, in announcing the plans.
Tom Gayner owns 336,601 shares of BUD, valued as $20 million as of Jun. 30, 2011, which accounts for 1.0363% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 7.44%, again in the June 30, 2011 quarter by 17.78%. He sold out 1.554 million shares in early 2008 and just rebought in early 2010 and is on the rise.
No. 5: Teva Pharmaceutical Industries Ltd. (TEVA, Financial), Weightings: 0.6452% - 252,100 Shares
TEVA Pharmaceuticals USA, the business is to develop, manufacture, and market generic pharmaceuticals. Teva Pharmaceutical Industries Ltd. has a market cap of $37.68 billion; its shares were traded at around $42.34 with a P/E ratio of 9.03 and P/S ratio of 2.34. The dividend yield of Teva Pharmaceutical Industries Ltd. stocks is 1.85%. Teva Pharmaceutical Industries Ltd. had an annual average earnings growth of 20.7% over the past 10 years. GuruFocus rated Teva Pharmaceutical Industries Ltd. the business predictability rank of 4-star.
In a statement Thursday, Teva Pharmaceutical Industries Ltd. of Jerusalem and Procter & Gamble Co. of Cincinnati said they’d formed PGT Healthcare of Geneva. PGT “will operate in essentially all markets outside North America” but will develop new products for the North American market as well, they said. The companies are combining their lineups of OTC medications. That provides a base of $1.3 billion in annual sales, which the companies hope to triple to $4 billion toward the end of the decade.
Federal Trade Commission will require Teva Pharmaceutical Industries Limited to sell the rights and assets related to a generic cancer pain drug and a generic muscle relaxant, as a condition for its acquisition Cephalon Inc. The commission said it was concerned about the effect of Teva's purchase of Cephalon on competition for drugs based on Modafinil, which is the main pharmaceutical ingredient of Provigil as well as the Teva generic drug and a new drug that Cephalon has in the pipeline.
President Barack Obama will sign an executive order directing the U.S. Food and Drug Administration to take additional steps to address a shortage of chemotherapy and other critical-care drugs, according to an administration official.
Tom Gayner owns 252,100 shares of TEVA, valued as $12 million as of Jun. 30, 2011, which accounts for 0.6452% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 17.27%, again in the June 30, 2011 quarter by 76.79%. He started to buy this stock in mid-2010 and spiked his holdings just last quarter with just over 100,000 share increase or 43% increase.
No. 6: Microsoft Corp. (MSFT, Financial), Weightings: 0.5161% - 373,990 Shares
Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft Corp. has a market cap of $226.05 billion; its shares were traded at around $26.98 with a P/E ratio of 9.99 and P/S ratio of 3.23. The dividend yield of Microsoft Corp. stocks is 2.37%. Microsoft Corp. had an annual average earnings growth of 14.4% over the past 10 years. GuruFocus rated Microsoft Corp. the business predictability rank of 4.5-star.
Microsoft Corp. on reported a fiscal first-quarter profit of $5.74 billion, or 68 cents a share, compared with a profit of $5.4 billion, or 62 cents a share, for the year-earlier period. Revenue was $17.37 billion, up from $16.2 billion.
Microsoft Corporation announced that it has signed a patent agreement with Taiwan's Compal Electronics Inc., which will provide a broad coverage under Microsoft's patent portfolio for Compal's tablets, mobile phones, e-readers and other consumer devices running the Android or Chrome Platform. The contents of the agreement have not been disclosed. However, the parties indicate that Microsoft will receive royalties from Compal under the agreement.
Stocks are going bonkers after European leaders agreed to boost the region’s bailout fund and struck a deal with banks and the U.S. GDP met analyst expectations. Upcoming catalysts include Windows 8 and entrance into the tablet market; Windows Phone 7 / Mango rollout and adoption with hardware partner Nokia; strides against current market leaders in cloud computing; making money in the online business, including integration of Skype and improving the search / display business; and continued evolution of Kinect and next generation Xbox console.
Tom Gayner owns 373,990 shares of MSFT, valued as $10 million as of Jun. 30, 2011, which accounts for 0.5161% of his equity portfolio. Tom Gayner added his positions in the Mar. 31, 2011 quarter by 40.94%, again in the Jun. 30, 2011 quarter by 27.21%. He has low positions since 2007 at around and below 50,000 shares, but he only drastically increased his position from mid-2010.
Stocks That Tom Gayner Keeps Selling
No. 1: Diageo Plc Ads (DEO, Financial), Weightings: 5.4375% - 1,251,381 Shares
Diageo is an multinational branded food and drinks company. Diageo Plc Ads has a market cap of $53.05 billion; its shares were traded at around $84.75 with and P/S ratio of 3.36. The dividend yield of Diageo Plc Ads stocks is 3.06%.
Diageo Plc announced earnings results for the quarter ended September 30, 2011. For the quarter, the company delivered organic net sales growth of 9% against the comparable period with volume up 5%. Net assets were 6,572 million at September 30, 2011, compared with 5,985 million at June 30, 2011 primarily as a result of net profit for the period. Sales growth was a modest 8% in the most recent period, but Diageo makes up for that somewhat with a tasty dividend. It offers a payout with an annualized yield of 3.2%. Consider British premium spirits giant Diageo Plc. Diageo obtains a third of its revenues from emerging markets, and that percentage grows every year.
