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Hedge Fund Billionaire Eddie Lampert Buys Netflix, Big Lots, Sells Gap, Autozone, Capital One Financial

November 14, 2012 | About:
hyperman299

GuruFocus

335 followers
Billionaire financier Eddie Lampert has had a lot of success with investing in retailers. His positions in Autozone, AutoNation gained multi-baggers. Although he seems to be struggling with his largest retailer investment, Sears (SHLD), he still made a lot of money with the position. Now Lampert buys Netflix, and added into another retailer Big Lots, Inc. He sells Gap, Inc., Autozone Inc, Capital One Financial Corp, Cit Group Inc, Seagate Technology Plc, Avon Products Inc etc during the 3-months ended 09/30/2012, according to the most recent filings of his investment company, ESL Investments. Lampert keeps selling AutoNation and Autozone over the past quarters. They are his long term positions and their stock prices have appreciated multiple times. Overall, Eddie sold a lot more stocks than bought during the third quarter.

As of 09/30/2012, ESL Investments owns 10 stocks with a total value of $5.6 billion. These are the details of the buys and sells.

For the details of Edward Lampert's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Edward+Lampert

This is the sector weightings of his portfolio:

Consumer Services 95%
Financials 4.6%
Industrials 0.4%


These are the top 5 holdings of Edward Lampert

  1. Sears Holdings Corporation (SHLD) - 42,274,142 shares, 42.1% of the total portfolio. Shares reduced by 1.68%
  2. AutoNation Inc (AN) - 48,063,910 shares, 37.7% of the total portfolio.
  3. Gap, Inc. (GPS) - 19,334,733 shares, 12.4% of the total portfolio. Shares reduced by 33.79%
  4. Capital One Financial Corp (COF) - 2,991,388 shares, 3.1% of the total portfolio. Shares reduced by 31.62%
  5. AutoZone Inc (AZO) - 197,052 shares, 1.3% of the total portfolio. Shares reduced by 73.04%
New Purchase: Netflix, Inc. (NFLX)

Edward Lampert initiated holdings in Netflix, Inc.. His purchase prices were between $53.76 and $84.87, with an estimated average price of $64.67. The impact to his portfolio due to this purchase was 0.69%. His holdings were 704,381 shares as of 09/30/2012. Netflix Inc. is the largest online movie rental subscription service in the United States providing subscribers access to a comprehensive library of more than 18,000 movie, television and other filmed entertainment titles. Netflix, Inc. has a market cap of $4.33 billion; its shares were traded at around $79.78 with a P/E ratio of 87.5 and P/S ratio of 1.4. Netflix, Inc. had an annual average earnings growth of 44.3% over the past 5 years. GuruFocus rated Netflix, Inc. the business predictability rank of 5-star.

It is not clear why Lampert bought into Netflix. The stock of the company collapsed from $300 a share to its recent $70. Maybe he is saying the opportunity there.

Added: Big Lots, Inc. (BIG)

Edward Lampert added to his holdings in Big Lots, Inc. by 171.18%. His purchase prices were between $29.43 and $41.92, with an estimated average price of $36.37. The impact to his portfolio due to this purchase was 0.48%. His holdings were 1,427,397 shares as of 09/30/2012. Consolidated Stores Corp. is one of the value retailers specializing in closeout merchandise and toys. Big Lots, Inc. has a market cap of $1.72 billion; its shares were traded at around $26.89 with a P/E ratio of 10.2 and P/S ratio of 0.3. Big Lots, Inc. had an annual average earnings growth of 25.3% over the past 10 years. GuruFocus rated Big Lots, Inc. the business predictability rank of 4.5-star.

Sold Out: Cit Group Inc (CIT)

Edward Lampert sold out his holdings in Cit Group Inc. His sale prices were between $34.3 and $41.37, with an estimated average price of $37.45. CIT Group Inc. is a bank holding company that provides financing and leasing capital for commercial companies throughout the world. Cit Group Inc has a market cap of $7.41 billion; its shares were traded at around $36.29 with and P/S ratio of 1.5.

Sold Out: Seagate Technology Plc (STX)

Edward Lampert sold out his holdings in Seagate Technology Plc. His sale prices were between $24.48 and $34.65, with an estimated average price of $29.8. Seagate Technology is the worldwide leader in the design, manufacture and marketing of hard disc drives, providing products for a wide-range of applications, including Enterprise, Desktop, Mobile Computing, Consumer Electronics and Branded Solutions. Seagate Technology Plc has a market cap of $11.4 billion; its shares were traded at around $26.74 with a P/E ratio of 3.7 and P/S ratio of 0.8. The dividend yield of Seagate Technology Plc stocks is 4.4%.

Sold Out: Avon Products Inc (AVP)

Edward Lampert sold out his holdings in Avon Products Inc. His sale prices were between $14.52 and $16.6, with an estimated average price of $15.79. Avon Products, Inc. is one of the world's manufacturers and marketers of beauty and related products, which include cosmetics, fragrance and toiletries; beauty plus which consists of jewelry and accessories and apparel; and non-core which consists of gift and decorative and home entertainment products. Avon Products Inc has a market cap of $6.17 billion; its shares were traded at around $13.82 with a P/E ratio of 16.6 and P/S ratio of 0.6. The dividend yield of Avon Products Inc stocks is 6.4%. Avon Products Inc had an annual average earnings growth of 2.8% over the past 10 years. GuruFocus rated Avon Products Inc the business predictability rank of 3-star.

Reduced: Gap, Inc. (GPS)

Edward Lampert reduced to his holdings in Gap, Inc. by 33.79%. His sale prices were between $27.16 and $36.19, with an estimated average price of $32.49. The impact to his portfolio due to this sale was -4.7%. Edward Lampert still held 19,334,733 shares as of 09/30/2012. The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands. Gap, Inc. has a market cap of $16.17 billion; its shares were traded at around $33.63 with a P/E ratio of 18.9 and P/S ratio of 1.1. The dividend yield of Gap, Inc. stocks is 1.5%. Gap, Inc. had an annual average earnings growth of 15.4% over the past 10 years. GuruFocus rated Gap, Inc. the business predictability rank of 2.5-star.

Reduced: Autozone Inc (AZO)

Edward Lampert reduced to his holdings in Autozone Inc by 73.04%. His sale prices were between $351.99 and $384.24, with an estimated average price of $368.03. The impact to his portfolio due to this sale was -3.43%. Edward Lampert still held 197,052 shares as of 09/30/2012. Autozone is the nation's specialty retailer of automotive parts and accessories, primarily focusing on do-it-yourself customers. Autozone Inc has a market cap of $13.92 billion; its shares were traded at around $370.15 with a P/E ratio of 16 and P/S ratio of 1.6. Autozone Inc had an annual average earnings growth of 17.4% over the past 10 years. GuruFocus rated Autozone Inc the business predictability rank of 4-star.

His success with AutoZone can be seen from the chart below:



He has sold most of his AutoZone shares over the past two years.

Here is the complete portfolio of Edward Lampert. Also check out:

1. Edward Lampert's Undervalued Stocks

2. Edward Lampert's Top Growth Companies, and

3. Edward Lampert's High Yield stocks


Rating: 2.8/5 (5 votes)

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