GuruFocus Premium Membership

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

Free Trial

Free 7-day Trial
All Articles and Columns »

Leucadia Buys More Buys Mueller Industries Inc., Jefferies Group Inc., International FCStone Inc.

November 14, 2011 | About:
Evan Vanderveer

gurufocus

341 followers
Investment firm Leucadia just bought more of what they already own: Mueller Industries Inc., Jefferies Group Inc., Intl FCStone Inc. Leucadia is run by its chairman Ian Cumming and president Joe Steinberg. The firm has great long term track record of buying distressed companies, then wait, until they can sell them at much higher prices.

During the third quarter the firm bought a lot of Jefferies, as the company stock prices collapsed in the wake of the bankruptcy of MF Capital. We have also reported that they have been buying more shares as recent as two weeks ago.

As of 09/30/2011, Leucadia National owns 5 stocks with a total value of $1.1 billion. These are the details of the buys and sells.

This is the portfolio chart of Ian Cumming. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Ian Cumming's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Ian+Cumming

This is the sector weightings of his portfolio:

Financials 64.7%
Industrials 35.3%


These are the top 5 holdings of Ian Cumming

  1. Jefferies Group Inc. (JEF) - 56,506,024 shares, 61.5% of the total portfolio. Shares added by 3.67%
  2. Mueller Industries Inc. (MLI) - 10,422,859 shares, 35.3% of the total portfolio. Shares added by 450.69%
  3. INTL FCStone Inc. (INTL) - 1,618,044 shares, 2.9% of the total portfolio. Shares added by 16.83%
  4. Cowen Group Inc. (COWN) - 993,758 shares, 0.2% of the total portfolio.
  5. Global Power Equipment Group Inc (GLPW) - 37,300 shares, 0.1% of the total portfolio.


Added: Mueller Industries Inc. (MLI)

Ian Cumming added to his holdings in Mueller Industries Inc. by 450.69%. His purchase prices were between $36.51 and $47.13, with an estimated average price of $42.38. The impact to his portfolio due to this purchase was 28.86%. His holdings were 10,422,859 shares as of 09/30/2011. Mueller Industries, Inc. is a manufacturer of copper tube and fittings; brass and copper alloy rod, bar and shapes; aluminum and brass forgings; aluminum and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products. Mueller Industries Inc. has a market cap of $1.56 billion; its shares were traded at around $41.26 with a P/E ratio of 17.78 and P/S ratio of 0.76. The dividend yield of Mueller Industries Inc. stocks is 0.97%. Mueller Industries Inc. had an annual average earnings growth of 0.2% over the past 10 years.

Added: Jefferies Group Inc. (JEF)

Ian Cumming added to his holdings in Jefferies Group Inc. by 3.67%. His purchase prices were between $12.37 and $21.24, with an estimated average price of $16.85. The impact to his portfolio due to this purchase was 2.18%. His holdings were 56,506,024 shares as of 09/30/2011. Jefferies Group, Inc. is a holding company whose affiliated companies, including its principal operating subsidiary, Jefferies & Company, Inc. Jefferies Group Inc. has a market cap of $2.24 billion; its shares were traded at around $11.23 with and P/S ratio of 0.8. The dividend yield of Jefferies Group Inc. stocks is 2.67%.

Added: Intl Fcstone Inc. (INTL)

Ian Cumming added to his holdings in Intl Fcstone Inc. by 16.83%. His purchase prices were between $20.735 and $25.31, with an estimated average price of $23.07. The impact to his portfolio due to this purchase was 0.42%. His holdings were 1,618,044 shares as of 09/30/2011. INTL FCStone Incorporation, formerly known as INTL Asset Holding, provides execution and advisory services in commodities, currencies and international securities. Intl FCStone Inc. has a market cap of $450.42 million; its shares were traded at around $24.72 with a P/E ratio of 14.89 and P/S ratio of 0.01. Intl Fcstone Inc. had an annual average earnings growth of 25.5% over the past 5 years.

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.9/5 (14 votes)

Comments

adamcz
Adamcz - 2 years ago
I don't understand MLI. Can anybody explain why this is a screaming bargain? 17x earnings for a company that is barely growing, ROE is nothing special, share count grows every year... Is there a hidden asset on the balance sheet?
luishernadez
Luishernadez premium member - 2 years ago
I have been trying to figure this same thing out, but haven´t done enough research. I guess the thing is that it is a very cyclical business that is sensitive to an economic comeback, especially housing and construction. Earnings in 07-08 where almost double of what they are now. They also have a lot of cash and much smaller debt.

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