Diageo Plc announced that it has renewed its agreements with Southern Wine & Spirits of America, Inc. The new agreements continue Southern's role as Diageo's exclusive distributor for its spirits and wine brands in California, Florida, Hawaii, Kentucky, Indiana and Alaska. The agreements also include continued distribution of wine in Oregon and Washington.
Facebook and Diageo Plc (DEO, DGE.LN) have entered into an advertising partnership, The Financial Times reports on its website Sunday. According to the report, the "multimillion-dollar partnership" is the latest move by Facebook to work more closely with marketers. Diageo has found that using Facebook for promotions and advertising has led to increased purchases in the U.S., the FT said.
Analysts at Santander also have concerns. They say Diageo's weaknesses include drawing two-thirds of its business from developed markets so that its exposure to emerging markets isn't as great as its rivals. Plus, the company lacks a bourbon brand, and its exposure to Jose Cuervo tequila is only through a distribution deal, the Santander analysts wrote in a research report last month. Diageo has said it would consider buying the tequila brand if its owners opt to sell. At the same time, the Santander analysts acknowledge Diageo's strong position.
Tom Gayner owns 1,251,381 shares of DEO, valued as $102 million as of June 30, 2011, which accounts for 5.4375% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.16%, again in the June 30, 2011 quarter by 0.01%. He has had a constant position in this stock over the years to even before 2006 with 1.282 million shares.
No. 2: Walt Disney (DIS, Financial), Weightings: 3.0766% - 1,484,794 Shares
Walt Disney Company owns 100% of Disney Enterprises Inc. Walt Disney has a market cap of $67.21 billion; its shares were traded at around $36.21 with a P/E ratio of 15.09 and P/S ratio of 1.77. The dividend yield of Walt Disney stocks is 1.1%. Walt Disney had an annual average earnings growth of 12.5% over the past 10 years. GuruFocus rated Walt Disney the business predictability rank of 3.5-star.
Walt Disney Co.'s Disney Interactive and Google Inc.'s YouTube said they are teaming up to create new family-oriented Web pages on both Disney.com and YouTube, as Disney prepares to relaunch its namesake website.
Providence Equity Partners LLC, News Corp., Walt Disney Co. and NBCUniversal Media LLC have withdrawn the sale of Hulu LLC, after months of discussions. The owners of Hulu had decided against the sale, they said in a statement. "Our focus now rests solely on ensuring that our efforts as owners contribute in a meaningful way to the exciting future that lies ahead for Hulu," they said in a statement.
Nearly 130 employees who work for a third-party food-services operation at Walt Disney Co. offices in Burbank and Glendale are slated to be laid off in early November.
Walt Disney Co. announced that Bob Iger will step down as CEO in March 2015. In addition to his role as CEO, Iger will take over as chairman in March 2012. He will then step down as CEO at the end of March 2015, and he will leave his chairman position June 30, 2016. Iger began his career at ABC in 1974, and he joined Disney when it purchased ABC in 1985. After former CEO Michael Eisner stepped down in 2005, Iger was promoted to replace him. At that time, Iger signed a contract that was due to expire in January 2013, but Disney's board said it extended Iger to make the transition "seamless," and maintain continuity of the company's business strategy.
Rivals Netflix Inc. and Amazon.com Inc. unveiled separate deals with Walt Disney Co. to license movies and TV shows that will broaden offerings to their subscribers. Netflix has continued to unveil new content deals, with more expected in the future. The online video and DVD-rental company and Disney agreed to an extension of their licensing accord to expand the lineup of Disney and ABC series and TV movies available to Netflix's U.S. subscribers. New season episodes of some shows will become available to Netflix subscribers 30 days after the last episode of each season airs. Amazon, which launched its Netflix-like video service in February, reached an agreement with Disney to allow streaming of a broad selection of library content from ABC Studios, Disney Channel, ABC Family and Marvel.
Disney has worked for three years to launch the channel in Russia. The Wall Street Journal reported that Disney said it has reached a deal as a joint venture between Disney and UTH Russia, a media holding company. UTH’s Seven TV is to become the Disney channel. Disney will own 49%, and UTH will have 51%.
Tom Gayner owns 1,484,794 shares of DIS, valued as $58 million as of June 30, 2011, which accounts for 3.0766% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.07%, again in the June 30, 2011 quarter by 0.07%. He has had a constant position since late 2008 with 1.483 million shares.
No. 3: General Electric Co. (GE, Financial), Weightings: 2.4631% - 2,460,622 Shares
General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Co. has a market cap of $182.86 billion; its shares were traded at around $17.25 with a P/E ratio of 13.17 and P/S ratio of 1.22. The dividend yield of General Electric Co. stocks is 3.48%. General Electric Co. had an annual average earnings growth of 13.1% over the past 10 years.
General Electric Co.'s GE Energy Financial Services unit bought a 58% stake in Lightfoot Capital Partners L.P. and formed a partnership to expand into petroleum product terminals. Lightfoot is the general partner and majority owner of Arc Terminals L.P., an independent operator of petroleum and refined product terminals in eight states with total storage capacity of 3.6 million barrels. Instead, GE said orders growth decelerated to a 16% pace from a year ago, versus a 24% year-over-year jump seen in the second quarter. Organic growth fell to 6% from 17%.
“We have seen a slowdown in orders, but it has been very manageable,” said Chief Financial Officer Keith Sherin, on a conference call with analysts. But wavering demand has already hit prices. After forecasting margins to improve in the second half of this year, they actually declined further in the third quarter and hit a low for the year. Shares of General Electric Co. declined nearly 2% premarket after the conglomerate's third-quarter results failed to beat the Wall Street consensus for the first time since the fourth quarter, 2008.
