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Daniel Loeb's Top Three Increases of the First Quarter

Monica Wolfe

Monica Wolfe

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Billionaire Daniel Loeb of Third Point LLC has a portfolio consisting of 40 stocks, 12 of those being new buys, valued at $5.3 billion. Loeb is well known in the financial world for writing public letters in which he expresses disapproval of the performance and conduct of other financial executives. In 2012 the guru reported a return of 21.2%, an excess gain of 5.8% over the S&P 500’s return.



AbbVie Inc (ABBV)

Loeb increased his position in AbbVie 609.13%. He bought 2,534,000 shares of the company at an average price of $37.02 per share. Since his buy, the price per share has increased an additional 22.9%. Loeb holds on to 2,950,000 shares of AbbVie. His holdings in the company represent 2.3% of his total portfolio.



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AbbVie is a global biopharmaceutical company that has the ability to discover and advance innovative therapies and meet the health needs of people around the globe. The company’s products can be found in over 170 countries and there are 15 primary research and manufacturing facilities around the world.

The analysis on AbbVie reports:

· The per share revenue has been in decline over the past three years.

· The price is close to a one-year high of $47.17.

· The P/E ratio is at a one-year low.

· The P/S ratio is at a one-year low.

AbbVie has a market cap of $72.23 billion; its shares were traded around $45.44 with a P/E ratio of 13.40 and P/S ratio of 4.00. The dividend yield of AbbVie stocks is 1.7%.

International Paper Co. (IP)

Daniel Loeb bought 5.1 million shares of International Paper Co. in the first quarter, representing a 340% increase in his holdings. He purchased shares for an average price of $43.02. Since his increase, the price per share of International Paper has increased 9.7% from the average purchase price. Loeb owns a total of 6,600,000 shares of International Paper making up 5.8% of his total portfolio.



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International Paper is a global paper and packaging company that is complemented by an extensive North American merchant distribution system, with main markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The company’s businesses are separated into four segments: Industrial Packaging, Printing Papers, Consumer Packaging and Distribution. International Paper is the largest manufacturer of containerboard in the U.S.

The analysis on International Paper reports:

· The operating margin is expanding.

· The price is close to a 10-year high of $48.20.

· The P/B ratio is at its 10-year high of 3.25.

· The P/S ratio is close to its five-year high of 0.75.

International Paper has a market cap of $20.69 billion; its shares traded around $47.20 with a P/E ratio of 24.30 and P/S ratio of 0.70. The dividend yield of International Paper stocks is 2.50%. The company had an annual average earnings growth of 4.6% over the past 10 years.

TransDigm Group (TDG)

In the first quarter Daniel Loeb increased his holdings in the company by 166.67%. He bought 250,000 shares at an average price of $142.34 per share. Since this buy the price per share has increased 3.3%. As of March 31, 2013, Loeb holds on to 400,000 shares — representing 1.2% of his total portfolio.



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TransDigm is a global designer, producer and supplier of engineered aircraft components for use on nearly all commercial and military aircrafts in service today. Its business is diversified due to the range of products it offers to its customers. Some of its product offerings include: mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices cockpit security systems and control technology.

The GuruFocus analysis reports:

· The price is close to a 10-year high of $152.92.

· The P/B ratio is close to a one-year low of 5.69.

· The operating margin is expanding.

· The P/S ratio is close to a 10-year high of 4.89.

TransDigm has a market cap of $7.82 billion; its shares were traded around $147.05 with a P/E ratio of 28.30 and a P/S ratio of 4.40. TransDigm Group had an annual average earnings growth of 21.4% over the past five years.

Daniel Loeb also increased his holdings in Ariad Pharmaceuticals (+10%), Dollar General Corporation (+6.98%) and Constellation Brands (+5.26%).

You can view Daniel Loeb’s complete portfolio here. Also check out his Undervalued Stocks, High Growth Companies and High Yield Companies.

Rating: 2.8/5 (5 votes)

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