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Pioneer Investments Keeps Buying HSY, JCI, WAG, PNC, ORCL, UNH and Keeps Selling CVX, NSC, XOM, UTX, CL

William Ding

William Ding

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Pioneer Investments keeps Buying HSY, JCI, WAG, PNC, ORCL, UNH and keeps Selling CVX, NSC, XOM, UTX, CL

Pioneer Investments is an investment company based in Boston, Mass., specializing in mutual funds. In 1928, Philip L. Carret founded the Pioneer Fund (was Fidelity Mutual Trust), now the third oldest mutual fund in the U.S. The Pioneer Fund is often cited as the first mutual fund based on ethical values. It used a "sin screen" to exclude investment in companies that made or sold tobacco and alcohol. In 2000, The Pioneer Group, Inc. was acquired by UniCredit, an Italian banking group. It is now presented in 31 countries all over the world with the head office in Milan.

Among Pioneer Investment funds one can find three types of open mutual investments — Actions Fond, Obligations fond and Mixed Investments fond. This gives the opportunity for the company’s clients to choose the best solution for their personal needs. Moreover, the company suggests creating personal strategy for Pioneer investments so that every client is treated individually.

Stocks That Pioneer Investments Keeps Buying

No. 1: Hershey Foods Corp. (HSY), Weightings: 1.2008% - 4,039,188 Shares

The Hershey Company is a snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products. Hershey Foods Corp. has a market cap of $13.1 billion; its shares were traded at around $58.2 with a P/E ratio of 21.3 and P/S ratio of 2.3. The dividend yield of Hershey Foods Corp. stocks is 2.4%. Hershey Foods Corp. had an annual average earnings growth of 5.1% over the past 10 years.

Hershey Co. announced the election to its Board of Directors of Robert Malcolm, former President, Global Marketing, Sales and Innovation at Diageo plc, effective December 7, 2011. Malcolm serves on the Board of Directors of the American Marketing Association, the Advisory Board of Just Marketing Inc. and Effective Brands.

Hershey said its seasonal volume gains, driven by demand for Halloween candy, were better than originally expected. However, it said that gains from seasonal volume and from new products were needed to offset other volume declines, resulting in an overall volume drop.

Hershey also posted in line results on October 27 with adjusted earnings of 84 cents a share in its third-quarter 2011. Hershey Co.'s third-quarter earnings rose 9.2% as the candy maker sounded positive notes about Halloween sales and new products while keeping costs contained. However, it surpassed the prior-year adjusted earnings of 79 cents per share. The company also expects 2011 adjusted earnings per share to increase around 10% for the full year. Further, Hershey’s expects its 2012 adjusted earnings per share to be within the company’s long-term 6%-8% objective. While the company anticipates higher costs in 2012, it said it was "very focused" on profitability.

Pioneer Investments owns 4,039,188 shares of HSY, valued as $239 million as of Sep. 30, 2011, which accounts for 1.2008% of his equity portfolio. Pioneer Investments added his positions in the Jun. 30, 2011 quarter by 0.81%, again in the Sep. 30, 2011 quarter by 5.03%. It had been steadily increasing for over 6 years and the peak was in early 2010 with almost 5 million shares before a drop to a low of 3.815 million shares in Q1 of 2011.

No. 2: Johnson Controls Inc. (JCI), Weightings: 0.9985% - 7,544,921 Shares

Johnson Controls, Inc. is a global market leader in automotive systems and facility management and control. Johnson Controls Inc. has a market cap of $22.1 billion; its shares were traded at around $32.48 with a P/E ratio of 13.4 and P/S ratio of 0.5. The dividend yield of Johnson Controls Inc. stocks is 2%.

Johnson Controls announced that it has completed a public offering of $1.1 billion worth of fixed-rate senior notes. The company will use the net proceeds of about $1.09 billion for repaying short-term debt and funding general corporate purposes. The notes include $400 million of senior notes that mature in 2016 and bear an interest rate of 2.6%, $450 million of senior notes that mature in 2021 and bear an interest rate of 3.75% and $250 million of senior notes that mature in 2041 and bear an interest rate of 5.25%.

Last month, Johnson Controls announced a hike in quarterly cash dividend from 16 cents to 18 cents per share. The company last raised its dividend by 3 cents to 16 cents per share in the first quarter of its fiscal year ended December 31, 2010. Before that, the company had paid dividend of 13 cents per share since 2008.

