“We select securities, one at a time, based on asset valuations, operating performance metrics and long-term fundamental business prospects,” stated in an investment philosophy description on the Kahn Brothers website. “Unlike many investment managers, we spend a considerable amount of effort evaluating the downside risk of every investment.”
Kahn reduced the most shares of the following stocks in his portfolio: Syms Corp. (SYMSQ) selling all of his shares of the company, Chevron Corp. (NYSE:CVX) reducing his shareholding by 50.3 percent and AT&T Inc. (NYSE:T) reducing his shareholding by 31.43 percent.
Additionally, Kahn reduced his shares of Comcast Corp. (NASDAQ:CMCSA) and Bristo-Myers Squibb Company (NYSE:BMY).
Irving Kahn sold all of his shares of discount retailer, Syms Corp. (SYMSQ) as of the quarter ending Sept. 30. The company’s price range started at $2.90 and went as high as $7.75 throughout its stint in the marketplace.
After filing for bankruptcy in November of last year, Syms is currently undergoing a complete reorganization of its company, which has been renamed to Trinity Place Holdings Inc. (TPHS), under Chapter 11 of Title 11 of the United States Bankruptcy Code
Prior to filing for bankruptcy, Syms and its subsidiary, Filene’s Basement, LLC, according to an SEC filing, owned and operated 46 retail stores nationwide, and offered merchandise at prices lower than average department stores, many labeled in designer names, for men, women and children. After a series of store closing sales marketed to coincide with last year’s Thanksgiving holidays, and experiencing the combination of retail competition and low consumer sales, Syms officially closed up shop Dec. 31, 2011.
Syms’ final price was $3.46. Trinity Place Holdings is currently trading at $4.01. Kahn has reported to owning 597,754 shares of Trinity as of the third quarter.
Chevron Corp. (NYSE:CVX)
Since the second quarter of 2007, Irving Kahn started off with 34,735 shares of Chevron Corp. (NYSE:CVX). After selling half of his shares, in the third quarter of this year, he now has a shareholding of 8,398 shares, which represents his lowest shareholding of the company recorded on GuruFocus Guru Trade summary.
Chevron reported an earnings of $5.3 billion for the third quarter of this year ($2.69 per diluted share), compared with $7.8 billion in the third quarter of last year. With foreign currency modifications, down crude oil prices and oil field maintenance preventing the oil and gas production in several locations vastly contributed to Chevron’s slower growth this year.
Chevron also reported sales and other operating revenues at $56 billion compared to $61 billion in the same period last year.
Despite recent setbacks, Chevron chairman and CEO John Watson said in a press release that the company is focused on bringing shareholder returns, purchasing $1.25 billion of its own common stock through its share repurchase program in the third quarter.
Chevron is part of the 5.7 percent in Kahn’s portfolio that makes up the oil and gas industry, which is the fifth largest industry represented in Kahns 46-stock portfolio. The company is currently selling at $108.64.
Irving Kahn currently owns 20,665 shares of AT&T (NYSE:T) after reducing his shareholding by 31.43 percent. This, too, places Kahn at his lowest shareholding of the company since record started in 2007.
AT&T is in a price recovery state, almost matching its market price five years ago, before deflating down about $20 between 2009 and 2011.
According to AT&T chairman and CEO, Randall Stephenson in a press release, AT&T had an impressive quarter with strong earnings growth and solid returns to shareholders through dividends and share buybacks.
“Our strong performance allows us to increase our free cash flow guidance to $18 billon or higher this year, exceeding our previous outlook by $2 billion,” he said.
AT&T had a total revue of about $31.5 billion, which was “flat” compared to last year’s, according to the release. The company reported a free cash flow of $6.5 billion for the third quarter, and projects $18 billion or higher by the end of the year.
Its long-term debt recorded in its 10-Year Financials is $61 billion as of the end of the second quarter
AT&T is currently trading at $34.59. Kahn is 0.14 percent owner of the company.
View the rest of Irving Kahn’s portfolio details here. Also view his high yield stocks, top growth companies and undervalued stocks.