Where will financial industry go? The fed cut interest by a quarter point, and the legislation tries to protect homeowners from foreclosure and bankruptcy measures. As energy cost increase and the credit market tumble, financial stocks continue their declines since Gurus bought. Are they bargains or traps? Related companies: Indymac Bancorp Inc. (IMB, Financial), TravelCenters of America LLC (TA, Financial), Ambac Financial Group Inc. (ABK, Financial), Radian Group Inc. (RDN, Financial), Edge Petroleum Corp. (EPEX, Financial), North American Palladium Ltd (PAL, Financial).
Indymac Bancorp Inc. (IMB): Down 67% Since Bill Miller Bought In the Quarter Ended
Indymac Bancorp Inc. (IMB), one of the largest mortgage originators, reported a third quarter loss of $202.7 million due to the mortgage crisis and credit crunch. The company’s stock have dropped by 83% from $47.00 within the the past year. Because of rising credit losses, low profits, and non-performing loans, the S&P changed Indymac’s credit rating to junk-status.
Guru Bill Miller bought 2,800,000 shares between $18.74 and $29.56. While guru Richard Pzena increased his Indymac holdings to 693,329 shares, NWQ Managers kept their Indymac shares the same at 8,251,360. Both Arnold Schneider and John Keeley sold out their IMB holdings.
Director Louis E. Caldera bought 2,000 shares mid-November at $11.45.
Indymac Bancorp Inc. has a market cap of $534.44 million; its shares were traded at around $7.61 with P/S ratio of 0.70. The dividend yield of Indymac Bancorp Inc. stocks is 11.8%.
TravelCenters of America LLC (TA): Down 63% Since George Soros Bought In the Third Quarter
End of November, Travel Centers of America LLC (TA) announced their new CFO, Andrew Rebholz, to replace John Hoadley. The highway fuel, service, and refreshment franchise reported a third quarter loss of $0.90 or $12.6 million, compared to a previous third quarter gain of $1.84 or $14 million. The company stated that the 9-month decline was due to “$80 million of aggregate costs incurred by [their] predecessor, associated with the merger.” The merger refers to Petro, Travel Center’s prior competitor.
Guru George Soros increased his Travel Center holdings by 89.62% to 104,100 shares at an average price of $36 per share.
TravelCenters of America LLC has a market cap of $189.64 million; its shares were traded at around $13.44 with P/S ratio of 0.03.
Ambac Financial Group Inc. (ABK): Down 64% Since Chris Davis Bought In the Quarter Ended
This week, Ambac Financial Group, Inc. (ABK), the second largest bond insurer, made a business transaction with Assured Guranty Ltd to heighten business. The agreement allowed Assured Guranty Ltd to reinsure ABK’s $29 billion portfolio in bonds and financial contracts. ABK’s downfall can be linked back to high risk sub-prime mortgages. Although company stock has dropped by 74% within the past half a year, its third quarter earnings were $1.88 a share on revenue of $422.2 million.
Chris Davis added his ABK holdings by 55.4% to 6,506,767 shares, which were purchased at around $68.50. Currently, three other gurus own ABK stock: Tom Gayner with 10,000 shares, Martin Whitman with 300,000 shares, and Third Avenue Management with 537,495 shares. David Dreman and Dodge & Cox sold out of all ABK holdings.
In November, Chairman, President and CEO, Director Robert J. Genader bought 10,000 shares at $25.25; and EVP John W. Uhlein bought 7,500 shares at $41.38. As of October, Directors of ABK purchased stocks between $25.54 and $41.85: Kathleen A. Mcdonough bought 10,000 shares, David W. Wallis bought 2,500 shares, Thomas C. Theobald bought 4,000 shares, Michael A. Callen bought 3,000 shares, Henry D. G. Wallace bought 2,250 shares, and Thomas J. Gandolfo bought 1,000 shares.
Ambac Financial Group Inc. has a market cap of $2.4 billion; its shares were traded at around $24.87 with P/E ratio of 10.85 and P/S ratio of 2.56. The dividend yield of Ambac Financial Group Inc. stocks is 3.3%.