The company’s revenues in the quarter rose 21% year over year to $6.97 billion driven by higher sales across all its operations. Gross profit improved 2% to $769 million, despite a 24% rise in cost of goods sold to $6.20 billion. However, gross profit, as a percentage of sales, dropped to 11.0% from 13.1% in the third quarter of 2010.

Pioneer Investments owns 7,544,921 shares of JCI, valued as $199 million as of Sep. 30, 2011, which accounts for 0.9985% of his equity portfolio. Pioneer Investments added his positions in the Jun. 30, 2011 quarter by 0.69%, again in the Sep. 30, 2011 quarter by 0.39%. It has had a constant position in the stock with only slight increase from 2006 when it was only just over 6 million shares to today’s 7.5 million shares.

No. 3: Walgreen Co. (WAG), Weightings: 0.865% - 5,240,532 Shares

Walgreen Co. is a national retail pharmacy chain and considered the leader in innovative drugstore retailing. Walgreen Co. has a market cap of $30.3 billion; its shares were traded at around $34.51 with a P/E ratio of 13.1 and P/S ratio of 0.4. The dividend yield of Walgreen Co. stocks is 2.6%. Walgreen Co. had an annual average earnings growth of 11.7% over the past 10 years. GuruFocus rated Walgreen Co. the business predictability rank of 4.5-star.

Walgreen Co. had November sales of $6.09 billion, an increase of 4.2% from $5.84 billion for the same month in fiscal 2011. Total front-end sales increased 4.0% in November, while comparable store front-end sales increased 2.7%. Customer traffic in comparable stores decreased 0.3% point and basket size increased 3.0%. Calendar year-to-date sales were $66.20 billion, an increase of 6.7% from $62.06 billion in 2010. Total sales for the first quarter of fiscal 2012, which ended Nov. 30, were $18.16 billion, up 4.7% from $17.34 billion in the first quarter of fiscal 2011. Comparable store sales for the first quarter of fiscal 2012 increased 2.5%, while front-end comparable store sales for the quarter also increased 2.5%. Prescriptions filled at comparable stores increased 1.6% and total prescriptions increased 2.4% in the first quarter.

Pioneer Investments owns 5,240,532 shares of WAG, valued as $172 million as of Sep. 30, 2011, which accounts for 0.865% of his equity portfolio. Pioneer Investments added his positions in the Jun. 30, 2011 quarter by 0.23%, again in the Sep. 30, 2011 quarter by 0.8%. IT has owned this stock for many years and since 2006 they have slowly increased their position from almost 4 million shares to today’s just over 5 million shares, except for a spike in mid-2007 with about 6.5 million shares.

No. 4: Pnc Financial Services Group Inc. (PNC), Weightings: 0.8496% - 3,513,015 Shares

The PNC Financial Services Group, Inc. is one of the nation's largest diversified financial services organizations, providing regional banking, corporate banking, real estate finance, asset-based lending, wealth management, asset management and global fund services. Pnc Financial Services Group Inc. has a market cap of $29.44 billion; its shares were traded at around $55.96 with a P/E ratio of 8.8 and P/S ratio of 1.7. The dividend yield of Pnc Financial Services Group Inc. stocks is 2.5%. Pnc Financial Services Group Inc. had an annual average earnings growth of 5.9% over the past 10 years.

PNC previously told investors that regulators could force it to raise as much as $1 billion, or 3% of its shares outstanding, to complete its $3.45 billion purchase of Royal Bank of Canada's (RY, RY.T) U.S. retail bank. The deal, announced in June, now could become immediately additive to PNC's earnings when it closes next year, quicker than PNC initially thought. PNC Chairman and Chief Executive James Rohr had said he thought the bank wouldn't have to sell shares, but it was up to the regulators to decide. The Pittsburgh bank said the Fed had no objections to its plan for RBC. The purchase will also mean that PNC won't be repurchasing shares in 2011, though the Fed's stress tests had allowed the bank the authority to do so before it purchased RBC. As of the end of the third quarter, PNC was authorized to repurchase as much as 25 million shares, nearly 5% of its shares outstanding.

PNC Financial Services Group Inc. announced the appointment of Matthew G. Hloros as Vice President and Senior Banking Adviser for the Wealth Management Group in Troy.

