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Joel Greenblatt's Top Buys and Sells

Holly LaFon

Holly LaFon

262 followers
Investor Joel Greenblatt bought 192 new stocks in the second quarter for his 728-stock portfolio. His top new buys are: Tempur-Pedic International (TPX), Wells Fargo (WFC.WS), Wells Fargo (WFC), Lockheed Martin (LMT) and Huntington Ingalls Industries (HII). Greenblatt is also the founder of Gotham Capital, a Columbia professor and author of several investing classics.

Tempur-Pedic International (TPX)

Joel Greenblatt bought 339,909 shares of Tempur-Pedic International at an average price of $51. The largest new buy comprises 0.59% of his portfolio. The stock’s price has since dropped 40%.

Tempur-Pedic International Inc. is a vertically-integrated manufacturer, marketer and distributor of premium mattresses and pillows made from its proprietary Tempur visco-elastic foam. Tempur-Pedic International Inc. has a market cap of $1.95 billion; its shares were traded at around $30.81 with a P/E ratio of 10.1 and P/S ratio of 1.4. Tempur-Pedic International Inc. had an annual average earnings growth of 15.7% over the past 10 years.

Wells Fargo (WFC.WS)

Joel Greenblatt bought 620,000 shares of Wells Fargo warrants in the second quarter. The warrants are now 0.4% of his portfolio.

Wells Fargo (WFC)

Greenblatt bought 126,383 shares of Wells Fargo at an average price of $33 in the second quarter.

Wells Fargo is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo has a market cap of $179.8 billion; its shares were traded at around $34.015 with a P/E ratio of 11.2 and P/S ratio of 2.1. The dividend yield of Wells Fargo stocks is 2.6%. Wells Fargo had an annual average earnings growth of 2.2% over the past 10 years.

Lockheed Martin (LMT)

Joel Greenblatt bought 46,778 shares of Lockheed Martin at an average price of $86 in the second quarter. Previously, he closed out a position of 11,424 shares of the company at an average price of $86 in the first quarter of 2012. The stock is up $6 from his purchase price.

Lockheed Martin Corp. is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced-technology systems, products and services. Lockheed Martin Corp. has a market cap of $29.55 billion; its shares were traded at around $91.52 with a P/E ratio of 10.1 and P/S ratio of 0.6. The dividend yield of Lockheed Martin Corp. stocks is 4.4%. Lockheed Martin Corp. had an annual average earnings growth of 13.5% over the past 10 years. GuruFocus rated Lockheed Martin Corp. the business predictability rank of 4.5-star.

Huntington Ingalls Industries (HII)

Greenblatt bought 93,077 shares of Huntington Ingalls at an average price of $38 in the second quarter of 2012. The stock is up 5% from his purchase price.

Huntington Ingalls Industries (HII) designs, builds and maintains nuclear and non-nuclear ships for the U.S. Huntington Ingalls Industries has a market cap of $2 billion; its shares were traded at around $40.08 with a P/E ratio of 10.4 and P/S ratio of 0.3.

Greenblatt also sold out of a number of positions. These are his largest sells:

HSN Inc. (HSNI)

Greenblatt sold out 63,296 shares of HSN at an average price of $38 in the second quarter of 2012. He bought the shares at an average price of $37 in the first quarter of 2012.

HSN owns and operates, through its subsidiaries, HSN, a retailer and interactive lifestyle network offering a broad assortment of products through television home shopping programming on the HSN television network and HSN. HSN has a market cap of $2.52 billion; its shares were traded at around $44.24 with a P/E ratio of 19.7 and P/S ratio of 0.8. The dividend yield of HSN stocks is 1.1%.

The Washington Post Company (WPO)

Greenblatt sold his entire position of The Washington Post Company at an average price of $362 in the second quarter of 2012. He opened the position at an average price of $399 in the fourth quarter of 2010.

The Washington Post Company's principal business activities consist of newspaper publishing (principally The Washington Post), television broadcasting (through the ownership and operation of six network-affiliated stations), the ownership and operation of cable television systems, magazine publishing (principally Newsweek magazine), and (through its Kaplan subsidiary) the provision of educational and career development services. The Washington Post Company has a market cap of $2.68 billion; its shares were traded at around $349.63 with a P/E ratio of 17.2 and P/S ratio of 0.6. The dividend yield of The Washington Post Company stocks is 2.8%. The Washington Post Company had an annual average earnings growth of 4% over the past 10 years. GuruFocus rated The Washington Post Company the business predictability rank of 2.5-star.

DST Systems (DST)

Greenblatt sold his entire position in DST Systems at an average price of $53 in the second quarter of 2012. He opened the position at an average price of $44 in the fourth uarter of 2010.

DST Systems provides sophisticated information processing and computer software services and products that help clients improve productivity, increase efficiencies, and provide higher levels of customer service. DST Systems has a market cap of $2.3 billion; its shares were traded at around $50.78 with a P/E ratio of 13.6 and P/S ratio of 1. The dividend yield of DST Systems stocks is 1.6%. DST Systems had an annual average earnings growth of 11.2% over the past 10 years. GuruFocus rated DST Systems the business predictability rank of 3.5-star.

Aeropostale Inc. (ARO)

Greenblatt sold his entire position of $19 in the second quarter of 2012. He opened the position at an average price of $25 in the fourth quarter of 2010.

Aeropostale Inc. is a mall-based, specialty retailer of casual apparel and accessories, principally targeting fourteen to seventeen year-old young women and men. Aeropostale has a market cap of $1.06 billion; its shares were traded at around $13.6 with a P/E ratio of 15.4 and P/S ratio of 0.5. Aeropostale had an annual average earnings growth of 31.8% over the past 10 years. GuruFocus rated Aeropostale the business predictability rank of 3.5-star.

FEI Company (FEIC)

Greenblatt sold out his entire position of 38,696 shares of FEI Company at an average price of $47 in the second quarter of 2012. He opened the position at an average price of $31 in the first quarter of 2011.

FEI Company is a leader in the design, manufacture, sale and service of products based on focused charged particle beam technology. FEI Company has a market cap of $2.06 billion; its shares were traded at around $55.59 with a P/E ratio of 20.6 and P/S ratio of 2.5. The dividend yield of FEI Company stocks is 0.6%. FEI Company had an annual average earnings growth of 23.4% over the past 5 years.

See the rest of Joel Greenblatt’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Joel Greenblatt.


Rating: 3.0/5 (6 votes)

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