Radian Group Inc. (RDN): Down 61% Since Bill Miller Bought In the Third Quarter
Radian Group Inc. (RDN), a mortgage insurer, posted a huge third quarter loss of $8.82 a share, or $703.9 million. Earlier in the year, Radian made an agreement with its affiliate MGIC to invest in sub-prime mortgages by creating a merged company: Credit Based Asset Servicing and Securitization LLC, or C-BASS. In the third quarter, C-BASS was on the verge of bankruptcy, thus, the parent companies decided to terminate the agreement, and write off the $1.03 billion investment. Currently, C-BASS sold their servicing business to Goldman Sachs to resolve creditor issues.
Guru Bill Miller bought 3,800,000 shares of RDN stock between $17.23 and $54.98. Arnold Schneider, Third Avenue Management, Martin Whitman, NWQ Managers, and Jean-Marie Eveillard all currently own RDN stock. Martin Whitman owns more than 15 millions shares as of Oct. 31. He started to buy when prices were at $60s, and he continues to add to his positions as prices declined to current levels.
CEO Sanford A. Ibrahim and Director Herbert Wender bought 15,000, and 3,400 shares respectively around $16.92.
Radian Group Inc. has a market cap of $927.78 million; its shares were traded at around $11.61 with P/S ratio of 1.39. The dividend yield of Radian Group Inc. stocks is 0.8%.
Edge Petroleum Corp. (EPEX): Down 58% Since Richard Aster Jr. Bought In the Third Quarter
The independent crude oil and natural gas company, Edge Petroleum Corp., announced a third quarter earnings increase by 34% from $35.9 million in the previous year to a current $48.2 million. The third quarter net income was $4.0 million compared to net loss of $56.9 million from the previous third quarter. As for the sector trend, the increase in oil production is pushing crude oil prices down below $90 a barrel.
Guru Richard Aster Jr. bought 685,200 shares at an average of $13.30. Also, Guru Robert Bruce owns 142,223 shares.
Edge Petroleum Corp. has a market cap of $163.83 million; its shares were traded at around $5.59 with P/S ratio of 1.03.
North American Palladium Ltd (PAL): Down 58% Since Guru George Soros Bought In the Third Quarter
North American Palladium, Ltd., a Toronto-based precious metal mining company, closed its $75 million public offering. The company suffered a third quarter loss of $14 million or $0.25 per share compared to a loss of $11.2 million or $0.21 per share in the previous year. The company’s cost in mining operations, increase in palladium production, and foreign exchange adjustments were the key factors that played in the loss.
George Soros added to his PAL holdings by 17,703 shares priced between $6.58 and $10.48.
North American Palladium Ltd has a market cap of $199.57 million; its shares were traded at around $3.4 with P/S ratio of 0.89.
Indymac Bancorp Inc. (IMB): Down 67% Since Bill Miller Bought In the Quarter Ended
Indymac Bancorp Inc. (IMB), one of the largest mortgage originators, reported a third quarter loss of $202.7 million due to the mortgage crisis and credit crunch. The company’s stock have dropped by 83% from $47.00 within the the past year. Because of rising credit losses, low profits, and non-performing loans, the S&P changed Indymac’s credit rating to junk-status.
Guru Bill Miller bought 2,800,000 shares between $18.74 and $29.56. While guru Richard Pzena increased his Indymac holdings to 693,329 shares, NWQ Managers kept their Indymac shares the same at 8,251,360. Both Arnold Schneider and John Keeley sold out their IMB holdings.
Director Louis E. Caldera bought 2,000 shares mid-November at $11.45.
Indymac Bancorp Inc. has a market cap of $534.44 million; its shares were traded at around $7.61 with P/S ratio of 0.70. The dividend yield of Indymac Bancorp Inc. stocks is 11.8%.
TravelCenters of America LLC (TA): Down 63% Since George Soros Bought In the Third Quarter
End of November, Travel Centers of America LLC (TA) announced their new CFO, Andrew Rebholz, to replace John Hoadley. The highway fuel, service, and refreshment franchise reported a third quarter loss of $0.90 or $12.6 million, compared to a previous third quarter gain of $1.84 or $14 million. The company stated that the 9-month decline was due to “$80 million of aggregate costs incurred by [their] predecessor, associated with the merger.” The merger refers to Petro, Travel Center’s prior competitor.
Guru George Soros increased his Travel Center holdings by 89.62% to 104,100 shares at an average price of $36 per share.
TravelCenters of America LLC has a market cap of $189.64 million; its shares were traded at around $13.44 with P/S ratio of 0.03.