Pioneer Investments owns 3,513,015 shares of PNC, valued as $169 million as of Sep. 30, 2011, which accounts for 0.8496% of his equity portfolio. Pioneer Investments added his positions in the Jun. 30, 2011 quarter by 3.14%, again in the Sep. 30, 2011 quarter by 16.78%. It has had this stock for many years and until 2009, the position was constant, but afterwards the position has more than doubled from around 1.5 million shares to today’s 3.5 million shares.

No. 5: Oracle Corp. (ORCL), Weightings: 0.743% - 5,151,498 Shares

Oracle Corporation is one of the world's suppliers of software for information management. Oracle Corp. has a market cap of $159.11 billion; its shares were traded at around $31.54 with a P/E ratio of 14.4 and P/S ratio of 4.5. The dividend yield of Oracle Corp. stocks is 0.8%. Oracle Corp. had an annual average earnings growth of 19.3% over the past 10 years. GuruFocus rated Oracle Corp. the business predictability rank of 3.5-star.

Oracle trades high at 17.5x and 11.6x past and forward earnings, while offering a dividend yield of only 0.8%. It has healthy gross margins of around 77%.

Oracle Corporation introduced Oracle Financial Services Liquidity Risk Management. With this application, banks now have the ability to achieve the minimum threshold that the Bank of International Settlements (BIS) requires for liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) in order to ensure adequate liquidity during stress over short- and long-term scenarios.

Oracle Corporation announced a new release of company's JD Edwards EnterpriseOne Tools. The new release also delivers enhanced management capabilities, which help lower the cost of ownership, and expanded choice for the underlying technology infrastructure. Improved Usability and Management Functionality for Users and IT Administrators company's JD Edwards EnterpriseOne is an integrated applications suite of comprehensive enterprise resource planning (ERP) software that combines business value, standards-based technology, and deep industry experience into a business solution with a low total cost of ownership.

Oracle Corporation announced the availability of Oracle Solaris Cluster 4.0, the first release providing extended high availability (HA) and disaster recovery (DR) capabilities for Oracle Solaris 11, the first cloud OS. Oracle Solaris Cluster extends Oracle Solaris to provide HA and DR infrastructure required for deploying mission critical workloads in private, public and hybrid clouds as well as enterprise data centers. Oracle Solaris Cluster 4.0: Delivers built-in support for cloud implementations through virtual clusters for secure deployment of mission critical applications. Allows customers to deploy multiple, isolated and secure virtual clusters through Oracle Solaris Zone clustering.

Pioneer Investments owns 5,151,498 shares of ORCL, valued as $148 million as of Sep. 30, 2011, which accounts for 0.743% of his equity portfolio. Pioneer Investments added his positions in the Jun. 30, 2011 quarter by 3.15%, again in the Sep. 30, 2011 quarter by 4.37%. It has had this stock for many years but with varying positions. The stock price has been on a consistent rise but Pioneer’s position has only been rising drastically since late 2010. Before 2010, Pioneer’s position varied drastically.

No. 6: Unitedhealth Group Inc. (UNH), Weightings: 0.5705% - 2,464,655 Shares

UnitedHealth Group Inc. offers health care coverage and related services to help people achieve improved health and well-being through all stages of life. Unitedhealth Group Inc. has a market cap of $52.6 billion; its shares were traded at around $49.34 with a P/E ratio of 10.9 and P/S ratio of 0.6. The dividend yield of Unitedhealth Group Inc. stocks is 1.3%. Unitedhealth Group Inc. had an annual average earnings growth of 19% over the past 10 years. GuruFocus rated Unitedhealth Group Inc. the business predictability rank of 4-star.

Unitedhealth Group, Inc. announced that in conjunction with the meeting, the company will affirm its previous outlook for the year 2011 net earnings of $4.52 to $4.57 per share. UnitedHealth issued 2012 guidance that indicated expectations for growth after a strong 2011 when the whole managed-care sector has benefited from light health-care usage due to economic turmoil. Its forecasts were mostly below Wall Street expectations, but analysts viewed the guidance as an initial target that leaves room for improvement. The company's 2011 earnings guidance has risen roughly 25% since it was first set a year ago.

