Free 7-day Trial
All Articles and Columns »

Guru John Paulson Reduces CNO Stake

March 19, 2013 | About:
Sally Jones

Sally Jones

47 followers
Guru John Paulson, founder of Paulson & Co., is the legendary hedge fund investor well-remembered for generating returns of up to 600% by betting against mortgages in the 2008 market crash. In his portfolio weighted towards EFTs, healthcare, communication services and basic materials, Paulson & Co. list 86 stocks with a total value of $16.27 billion as of Dec. 31, 2012. On March 7, 2013, Paulson reduced his position as the largest shareholder of CNO Financial Group Inc. (CNO) by 22.13%. After the trade he owns 16,751,527 shares, with a current price of $11.58, and a change from average up 4%. The current CNO share price is $11.52.

CNO Financial Group Inc. is a holding company for a group of insurance companies operating throughout the U.S. The company’s main insurance subsidiaries are Bankers Life and Casualty Company, Washington National Insurance Company and Colonial Penn Life Insurance Company. The CNO mission is to serve retirement age Americans for a more secure retirement.

CNO Financial Group Inc. has a market cap of $2.56 billion.

The company has a P/E ratio of 12.03, a P/B ratio of 0.51 and a P/S ratio of 0.7485.

GuruFocus conducted a thorough financial and performance checkup on CNO and found these warning signs: A low Altman Z-score of 0.17 shows a company in the distressed zone. CNO Financial Group Inc. revenue has been in decline for the last five years, and the company keeps issuing new debt, $614.5 million of debt over the past three years. Other warnings signs are: The CNO price ($11.55) is close to 5-year high of $12.20. The CNO P/S Ratio (0.7485) is close to a five-year high of 0.7485, and the company had operating loss over the past three years.

A good sign is that the CNO stock dividend yield (0.69%) is close to a one-year high of 0.66%.

According to Bloomberg, CNO has a history of outperforming estimates.

CNO’s revenue per share annual growth:

CNO data by GuruFocus.com

John Paulson’s CNO holding history:



His top buys, top sells and top holdings as of fourth quarter 2012:



GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.3/5 (6 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide