Weekly Guru Bargains Highlights: MGIC Investment Corp., Forest City Enterprises Inc., CIT Group Inc.
MGIC Investment Corp. (MTG): Down 45% Since Martin Whitman Bought In the Quarter Ended October 2007
All divisions of the mortgage or sub-prime mortgage business are suffering, including the companies that insure the mortgage business, like MTG. The growing delinquent loans forced the company to pay more claims than ever. The company announced that it will anticipate more claim payments throughout the current year. Currently, the posted loss due to claims is $372.5 million, as of the third quarter in 2007. The mortgage insurer anticipates $2 billion in write-downs for 2008. The company declared its quarterly dividend of $0.025 a share. MTG shares have been at its 15-year low.
Martin Whitman added to his MTG holdings to 1,000,000 shares between $19.35 and $36.60. Guru Jean-Marie Eveillard bought 50,000 shares between $28.02 and $57.37. Bill Nygren increased his shares to 1,828,800 shares as of 9/30/07. NWQ Managers currently owns 7,654,091.
Chairman and CEO, Director Curt S. Culver bought 50,000 shares at $19.77. Other insider buys were made between $17.16 and $20.47: President and COO Patrick Sinks bought 29,944 shares; Senior VP & Chief Info Officer Michael G. Meade bought 12,383 shares; EVP Lawrence J. Pierzchalski and Director Daniel P. Kearney each bought 10,000 shares; and Director Leslie M. Muma bought 3,000 shares.
MGIC Investment Corp. has a market cap of $1.48 billion; its shares were traded at around $17.15 with P/S ratio of 0.91. The dividend yield of MGIC Investment Corp. stocks is 0.6%.
Forest City Enterprises Inc. (FCE-A): Down 33% Since Martin Whitman Bought In the Quarter Fourth Quarter Ended October 2007
The Real Estate Holding & Development Company, Forest City Enterprises Inc. (FCE-a), announced a quarterly dividend of $0.08 a share. The company pulled in a third-quarter revenue of $333.6 million versus $262.5 million, and netted a loss of $0.11. The real estate developer is currently gaining positive media spotlight in its Mesa del Sol Operations Center in Albuquerque, New Mexico.
Martin Whitman upped his FCE-a shares by 3.77% to 7,011,858 shares during the quarter ended 10/31. His purchase prices were between $53.56 and $59.67. In the third quarter, Whitman and Ron Baron both increased their holdings by 24.9% Ron Baron and 15.62%, respectively. Other gurus who own FCE-a shares: Third Avenue Management, Chris Davis, Tom Gayner, and Bruce Sherman.
Forest City Enterprises Inc. has a market cap of $4.21 billion; its shares were traded at around $37.51 with a P/E ratio of 38.26 and P/S ratio of 3.11. The dividend yield of Forest City Enterprises Inc. stocks is 0.6%.
CIT Group Inc. (CIT): Down 30% Since Martin Whitman Bought In the Quarter Fourth Quarter Ended October 2007
CIT Group, Inc. (CIT), a commercial finance company, announced plans to sell its U.S. Systems Leasing business unit, worth $700 million in assets, to Macquarie Group Ltd. Vice Chairman Thomas Hallman retired in December of 2007. The company also recorded a $250 million pretax gain from selling its interest in Dell Financial Services to Dell Inc. for the fourth quarter. The quarterly net loss totaled $130.7 million or $0.69 compared to a previous net income of $259.3 million or $1.28.
Martin Whitman and David Dreman both quadrupled their CIT holdings in the last quarter to 1,250,000 shares, and 3,812,916 shares, respectively. Whitman made his buy between $33.76 and $41.51. While gurus Bill Miller and Charles Brandes upped their CIT holdings, Third Avenue Management and Dodge & Cox kept their holdings the same. Guru John Keeley sold out of all his holdings in the third quarter of 2007.
Since early-August, Chairman and CEO, Director, Jeffrey M. Peek, bought 58,300 shares at an average range of $25.30 to $34.86. Another insider buy was made by Director Gary C. Butler, who bought 5,000 shares at $34.77.
CIT Group Inc. has a market cap of $5.82 billion; its shares were traded at around $26.03 with P/S ratio of 1.38. The dividend yield of CIT Group Inc. stocks is 4.2%.