Management will discuss its 2012 financial outlook, which includes revenues of $107 billion to $108 billion and net earnings of $4.55 to $4.75 per share. The 2012 outlook does not reflect the pending acquisition of XLHealth Corp. or include any estimate of costs pertaining to the Penn Treaty matter. UnitedHealth Group Inc. agreed to buy XLHealth Corp., a sponsor of Medicare Advantage health plans, for an undisclosed amount of cash in an effort to better serve chronically ill and dual eligible members. UnitedHealth expects to close the deal during the first half of 2012 and said it should add to its per-share earnings. The health insurer reported last month its third-quarter earnings slipped 0.5% on higher costs as growth in its Optum business helped boost revenue 6.8%.

Pioneer Investments owns 2,464,655 shares of UNH, valued as $114 million as of Sep. 30, 2011, which accounts for 0.5705% of his equity portfolio. Pioneer Investments added his positions in the Jun. 30, 2011 quarter by 59.11%, again in the Sep. 30, 2011 quarter by 19.89%. It has had this stock since mid-2008 and had a huge spike in position in late 2009 with 3.2 million shares and dropped down just as drastically by early 2010. In 2011, Pioneer is buying a massive 400,000 to 800,000 shares each quarter.

Stocks That Pioneer Investments Keeps Selling

No. 1: Chevron (CVX), Weightings: 1.7524% - 3,774,062 Shares

Chevron is the fifth-largest integrated energy company in the world. Chevron has a market cap of $208.15 billion; its shares were traded at around $104.52 with a P/E ratio of 7.8 and P/S ratio of 1. The dividend yield of Chevron stocks is 3.2%. Chevron had an annual average earnings growth of 14.3% over the past 10 years. GuruFocus rated Chevron the business predictability rank of 2.5-star.

Chevron Corporation appointed Joseph C. Geagea corporate vice president and president, Chevron Gas and Midstream, effective January 1, 2012. Geagea, succeeds John D. Gass who will retire from Chevron after more than 37 years with the company.

Chevron Corp. is moving to boost its capital spending by 26% to $32.7 billion in 2012. Chevron Corp. official said the oil major could spend as much as $40 billion over the next 25 years to build a steam system to increase its oil output from a field in Saudi Arabia.

Pioneer Investments owns 3,774,062 shares of CVX, valued as $349 million as of Sep. 30, 2011, which accounts for 1.7524% of his equity portfolio. Pioneer Investments reduced his positions in the Jun. 30, 2011 quarter by 1.54%, again in the Sep. 30, 2011 quarter by 9.48%. It has owned this stock for many years and ever since late 2006, Pioneer has been selling this stock from the peak of 8.3 million shares.

No. 2: Norfolk Southern Corp. (NSC), Weightings: 1.4126% - 4,612,917 Shares

Norfolk Southern Corp., a Virginia-based holding company, owns two major freight railroads, Norfolk Southern Railway Company and Norfolk Western Railway Company, which operates in numerous states, the District of Columbia and the Province of Ontario. Norfolk Southern Corp. has a market cap of $25.12 billion; its shares were traded at around $74.74 with a P/E ratio of 15.4 and P/S ratio of 2.7. The dividend yield of Norfolk Southern Corp. stocks is 2.3%. Norfolk Southern Corp. had an annual average earnings growth of 11.6% over the past 10 years. GuruFocus rated Norfolk Southern Corp. the business predictability rank of 3.5-star.

Pioneer Investments owns 4,612,917 shares of NSC, valued as $281 million as of Sep. 30, 2011, which accounts for 1.4126% of his equity portfolio. Pioneer Investments reduced his positions in the Jun. 30, 2011 quarter by 0.63%, again in the Sep. 30, 2011 quarter by 2.49%. It has had this stock for many years and very consistently selling it from a high in 2006 of 5.8 million share.

No. 3: Exxon Mobil Corp. (XOM), Weightings: 1.186% - 3,253,709 Shares

Exxon Mobil Corporation's principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crudeoil, natural gas and petroleum products. Exxon Mobil Corp. has a market cap of $388.63 billion; its shares were traded at around $81.08 with a P/E ratio of 9.7 and P/S ratio of 1. The dividend yield of Exxon Mobil Corp. stocks is 2.3%. Exxon Mobil Corp. had an annual average earnings growth of 9.1% over the past 10 years.