The conglomerate also noted that customer orders for big-ticket industrial equipment and services climbed 16% in the quarter, compared to the year-ago period. Its order backlog — a harbinger of future revenue and earnings — stood at a record $191 billion at the end of the quarter, the company said, up from $189 billion at the end of the second quarter.
GE reported overall third-quarter revenue of $35.37 billion, flat compared to the year-ago period. The figure was affected by the lack of NBC Universal, which GE sold its majority stake in earlier this year.
Adding to FSLR's challenges is the announcement that General Electric would build the largest solar module manufacturing facility in the U.S. in Aurora, Colo. The facility would produce Cadmium-telluride modules with an efficiency of 14%[/url], which is substantially higher than FSLR's current 11.7% efficiency.[url=http://files.shareholder.com/downloads/FSLR/1464369899x0x489148/929dfc96-e413-4147-8871-90876cc61251/Q2_2011_Earnings_Call_Presentation_Final.pdf]
GE seems to be having a good year in its financing units and turning around its energy infrastructure units. They are making larger marketing plays in India, China and Australia.
Tom Gayner owns 2,460,622 shares of GE, valued as $46 million as of Jun. 30, 2011, which accounts for 2.4631% of his equity portfolio. Tom Gayner reduced his positions in the Mar. 31, 2011 quarter by 0.27%, again in the Jun. 30, 2011 quarter by 0.43%. He had a constant position of 3.6 million shares for few years until late 2010 when he sold down to 2.478 and has been constant since.
No. 4: Novo Nordisk A/s Ads (NVO, Financial), Weightings: 1.5256% - 229,450 Shares
Novo Nordisk is a world leader in insulin and diabetes care and also manufactures and markets a variety of other pharmaceutical products. Novo Nordisk A/s Ads has a market cap of $66.53 billion; its shares were traded at around $110.89 with a P/E ratio of 20.84 and P/S ratio of 5.93. The dividend yield of Novo Nordisk A/s Ads stocks is 1.22%. Novo Nordisk A/s Ads had an annual average earnings growth of 25.5% over the past five years.
Novo Nordisk A/S has announced the availability of Victoza, or liraglutide injection, the once-daily human Glucagon-Like Peptide-1, or GLP-1, analogue in China. Victoza was approved for type 2 diabetes by the Chinese State Food and Drug Administration (SFDA). Victoza was developed for the treatment of type 2 diabetes in adults, and is indicated in China as an add-on to metformin or sulphonylurea (SU) in people with insufficient glycaemic control despite maximal tolerated dose of monotherapy with metformin or SU. Novo Nordisk more than doubled third-quarter sales of Victoza. Victoza sales rose to DKK1.55 billion from DKK700 million, beating consensus by 10%. Novo Nordisk cautioned it still expects intense competition in key segments and a negative impact from healthcare reforms up ahead, but nevertheless raised full-year guidance to the higher end of the previously stated ranges. Novo Nordisk said it now expects full-year sales in local currencies to grow by 10% to 11% on the year, up from 9% to 11% previously. Earnings before interest and tax are now expected to grow by 17% to 19%, up from 15% to 19%.
Novo Nordisk Inc. has agreed to pay $1.725 million to settle allegations that it played a part in the submission of fraudulent claims to the Medicaid program, the Justice Department said Friday. The department alleged that Novo Nordisk sales representatives made payments to Rite Aid pharmacists in exchange for recommending Novo Nordisk products to customers. In the process, the pharmacists allowed Novo Nordisk staff to access confidential patient information, which was used to switch patients from competitor diabetes drugs to its products, according to the department.
Tom Gayner owns 229,450 shares of NVO, valued as $29 million as of June 30, 2011, which accounts for 1.5256% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.43%, again in the June 30, 2011 quarter by 0.09%. He has had a constant position since early 2010. He has had a constant position since early 2010.
No. 5: Fidelity National Financial Inc. (FNF, Financial), Weightings: 1.4268% - 1,707,950 Shares
Fidelity National Title Group Inc. is a provider of title insurance, specialty insurance and claims management services. Fidelity National Financial Inc. has a market cap of $3.49 billion; its shares were traded at around $15.62 with a P/E ratio of 11.4 and P/S ratio of 0.61. The dividend yield of Fidelity National Financial Inc. stocks is 3.07%. Check out the complete list of the stocks that Tom Gayner keeps on buying.
Fidelity National Financial Inc.'s third-quarter earnings fell 11% as the title insurer was hurt by falling revenue and its personal-lines business was hit by storm-related losses. The provider of title insurance and mortgage services, along with the broader industry, has been struggling amid the housing-market downturn.
Fidelity National reported a profit of $74.3 million, or 33 cents a share, down from $83.2 million, or 36 cents a share, a year earlier. In the latest period, storm-related losses, particularly resulting from Hurricane Irene, reduced earnings by 4 cents. Revenue decreased 9.7% to $1.24 billion. Analysts polled by Thomson Reuters most recently forecast earnings of 38 cents on revenue of $1.34 billion. In its title business, the volume of orders opened declined 16%, while orders closed were down 7.2%. Companywide, fee per file increased 15%. The stock is up 14% this year.
Tom Gayner owns 1,707,950 shares of FNF, valued as $27 million as of Jun. 30, 2011, which accounts for 1.4268% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.1%, again in the June 30, 2011 quarter by 2.38%. He has had a constant position since late 2007.
Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Tom Gayner.