Ambac Financial Group Inc. (ABK): Down 64% Since Chris Davis Bought In the Quarter Ended
This week, Ambac Financial Group, Inc. (ABK), the second largest bond insurer, made a business transaction with Assured Guranty Ltd to heighten business. The agreement allowed Assured Guranty Ltd to reinsure ABK’s $29 billion portfolio in bonds and financial contracts. ABK’s downfall can be linked back to high risk sub-prime mortgages. Although company stock has dropped by 74% within the past half a year, its third quarter earnings were $1.88 a share on revenue of $422.2 million.
Chris Davis added his ABK holdings by 55.4% to 6,506,767 shares, which were purchased at around $68.50. Currently, three other gurus own ABK stock: Tom Gayner with 10,000 shares, Martin Whitman with 300,000 shares, and Third Avenue Management with 537,495 shares. David Dreman and Dodge & Cox sold out of all ABK holdings.
In November, Chairman, President and CEO, Director Robert J. Genader bought 10,000 shares at $25.25; and EVP John W. Uhlein bought 7,500 shares at $41.38. As of October, Directors of ABK purchased stocks between $25.54 and $41.85: Kathleen A. Mcdonough bought 10,000 shares, David W. Wallis bought 2,500 shares, Thomas C. Theobald bought 4,000 shares, Michael A. Callen bought 3,000 shares, Henry D. G. Wallace bought 2,250 shares, and Thomas J. Gandolfo bought 1,000 shares.
Ambac Financial Group Inc. has a market cap of $2.4 billion; its shares were traded at around $24.87 with P/E ratio of 10.85 and P/S ratio of 2.56. The dividend yield of Ambac Financial Group Inc. stocks is 3.3%.
Radian Group Inc. (RDN): Down 61% Since Bill Miller Bought In the Third Quarter
Radian Group Inc. (RDN), a mortgage insurer, posted a huge third quarter loss of $8.82 a share, or $703.9 million. Earlier in the year, Radian made an agreement with its affiliate MGIC to invest in sub-prime mortgages by creating a merged company: Credit Based Asset Servicing and Securitization LLC, or C-BASS. In the third quarter, C-BASS was on the verge of bankruptcy, thus, the parent companies decided to terminate the agreement, and write off the $1.03 billion investment. Currently, C-BASS sold their servicing business to Goldman Sachs to resolve creditor issues.
Guru Bill Miller bought 3,800,000 shares of RDN stock between $17.23 and $54.98. Arnold Schneider, Third Avenue Management, Martin Whitman, NWQ Managers, and Jean-Marie Eveillard all currently own RDN stock. Martin Whitman owns more than 15 millions shares as of Oct. 31. He started to buy when prices were at $60s, and he continues to add to his positions as prices declined to current levels.
CEO Sanford A. Ibrahim and Director Herbert Wender bought 15,000, and 3,400 shares respectively around $16.92.
Radian Group Inc. has a market cap of $927.78 million; its shares were traded at around $11.61 with P/S ratio of 1.39. The dividend yield of Radian Group Inc. stocks is 0.8%.
Edge Petroleum Corp. (EPEX): Down 58% Since Richard Aster Jr. Bought In the Third Quarter
The independent crude oil and natural gas company, Edge Petroleum Corp., announced a third quarter earnings increase by 34% from $35.9 million in the previous year to a current $48.2 million. The third quarter net income was $4.0 million compared to net loss of $56.9 million from the previous third quarter. As for the sector trend, the increase in oil production is pushing crude oil prices down below $90 a barrel.
Guru Richard Aster Jr. bought 685,200 shares at an average of $13.30. Also, Guru Robert Bruce owns 142,223 shares.
Edge Petroleum Corp. has a market cap of $163.83 million; its shares were traded at around $5.59 with P/S ratio of 1.03.
North American Palladium Ltd (PAL): Down 58% Since Guru George Soros Bought In the Third Quarter
North American Palladium, Ltd., a Toronto-based precious metal mining company, closed its $75 million public offering. The company suffered a third quarter loss of $14 million or $0.25 per share compared to a loss of $11.2 million or $0.21 per share in the previous year. The company’s cost in mining operations, increase in palladium production, and foreign exchange adjustments were the key factors that played in the loss.
George Soros added to his PAL holdings by 17,703 shares priced between $6.58 and $10.48.
North American Palladium Ltd has a market cap of $199.57 million; its shares were traded at around $3.4 with P/S ratio of 0.89.