LUKOIL Oil Company is reportedly in talks to acquire 37.5% stake in West Qurna-1 oil project in Iraq from Exxon Mobil Corporation, RBC Daily reported on November 30, 2011, citing sources in the oil industry. Out of Exxon Mobil Corporation's 60% stake in project, remaining stake will be acquired by Royal Dutch Shell Plc. Lukoil is expected to close the deal by the end of 2011,

Exxon Mobil Corp. expects that U.S. oil imports have peaked and will consistently drop in the next three decades thanks to rising domestic supplies and a 20% cut in oil demand, eventually eliminating the country's current reliance on crude from the Organization of the Petroleum Exporting Countries.

Pioneer Investments owns 3,253,709 shares of XOM, valued as $236 million as of Sep. 30, 2011, which accounts for 1.186% of his equity portfolio. Pioneer Investments reduced his positions in the Jun. 30, 2011 quarter by 7.56%, again in the Sep. 30, 2011 quarter by 5.22%. It has had this stock for many years and is currently on the downturn drop from a small peak of 3.7 million shares in early 2011, but overall the position has been constant for years.

No. 4: United Technologies Corp. (UTX), Weightings: 1.1747% - 3,326,753 Shares

United Technologies Corporation provides a broad range of high technology products and services to the building systems and aerospace industries. United Technologies Corp. has a market cap of $69.09 billion; its shares were traded at around $76.25 with a P/E ratio of 14.1 and P/S ratio of 1.3. The dividend yield of United Technologies Corp. stocks is 2.5%. United Technologies Corp. had an annual average earnings growth of 10.4% over the past 10 years. GuruFocus rated United Technologies Corp. the business predictability rank of 5-star.

The company has a trailing P/E under 15x, forward 13x P/E, 1.2x PEG and P/S, FCF in excess of $5B this past year, and a nice 2.4% dividend yield. UTX trades at a very low 34% payout ratio as well, so it's very likely to see continued future dividend increases and a nice buy here. As of last quarter UTX had a very strong 80.9% of all shares outstanding held by institutions.

United Technologies Corp. is being awarded a $25,890,769 firm-fixed-price, four-year contract. This contract provides for the remanufacture of 6,601 F100-PW-100/220/220E engine 6th-13th stage stators and 4th-5th shrouds for F-15 and F-16 aircraft. The location of the performance is United Technologies, doing business as Pratt & Whitney Military Aftermarket Services, San Antonio, Texas.

Pioneer Investments owns 3,326,753 shares of UTX, valued as $234 million as of Sep. 30, 2011, which accounts for 1.1747% of his equity portfolio. Pioneer Investments reduced his positions in the Jun. 30, 2011 quarter by 0.63%, again in the Sep. 30, 2011 quarter by 2.37%. It has had this stock for many years and was on an incline from up until late 2008, but since then Pioneer has been very slowly selling.

No. 5: Colgatepalmolive Co. (CL), Weightings: 1.0458% - 2,349,908 Shares

Colgate-Palmolive is a global consumer products company, tightly focused on Oral Care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. Colgatepalmolive Co. has a market cap of $44.14 billion; its shares were traded at around $91.2 with a P/E ratio of 18.3 and P/S ratio of 2.8. The dividend yield of Colgatepalmolive Co. stocks is 2.6%. Colgatepalmolive Co. had an annual average earnings growth of 8.9% over the past 10 years. GuruFocus rated Colgatepalmolive Co. the business predictability rank of 4.5-star.

Colgate-Palmolive trades at a respective 18.2x and 16.4x past and forward earnings while offering a dividend yield of only 2.6%. At the same time, Colgate has gross margins of 59.1%, 850 basis points greater than that of P&G. Going forward, however, I believe that P&G has much greater flexibility in expanding margins than Colgate.

The French anti-trust authority has fined laundry detergent makers a combined EUR361 million after finding they had formed a cartel between 1997 and 2004 to coordinate prices to French retailers.

Pioneer Investments owns 2,349,908 shares of CL, valued as $208 million as of Sep. 30, 2011, which accounts for 1.0458% of his equity portfolio. Pioneer Investments reduced his positions in the Jun. 30, 2011 quarter by 0.48%, again in the Sep. 30, 2011 quarter by 0.84%. It has had this stock for many years and it was being sold relatively fast in 2010 compared to the past but it seems to be stable in 2011.

Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Pioneer Investments.


Rating: 2.6/5 (10 votes)

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