Markel Corporation markets and underwrites specialty insurance products and programs. Tom S. Gayner is its chief investment officer and president of Markel Gayner Asset Management, the investment subsidiary of Markel Corp. Markel operates in excess and surplus lines, specialty admitted, and London markets. Markel Service was formed to be a separate, nationwide service organization to take care of both the direct and reinsured business of American Fidelity & Casualty. Now, with $1.98 billion in gross written premiums and $105 million yearly in net income, it's one of the biggest companies in the property & casualty insurance industry.
As the CIO of Markel Corp., Tom Gayner is certainly a value investor. He thinks stock is part of a business and the business is worth what the present value of the future cash flows are. "We operate with a margin of dafety in the investment portfolio," he has said. Also, he believes that he can earn the best returns by concentrating his focus and portfolio in promising areas where he has the best understanding and knowledge. Gayner follows the value investing principles of Warren Buffett and Benjamin Graham. Gayner stated in an interview with Morningstar that the businesses he seeks should have demonstrated record of profitability and good returns on total capital, high measures of talent and integrity in management, favorable reinvestment dynamics over time, and a purchase price that is fair or better.
Markel's equity portfolio returned 11.1% annually between 2000 and 2009.
Stocks That Tom Gayner Keeps Buying
No. 1: Walmart Stores (WMT, Financial), Weightings: 2.9775% - 1,055,701 Shares
Walmart Stores Inc. is the world's largest retailer. Walmart Stores has a market cap of $196.98 billion; its shares were traded at around $57.15 with a P/E ratio of 13.26 and P/S ratio of 0.47. The dividend yield of Walmart Stores stocks is 2.55%. Walmart Stores had an annual average earnings growth of 11.1% over the past 10 years. GuruFocus rated Walmart Stores the business predictability rank of 5-star.
Walmart Stores Inc. announced that Ed Chan, chief executive for China, and Clara Wong, senior vice-president for human resources, had resigned for personal reasons. Scott Price, president and chief executive of Walmart Asia, will also head Walmart China until a new chief executive is named.
H&R Block Inc. will offer tax-preparation services in about 300 Walmart Stores Inc. locations, beginning in December. "This new partnership with the world's largest retailer allows us to serve more customers at times and locations that fit their busy lifestyles," said H&R Block president and chief executive Bill Cobb. "It's yet another example of our commitment to gaining and retaining customers like never before." H&R Block will offer its products and services at kiosks in Walmart, offices nearby or via H&R Block
Domestically Walmart is selectively trimming 24-hour service at stores, closing them from midnight to 6 a.m. The change occurs as Walmart U.S. is seeking to reverse nine straight quarters of same-store sales declines. The company said earlier this month at its annual analyst meeting that its focus on basic apparel merchandise is helping to drive traffic back to its stores. It has already announced that it will be matching the lowest prices found starting November 1 and running through Christmas. The company will be issuing gift cards to price match any item that a customer finds during the season, versus the company's recent policy which matches prices only on competitor advertisements and only during the time which the ad is run. Also, they confirmed that it is now selling choice-grade beef at all of its 3,800 U.S. locations after ramping up selections for the past three months.
Tom Gayner owns 1,055,701 shares of WMT, valued as $56 million as of Jun. 30, 2011, which accounts for 2.9775% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 4.89%, again in the June 30, 2011 quarter by 1.99%. He has been slowly and steadily increasing his position for over five years straight.
No. 2: United Parcel Service Inc. (UPS, Financial), Weightings: 2.7849% - 719,462 Shares
United Parcel Service Inc. is the world's largest express carrier, the world's largest package delivery company and a global provider of specialized transportation and logistics services. United Parcel Service, Inc. has a market cap of $70.12 billion; its shares were traded at around $71.49 with a P/E ratio of 17.57 and P/S ratio of 1.42. The dividend yield of United Parcel Service, Inc. stocks is 2.91%. United Parcel Service, Inc. had an annual average earnings growth of 9.2% over the past 10 years. GuruFocus rated United Parcel Service Inc. the business predictability rank of 3-star.
UPS posted a profit of $1.04 billion, or $1.06 a share, from $991 million, or 99 cents a share, a year earlier. The previous year's results included a gain on the sale of real estate, without which the profit would have been 93 cents a share. Revenue increased 8% to $13.17 billion. While U.S. package revenue rose 6.5%, the unit's operating profit was down 0.5%. In the international package business, revenue jumped 14% but operating profit declined 2.4%. Average volume per day was up 4.5%.
United Parcel Service Inc. announced that Laura Lane has been appointed to lead company's public affairs office here and will oversee the company's government relations efforts around the world. Lane will succeed Arnie Wellman, who has guided company's worldwide public affairs operations since 1992. Wellman is retiring after a combined 38 years of service in various UPS positions and tenure in Washington that saw him become broadly recognized as one of the most effective public affairs managers in corporate America. The transition will be completed Feb. 15, 2012. Lane most recently worked as the managing director and head of international government affairs for Citigroup.
United Parcel Service Inc. and the United States Postal Service are working together to provide small businesses with a new, cost-effective direct mail program. By identifying geographic areas by city, neighborhood or a specified distance from their businesses, the United States Postal Service's Every Door Direct Mail-Retail service allows small businesses to advertise to every delivery address in their target markets without the need for a mailing list. The EDDM-R program allows small business customers to work with their local The United Parcel Service Inc. center to print and distribute high-quality direct marketing pieces to every address in a designated neighborhood.
