This last week of the fourth quarter, a surge of Christmas shopping ramped up the sales of the retail sector. The credit crisis pushed the bond insurance sector to be even more volatile. Economists predict that recession will not be in the immediate year. These are the stocks that are down significantly since Gurus bought.
MBIA Inc. (MBI): Down 66% Since Third Avenue Management Bought In the Third Quarter
Bond insurers like MBIA, Inc. (MBI) worry that they may not raise sufficient capital to offset increasing claims. Analysts warned the company that they would need to have $1 billion on top the $1 billion capital investment firm. The company guaranteed $8.1 billion in sub-prime mortgage securities and set its balance sheets awry; as a result, major institutions downgraded MBI ratings.
Third Avenue Management, Martin Whitman, and Arnold Schneider all increased their holdings in MBI stock by 63.4%, 57.5%, and 20.6%, respectively. While Chris Davis and Tom Gayner made little changes to their MBI holdings, Dodge & Cox and Tweedy Browne reduced their holdings by 58.9% and 91% respectively. David Dreman sold out all his MBI holdings.
Insider buys were made in November by Vice President & CFO C. Edward Chaplin, who bought 1,600 shares at $38.06, and Director Richard C. Vaughan, who bought 2,000 shares at $33.34. Vice President Kevin D. Silva sold 6,294 shares on 09/24 at $60.06.
MBIA Inc. has a market cap of $2.52 billion; its shares were traded at around $20.03 with P/E ratio of 4.81 and P/S ratio of 0.95. The dividend yield of MBIA Inc. stocks is 6.8%.
Standard Pacific Corp. (SPF): Down 66% Since Charles Brandes Bought In the Third Quarter
Mid-month, the homebuilder Standard Pacific Corp. (SPF) announced that ninety percent of its shareholders approved of its proposal to increase the total number of shares to 210 million from 110 million.
Charles Brandes bought 520,350 shares between $5.49 and $18.27 with an estimated average price of $11.80. Currently, Ruane Cunniff owns 40,000 shares as of 09/30 and both Ron Baron and Arnold Schneider sold out of all their SPF holdings.
COO Scott D. Stowell bought 5,000 shares in November at $2.24, and 10,000 shares in August at $9.75. Director Jeffrey V. Peterson and President of Southern California Region Todd Jennings Palmaer each bought a total of 10,000 shares since August priced between $4.66 and $10.28. Directors J. Wayne Merck and F. Patt Schiewitz each bought 5,000 shares between $9.43 and $10.25. Finally, Director Douglas C. Jacobs bought 3,000 shares at $5.08, and Director Larry D. Mcnabb bought 2,000 shares at $10.27.
Standard Pacific Corp. has a market cap of $286.74 million; its shares were traded at around $3.99 with P/S ratio of 0.09. The dividend yield of Standard Pacific Corp. stocks is 4%.
Countrywide Financial Corp. (CFC): Down 65% Since Arnold Schneider Bought In the Third Quarter
Countrywide Financial Corporation (CFC)—the largest U.S. mortgage lending and finance-related holding company—is facing a class action lawsuit in California for steering borrowers toward risky loans, which ultimately led to foreclosure. CFC shares have dropped over 70% from $40 to below $10 a share, since January of 2007.
Arnold Schneider upped his CFC holdings by 8.3%, which Schneider bought at an average of $25. Schneider currently owns 4,847,655 shares. Gurus George Soros, Richard Snow, Charles Brandes, Tom Gayner, Richard Pzena, Brian Rogers, Bill Miller, and Wallace Weitz bought shares of CFC stock. Three other gurus own CFC shares: NWQ Managers, Ruane Cunniff, and Ronald Muhlenkamp. Gurus Kenneth Fisher, Rogert Olstein, David Dreman, and John Rogers sold out of all their CFC 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 $5.13 billion; its shares were traded at around $8.77 with P/S ratio of 0.71. The dividend yield of Countrywide Financial Corp. stocks is 6.8%.