Weekly Guru Bargains Highlights: Countrywide Financial Corp., Leap Wireless International Inc., and Lennar Corp.
Ben Bernanke suggested that the fed rate currently at 4.5% may be cut again by 0.5% in the Dec. 11 meeting. In the mean time Treasury Secretary Henry Paulson urged major banks to put temporary freeze on ARMs. In the past week, although stocks capped the highest gains since the first quarter, November has been one of the most volatile months.
Countrywide Financial Corp. (CFC): Down 57% Since Richard Pzena Bought In the Third Quarter
Angelo R. Mozilo, CEO of Countrywide Financial Corporation (CFC)—the largest U.S. mortgage lending and finance-related holding company—publicly stated his support for a Fannie Mae expansion to lift up the housing slump. The financial sector made big gains on Friday, including a 16.3% rise in Countrywide. CFC shares have dropped over 70% from $40 since January of 2007.
Guru Richard Pzena increased his CFC holdings to 22,339,949 shares by buying shares between the range of $18.01 and $36.73 a share. George Soros bought 1,784,957 shares. Other gurus also bought CFC stock: Richard Snow, Charles Brandes, Tom Gayner, Brian Rogers, and Wallace Weitz. Gurus Arnold Schneider, NWQ Managers, Ruane Cunniff, and Ronald Muhlenkamp made no changes to their CFC holdings. Guru David Dreman, Kenneth Fisher, Robert Olstein, and John Rogers sold out all their holdings.
As of the second quarter, the company insiders all made huge sells of CFC stocks including the Chairman and CEO, Angelo R. Mozilo. Since August, CEO Mozilo has sold a total of 1,117,506 shares priced between $18.36 and $28.74. Following his lead, President & COO David Sambol sold a total of 29,750 shares between $35.26 and $37.02. Next in line, Directors Oscar P. Robertson and Michael E. Dougherty sold 12,000 and 11,395 shares, respectively. Lastly, EMD of Banking and Insurance, Carlos Manuel Garcia, sold a total of 5,000 shares averaged at $37.61.
Countrywide Financial Corp. has a market cap of $6.16 billion; its shares were traded at around $10.82 with P/S ratio of 0.88. The dividend yield of Countrywide Financial Corp. stocks is 5.5%.
Leap Wireless International Inc. (LEAP): Down 56% Since Jean-Marie Eveillard Bought In the Third Quarter
Leap Wireless International, Inc. (LEAP), a digital wireless communications carrier under the Cricket and Jumptm Mobile brands, has been issued a class action lawsuit. The complaint accuses LEAP of producing false and misleading business information and financial reports, which led to a surge in stock price to high $98 in the third quarter. The company’s stock is currently at its lowest of the year.
Jean-Marie Eveillard added to his holdings in Mobile Telecom company Leap Wireless International Inc. by 59.14% during the quarter ended 09/30/2007. His purchase prices were between $60.74 and $95.9, with an estimated average price of $79.5. Since then the prices of Leap Wireless International Inc. shares have declined by -56% from the estimated average. Jean-Marie Eveillard owned 301,730 shares of as of 09/30/2007.
Guru Jean-Marie Eveillard increased his ownership of LEAP holdings by 59% to 301,730 shares 59.14%.
Leap Wireless International Inc. has a market cap of $2.35 billion; its shares were traded at around $34.71 with P/S ratio of 1.71.
Lennar Corp. (LEN): Down 48% Since Charles Brandes Bought In the Third Quarter
Last Friday, the homebuilder Lennar Corporation (LEN) announced their sell of 11,000 properties, worth $1.3 billion, for $525 million to the investment bank Morgan Stanley. Currently Lennar holds 20% of their portfolio, and Morgan holds 80%. The company did not hold out their inventory as planned in the troubled, competitive, and oversupplied housing market.
Guru Charles Brandes bought 777,171 shares of stock from the homebuilder Lennar Corp. between $22.65 and $36.86. Other Gurus who own Lennar stock: HOTCHKIS & WILEY owns 21,014,460; Bill Miller owns 2,300,000; Ruane Cunniff owns 470,595; and George Soros owns 9,023.
Lennar Corp. has a market cap of $2.68 billion; its shares were traded at around $15.84 with P/S ratio of 0.21. The dividend yield of Lennar Corp. stocks is 4%.