United Parcel Service Inc.'s third-quarter earnings rose 5.1% in results the shipper said were driven by its supply chain/freight segment. International growth has kept overall volume rising lately as U.S. volume has stagnated. However, in the latest period, the international package segment had lower operating profit because as Chairman and Chief Executive Scott Davis said the earnings growth was solid given "a deceleration in exports from Asia and a challenging global economic environment." It was also hurt by product mix, higher fuel prices and currency fluctuations.
In addition, UPS has been increasingly wary of how business in the U.S. will hold up as the economic outlook grows cloudier. UPS has also offset climbing fuel costs with some increased shipping rates.
UPS now forecast what it called a "solid" holiday shipping season, saying volume during the hectic week before Christmas will be up 6.2% from last year and announcing plans to boost seasonal hiring 10% to 55,000 temporary employees.
Tom Gayner owns 719,462 shares of UPS, valued as $52 million as of June 30, 2011, which accounts for 2.7849% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 1.97%, again in the June 30, 2011 quarter by 0.03%. He has had a consistent position since 2007.
No. 3: Automatic Data Processing Inc. (ADP, Financial), Weightings: 1.3111% - 468,900 Shares
Automatic Data Processing Inc. is one of the largest providers of computerized transaction processing, data communication, and information services in the world. Automatic Data Processing Inc. has a market cap of $26.28 billion; its shares were traded at around $52.6 with a P/E ratio of 20.55 and P/S ratio of 2.66. The dividend yield of Automatic Data Processing Inc. stocks is 2.74%. Automatic Data Processing Inc. had an annual average earnings growth of 3.7% over the past 10 years. GuruFocus rated Automatic Data Processing Inc.the business predictability rank of 3-star.
Automatic Data Processing Inc.'s board raised the payroll and human-resources company's quarterly dividend 9.7%, the 37th year in a row it increased the payout.
For the quarter ended Sept. 30, ADP reported a profit of $302.7 million, or 61 cents a share, up from $278.5 million, or 56 cents a share, a year earlier. Total revenues increased 13.1% year over year to $2.52 billion, and were well above the Zacks Consensus Estimate of $2.43 billion. Organic growth was 10.0% in the quarter. Employer Services revenue increased 9.4% year over year (7.0% organically) to $1.75 billion. The number of employees on clients' payrolls in the United States grew 2.7% in the quarter on a same-store-sales basis. Analysts surveyed by Thomson Reuters expected a profit of 61 cents a share on $2.44 billion in revenue. Gross margin narrowed to 40.3% from 41.2%. The number of employees on ADP's clients' payrolls in the U.S. increased 2.7% for the quarter, as measured on a same-store-sales basis.
Fiscal first-quarter profit rose 8.7% as the company recorded stronger-than-expected revenue driven by rising new-business sales and recent acquisitions. For the latest period, the company said new-business sales for employer services and PEO services were up 8% from a year earlier.
Automatic Data Processing Inc. announced that they have successfully deployed an integrated human capital management system for Maricopa County in Arizona, the fourth largest county in the nation. The company announced that its solution is now helping to automate payroll and key HR services for the county's approximately 13,000 employees. ADP provided Maricopa County with an integrated enterprise HCM solution featuring payroll processing, time and attendance, benefits administration and other HR services. By centralizing and automating many of its HR functions with ADP, Maricopa County expects to achieve significant cost savings and enhance the overall quality of services provided to county employees. The payroll-processing and human-resources-outsourcing company has steadily attracted new business for its employer-services and professional employer organization services segments, helping to lift results in recent quarters.
Tom Gayner owns 468,900 shares of ADP, valued as $25 million as of Jun. 30, 2011, which accounts for 1.3111% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 4%, again in the June 30, 2011 quarter by 0.26%. He has doubled his position since 2009 but has recently lowered his buy amounts.
No. 4: Anheuserbusch Inbev Sa/nv (BUD, Financial), Weightings: 1.0363% - 336,601 Shares
Anheuser-Busch Companies is the holding company parent of Anheuser-BuschIncorporated and to a number of subsidiaries that conduct various other business operations. Anheuserbusch Inbev Sa/nv has a market cap of $91.12 billion; its shares were traded at around $56.75 with a P/E ratio of 16.69 and P/S ratio of 2.51. The dividend yield of Anheuserbusch Inbev Sa/nv stocks is 1.71%.
Anheuser-Busch InBev has dropped the ad agency that has handled its Bud Light beer brand for the last 30 years, Adweek reports. Two years ago, the brewer pulled its flagship Budweiser from the same shop, which is a unit of Omnicom Group. "We've had a long, prosperous relationship," DDB North American president Mark O'Brien told the trade magazine. "We're very disappointed to see [Bud Light] go, but they decided to go in a new direction." DDB, however, will still handle some work for A-B InBev, mostly smaller and overseas assignments, Adweek noted.
Anheuser-Busch InBev said that it will pour more than $1 billion in new investment into its U.S. operations by 2014. The capital will be used to fund the modernization of its breweries, "upgrade systems to reduce greenhouse gas emissions, and install equipment for new products and innovations, among other items," the company said. "Our beer brands are the favorites of millions of U.S. adults, and supporting their growth requires an ongoing commitment to quality, innovation and technologically advanced operations," noted Luiz Edmond, president of Anheuser-Busch InBev North America, in announcing the plans.
Tom Gayner owns 336,601 shares of BUD, valued as $20 million as of Jun. 30, 2011, which accounts for 1.0363% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 7.44%, again in the June 30, 2011 quarter by 17.78%. He sold out 1.554 million shares in early 2008 and just rebought in early 2010 and is on the rise.
No. 5: Teva Pharmaceutical Industries Ltd. (TEVA, Financial), Weightings: 0.6452% - 252,100 Shares
TEVA Pharmaceuticals USA, the business is to develop, manufacture, and market generic pharmaceuticals. Teva Pharmaceutical Industries Ltd. has a market cap of $37.68 billion; its shares were traded at around $42.34 with a P/E ratio of 9.03 and P/S ratio of 2.34. The dividend yield of Teva Pharmaceutical Industries Ltd. stocks is 1.85%. Teva Pharmaceutical Industries Ltd. had an annual average earnings growth of 20.7% over the past 10 years. GuruFocus rated Teva Pharmaceutical Industries Ltd. the business predictability rank of 4-star.
In a statement Thursday, Teva Pharmaceutical Industries Ltd. of Jerusalem and Procter & Gamble Co. of Cincinnati said they’d formed PGT Healthcare of Geneva. PGT “will operate in essentially all markets outside North America” but will develop new products for the North American market as well, they said. The companies are combining their lineups of OTC medications. That provides a base of $1.3 billion in annual sales, which the companies hope to triple to $4 billion toward the end of the decade.
Federal Trade Commission will require Teva Pharmaceutical Industries Limited to sell the rights and assets related to a generic cancer pain drug and a generic muscle relaxant, as a condition for its acquisition Cephalon Inc. The commission said it was concerned about the effect of Teva's purchase of Cephalon on competition for drugs based on Modafinil, which is the main pharmaceutical ingredient of Provigil as well as the Teva generic drug and a new drug that Cephalon has in the pipeline.
President Barack Obama will sign an executive order directing the U.S. Food and Drug Administration to take additional steps to address a shortage of chemotherapy and other critical-care drugs, according to an administration official.
Tom Gayner owns 252,100 shares of TEVA, valued as $12 million as of Jun. 30, 2011, which accounts for 0.6452% of his equity portfolio. Tom Gayner added his positions in the March 31, 2011 quarter by 17.27%, again in the June 30, 2011 quarter by 76.79%. He started to buy this stock in mid-2010 and spiked his holdings just last quarter with just over 100,000 share increase or 43% increase.
No. 6: Microsoft Corp. (MSFT, Financial), Weightings: 0.5161% - 373,990 Shares
Microsoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft Corp. has a market cap of $226.05 billion; its shares were traded at around $26.98 with a P/E ratio of 9.99 and P/S ratio of 3.23. The dividend yield of Microsoft Corp. stocks is 2.37%. Microsoft Corp. had an annual average earnings growth of 14.4% over the past 10 years. GuruFocus rated Microsoft Corp. the business predictability rank of 4.5-star.
Microsoft Corp. on reported a fiscal first-quarter profit of $5.74 billion, or 68 cents a share, compared with a profit of $5.4 billion, or 62 cents a share, for the year-earlier period. Revenue was $17.37 billion, up from $16.2 billion.
Microsoft Corporation announced that it has signed a patent agreement with Taiwan's Compal Electronics Inc., which will provide a broad coverage under Microsoft's patent portfolio for Compal's tablets, mobile phones, e-readers and other consumer devices running the Android or Chrome Platform. The contents of the agreement have not been disclosed. However, the parties indicate that Microsoft will receive royalties from Compal under the agreement.
Stocks are going bonkers after European leaders agreed to boost the region’s bailout fund and struck a deal with banks and the U.S. GDP met analyst expectations. Upcoming catalysts include Windows 8 and entrance into the tablet market; Windows Phone 7 / Mango rollout and adoption with hardware partner Nokia; strides against current market leaders in cloud computing; making money in the online business, including integration of Skype and improving the search / display business; and continued evolution of Kinect and next generation Xbox console.
Tom Gayner owns 373,990 shares of MSFT, valued as $10 million as of Jun. 30, 2011, which accounts for 0.5161% of his equity portfolio. Tom Gayner added his positions in the Mar. 31, 2011 quarter by 40.94%, again in the Jun. 30, 2011 quarter by 27.21%. He has low positions since 2007 at around and below 50,000 shares, but he only drastically increased his position from mid-2010.
Stocks That Tom Gayner Keeps Selling
No. 1: Diageo Plc Ads (DEO, Financial), Weightings: 5.4375% - 1,251,381 Shares
Diageo is an multinational branded food and drinks company. Diageo Plc Ads has a market cap of $53.05 billion; its shares were traded at around $84.75 with and P/S ratio of 3.36. The dividend yield of Diageo Plc Ads stocks is 3.06%.
Diageo Plc announced earnings results for the quarter ended September 30, 2011. For the quarter, the company delivered organic net sales growth of 9% against the comparable period with volume up 5%. Net assets were 6,572 million at September 30, 2011, compared with 5,985 million at June 30, 2011 primarily as a result of net profit for the period. Sales growth was a modest 8% in the most recent period, but Diageo makes up for that somewhat with a tasty dividend. It offers a payout with an annualized yield of 3.2%. Consider British premium spirits giant Diageo Plc. Diageo obtains a third of its revenues from emerging markets, and that percentage grows every year.
Diageo Plc announced that it has renewed its agreements with Southern Wine & Spirits of America, Inc. The new agreements continue Southern's role as Diageo's exclusive distributor for its spirits and wine brands in California, Florida, Hawaii, Kentucky, Indiana and Alaska. The agreements also include continued distribution of wine in Oregon and Washington.
