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Weekly Guru Bargains Highlights: MICROS Systems Inc., SLM Corp., GOL Linhas Areas Inteligentes S.A., Motorola Inc., Sprint Nextel Corp.

February 12, 2008 | About:

As the U.S. dollar weakens, prices of materials, consumer goods, and energy have been at their highest in history. Many companies feel the squeeze and the results are evident in their 2007 earnings performance. A lot of Gurus stocks are down. Time for bargain hunting?

MICROS Systems Inc. (MCRS): Down 53% Since Richard Aster Jr. Bought In the Last Quarter of 2007

MICROS Systems, Inc. (MCRS), which designs, manufactures, markets, and services enterprise information solutions for the hospitals and retailers, posted a quarterly revenue increase of 28.5% to $224 million and a profit increase of 14% to $24 million. The company shares underwent a 2-for-1 stock split in January.

Richard Aster Jr. bought 162,980 shares of MCRS stock at $70.10 in the quarter of September.

One large insider sell was made by Chairman, Pres., CEO Athanasios L. Giannopoulos, who sold 140,000 shares 09/20/07 at $62.77. Since September, other sells were made by the company EVPs, who made their sells between $59.95 and $71.03: Thomas L. Patz sold 80,000 shares, T. Paul Armstrong sold a total of 43,881 shares, Bernard Jammet sold 40,050 shares, Jennifer M. Kurdle sold 40,000 shares, Louis M. Brown sold 35,000 shares, and Cynthia A. Russo sold 10,000 shares.

MICROS Systems Inc. has a market cap of $2.78 billion; its shares were traded at around $33.69 with a P/E ratio of 30.02 and P/S ratio of 3.15.

SLM Corp. (SLM): Down 45% Since Brian Rogers Bought In the Last Quarter of 2007

For the fourth quarter, SLM Corporation or Sallie Mae lost $1.6 billion, compared to the previous 2006 fourth quarter profit of $18 million, or $0.02 per share. Overall for the full year, the student loan provider netted a loss of $896.4 million, or $2.26 per share, compared to a profit of $1.15 billion, or $2.63 in 2006. Company representatives stated that less enrollment, and graduation rates in 4-year colleges will cut loans with Sallie Mae. The CFO of SLM stated that the company plans to cut expenses by 20% over the next two years. One recent change made was cutting salary of CEO Albert Lord over half to $1.25 million from $3 million.

Brian Rogers bought 5,910,400 shares between $19.65 and $48.45. While three other gurus increased their SLM holdings—David Tepper, Jean-Marie Eveillard, and Michael Price, two gurus sold out of all their SLM holdings—George Soros and David Dreman.

Large insider sells were made on 12/14/07 by Chairman & CEO, Director Albert L. Lord, and Director Charles L. Daley, who sold a total of 1,265,401 shares, and 80,023 shares, respectively. The CEO and director made their sells between $26.99 and $27.85.

SLM Corp. has a market cap of $9.92 billion; its shares were traded at around $20.75 with P/S ratio of 8.89. The dividend yield of SLM Corp. stocks is 1.8%.

GOL Linhas Areas Inteligentes S.A. (GOL): Down 28% Since Richard Aster Jr. Bought In the Last Quarter of 2007

The South American Airline, Gol Linhas Aéreas Inteligentes S.A. (GOL), plans to buy back five-million shares or 9% of company stock. The ups and downs of oil stock prices have jolted airline shares to rise and fall accordingly; this week, oil prices drops and airline makes gains. GOL reported that its traffic in January increased by 40% to 2.58 million.

Last quarter, Richard Aster Jr. bought 270,100 shares of GOL stock at $25.70.

GOL Linhas Areas Inteligentes S.A. has a market cap of $3.72 billion; its shares were traded at around $18.56 with a P/E ratio of 13.26 and P/S ratio of 1.48. The dividend yield of GOL Linhas Areas Inteligentes S.A. stocks is 2.7%.

Motorola Inc. (MOT): Down 34% Since Dodge & Cox Bought In the Last Quarter of 2007

The telecom equipment company, Motorola, Inc. (MOT)’s fourth quarter profits plunged by 85% as wireless handset sales struggled. The company’s income decreased to $100 million or $0.04 from $623 million or $0.25, as revenue decreased by 18.2% to $9.65 billion. Since October of 2006, the company share price has declined over 60% in value. As cell phone sales dropped by 38% to $4.8 billion, the company made an operating loss of $388 million compared to a profit of $341 million from the previous year.

In the quarter of September, George Soros and John Keeley bought 50,600 shares and 10,350 shares, respectively. Dodge & Cox added to their holdings in Motorola Inc. by 5.88% between $15.66 and $19.18. As Charles Brandes, Bruce Sherman, Robert Olstein, Bill Miller, and Mark Hillman upped their Motorola holdings, Jean-Marie Eveillard reduced his holdings. Edward Lampert sold out his holdings.

Executive VP Padmasree Warrior sold 15,485 shares of MOT stock on 11/20/07 at $16.05.

Motorola Inc. has a market cap of $25.68 billion; its shares were traded at around $11.26 with P/S ratio of 0.71. The dividend yield of Motorola Inc. stocks is 1.9%.

Sprint Nextel Corp. Series 1 (S): Down 40% Since Dodge & Cox Bought In the Last Quarter of 2007

Sprint Nextel Corporation (S) announced that they will expect $31 billion in write-offs from its purchase of Nextel Communications. The wireless communications service provider’s shares have dropped 60% its value since the $35 billion purchase of Nextel in 2005. The company recently closed 8% or 125 of its retail locations and cut 4,000 jobs.

While Dodge & Cox bought Sprint shares at around $15.70, David Dreman sold out his holdings. Several other gurus also owns Sprint shares: Jean-Marie Eveillard, Kenneth Fisher, George Soros, Bill Nygren, Brian Rogers, Chris Davis, NWQ Managers, Mason Hawkins, and Bill Miller.

Director Larry C. Glasscock bought 1,000 shares of S stock on 12/03/07 at $15.83.

Sprint Nextel Corp. Series 1 has a market cap of $26.85 billion; its shares were traded at around $9.44 with a P/E ratio of 205.22 and P/S ratio of 0.67. The dividend yield of Sprint Nextel Corp. Series 1 stocks is 1.1%.

 


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