Facebook and Diageo Plc (DEO, DGE.LN) have entered into an advertising partnership, The Financial Times reports on its website Sunday. According to the report, the "multimillion-dollar partnership" is the latest move by Facebook to work more closely with marketers. Diageo has found that using Facebook for promotions and advertising has led to increased purchases in the U.S., the FT said.
Analysts at Santander also have concerns. They say Diageo's weaknesses include drawing two-thirds of its business from developed markets so that its exposure to emerging markets isn't as great as its rivals. Plus, the company lacks a bourbon brand, and its exposure to Jose Cuervo tequila is only through a distribution deal, the Santander analysts wrote in a research report last month. Diageo has said it would consider buying the tequila brand if its owners opt to sell. At the same time, the Santander analysts acknowledge Diageo's strong position.
Tom Gayner owns 1,251,381 shares of DEO, valued as $102 million as of June 30, 2011, which accounts for 5.4375% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.16%, again in the June 30, 2011 quarter by 0.01%. He has had a constant position in this stock over the years to even before 2006 with 1.282 million shares.
No. 2: Walt Disney (DIS, Financial), Weightings: 3.0766% - 1,484,794 Shares
Walt Disney Company owns 100% of Disney Enterprises Inc. Walt Disney has a market cap of $67.21 billion; its shares were traded at around $36.21 with a P/E ratio of 15.09 and P/S ratio of 1.77. The dividend yield of Walt Disney stocks is 1.1%. Walt Disney had an annual average earnings growth of 12.5% over the past 10 years. GuruFocus rated Walt Disney the business predictability rank of 3.5-star.
Walt Disney Co.'s Disney Interactive and Google Inc.'s YouTube said they are teaming up to create new family-oriented Web pages on both Disney.com and YouTube, as Disney prepares to relaunch its namesake website.
Providence Equity Partners LLC, News Corp., Walt Disney Co. and NBCUniversal Media LLC have withdrawn the sale of Hulu LLC, after months of discussions. The owners of Hulu had decided against the sale, they said in a statement. "Our focus now rests solely on ensuring that our efforts as owners contribute in a meaningful way to the exciting future that lies ahead for Hulu," they said in a statement.
Nearly 130 employees who work for a third-party food-services operation at Walt Disney Co. offices in Burbank and Glendale are slated to be laid off in early November.
Walt Disney Co. announced that Bob Iger will step down as CEO in March 2015. In addition to his role as CEO, Iger will take over as chairman in March 2012. He will then step down as CEO at the end of March 2015, and he will leave his chairman position June 30, 2016. Iger began his career at ABC in 1974, and he joined Disney when it purchased ABC in 1985. After former CEO Michael Eisner stepped down in 2005, Iger was promoted to replace him. At that time, Iger signed a contract that was due to expire in January 2013, but Disney's board said it extended Iger to make the transition "seamless," and maintain continuity of the company's business strategy.
Rivals Netflix Inc. and Amazon.com Inc. unveiled separate deals with Walt Disney Co. to license movies and TV shows that will broaden offerings to their subscribers. Netflix has continued to unveil new content deals, with more expected in the future. The online video and DVD-rental company and Disney agreed to an extension of their licensing accord to expand the lineup of Disney and ABC series and TV movies available to Netflix's U.S. subscribers. New season episodes of some shows will become available to Netflix subscribers 30 days after the last episode of each season airs. Amazon, which launched its Netflix-like video service in February, reached an agreement with Disney to allow streaming of a broad selection of library content from ABC Studios, Disney Channel, ABC Family and Marvel.
Disney has worked for three years to launch the channel in Russia. The Wall Street Journal reported that Disney said it has reached a deal as a joint venture between Disney and UTH Russia, a media holding company. UTH’s Seven TV is to become the Disney channel. Disney will own 49%, and UTH will have 51%.
Tom Gayner owns 1,484,794 shares of DIS, valued as $58 million as of June 30, 2011, which accounts for 3.0766% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.07%, again in the June 30, 2011 quarter by 0.07%. He has had a constant position since late 2008 with 1.483 million shares.
No. 3: General Electric Co. (GE, Financial), Weightings: 2.4631% - 2,460,622 Shares
General Electric is one of the largest and most diversified industrial corporations in the world. General Electric Co. has a market cap of $182.86 billion; its shares were traded at around $17.25 with a P/E ratio of 13.17 and P/S ratio of 1.22. The dividend yield of General Electric Co. stocks is 3.48%. General Electric Co. had an annual average earnings growth of 13.1% over the past 10 years.
General Electric Co.'s GE Energy Financial Services unit bought a 58% stake in Lightfoot Capital Partners L.P. and formed a partnership to expand into petroleum product terminals. Lightfoot is the general partner and majority owner of Arc Terminals L.P., an independent operator of petroleum and refined product terminals in eight states with total storage capacity of 3.6 million barrels. Instead, GE said orders growth decelerated to a 16% pace from a year ago, versus a 24% year-over-year jump seen in the second quarter. Organic growth fell to 6% from 17%.
“We have seen a slowdown in orders, but it has been very manageable,” said Chief Financial Officer Keith Sherin, on a conference call with analysts. But wavering demand has already hit prices. After forecasting margins to improve in the second half of this year, they actually declined further in the third quarter and hit a low for the year. Shares of General Electric Co. declined nearly 2% premarket after the conglomerate's third-quarter results failed to beat the Wall Street consensus for the first time since the fourth quarter, 2008.
The conglomerate also noted that customer orders for big-ticket industrial equipment and services climbed 16% in the quarter, compared to the year-ago period. Its order backlog — a harbinger of future revenue and earnings — stood at a record $191 billion at the end of the quarter, the company said, up from $189 billion at the end of the second quarter.
GE reported overall third-quarter revenue of $35.37 billion, flat compared to the year-ago period. The figure was affected by the lack of NBC Universal, which GE sold its majority stake in earlier this year.
Adding to FSLR's challenges is the announcement that General Electric would build the largest solar module manufacturing facility in the U.S. in Aurora, Colo. The facility would produce Cadmium-telluride modules with an efficiency of 14%[/url], which is substantially higher than FSLR's current 11.7% efficiency.[url=http://files.shareholder.com/downloads/FSLR/1464369899x0x489148/929dfc96-e413-4147-8871-90876cc61251/Q2_2011_Earnings_Call_Presentation_Final.pdf]
GE seems to be having a good year in its financing units and turning around its energy infrastructure units. They are making larger marketing plays in India, China and Australia.
Tom Gayner owns 2,460,622 shares of GE, valued as $46 million as of Jun. 30, 2011, which accounts for 2.4631% of his equity portfolio. Tom Gayner reduced his positions in the Mar. 31, 2011 quarter by 0.27%, again in the Jun. 30, 2011 quarter by 0.43%. He had a constant position of 3.6 million shares for few years until late 2010 when he sold down to 2.478 and has been constant since.
No. 4: Novo Nordisk A/s Ads (NVO, Financial), Weightings: 1.5256% - 229,450 Shares
Novo Nordisk is a world leader in insulin and diabetes care and also manufactures and markets a variety of other pharmaceutical products. Novo Nordisk A/s Ads has a market cap of $66.53 billion; its shares were traded at around $110.89 with a P/E ratio of 20.84 and P/S ratio of 5.93. The dividend yield of Novo Nordisk A/s Ads stocks is 1.22%. Novo Nordisk A/s Ads had an annual average earnings growth of 25.5% over the past five years.
Novo Nordisk A/S has announced the availability of Victoza, or liraglutide injection, the once-daily human Glucagon-Like Peptide-1, or GLP-1, analogue in China. Victoza was approved for type 2 diabetes by the Chinese State Food and Drug Administration (SFDA). Victoza was developed for the treatment of type 2 diabetes in adults, and is indicated in China as an add-on to metformin or sulphonylurea (SU) in people with insufficient glycaemic control despite maximal tolerated dose of monotherapy with metformin or SU. Novo Nordisk more than doubled third-quarter sales of Victoza. Victoza sales rose to DKK1.55 billion from DKK700 million, beating consensus by 10%. Novo Nordisk cautioned it still expects intense competition in key segments and a negative impact from healthcare reforms up ahead, but nevertheless raised full-year guidance to the higher end of the previously stated ranges. Novo Nordisk said it now expects full-year sales in local currencies to grow by 10% to 11% on the year, up from 9% to 11% previously. Earnings before interest and tax are now expected to grow by 17% to 19%, up from 15% to 19%.
Novo Nordisk Inc. has agreed to pay $1.725 million to settle allegations that it played a part in the submission of fraudulent claims to the Medicaid program, the Justice Department said Friday. The department alleged that Novo Nordisk sales representatives made payments to Rite Aid pharmacists in exchange for recommending Novo Nordisk products to customers. In the process, the pharmacists allowed Novo Nordisk staff to access confidential patient information, which was used to switch patients from competitor diabetes drugs to its products, according to the department.
Tom Gayner owns 229,450 shares of NVO, valued as $29 million as of June 30, 2011, which accounts for 1.5256% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.43%, again in the June 30, 2011 quarter by 0.09%. He has had a constant position since early 2010. He has had a constant position since early 2010.
No. 5: Fidelity National Financial Inc. (FNF, Financial), Weightings: 1.4268% - 1,707,950 Shares
Fidelity National Title Group Inc. is a provider of title insurance, specialty insurance and claims management services. Fidelity National Financial Inc. has a market cap of $3.49 billion; its shares were traded at around $15.62 with a P/E ratio of 11.4 and P/S ratio of 0.61. The dividend yield of Fidelity National Financial Inc. stocks is 3.07%. Check out the complete list of the stocks that Tom Gayner keeps on buying.
Fidelity National Financial Inc.'s third-quarter earnings fell 11% as the title insurer was hurt by falling revenue and its personal-lines business was hit by storm-related losses. The provider of title insurance and mortgage services, along with the broader industry, has been struggling amid the housing-market downturn.
Fidelity National reported a profit of $74.3 million, or 33 cents a share, down from $83.2 million, or 36 cents a share, a year earlier. In the latest period, storm-related losses, particularly resulting from Hurricane Irene, reduced earnings by 4 cents. Revenue decreased 9.7% to $1.24 billion. Analysts polled by Thomson Reuters most recently forecast earnings of 38 cents on revenue of $1.34 billion. In its title business, the volume of orders opened declined 16%, while orders closed were down 7.2%. Companywide, fee per file increased 15%. The stock is up 14% this year.
Tom Gayner owns 1,707,950 shares of FNF, valued as $27 million as of Jun. 30, 2011, which accounts for 1.4268% of his equity portfolio. Tom Gayner reduced his positions in the March 31, 2011 quarter by 0.1%, again in the June 30, 2011 quarter by 2.38%. He has had a constant position since late 2007.
Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Tom Gayner.
