GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Weekly Guru Bargains Highlights: Idearc Inc., The First Marblehead Corp., Qimonda AG, Advanced Micro Devices Inc., SLM Corp.

February 19, 2008 | About:

The Fed predicted a slow 1.8% to 2.7% growth for the 2008 year. Bernanke stated that the economy is undergoing a slowdown not a recession. These stocks have declined in share prices since Gurus have bought.

Idearc Inc. (IAR): Down 59% Since George Soros Bought In the Last Quarter of 2007

Idearc, Inc. (IAR) provides yellow and white page directories and related advertising products such as Verizon Yellow Pages, Superpages.com, etc. The fourth quarter revenue dropped by 1.7% to $787 million and earnings of $0.75 a share. The company’s net income dropped to $100 million from $311 million in the previous year. For 2008, analysts predict a lower profit due to economic slowdown. Idearc’s shares are currently at its lowest.

As Charles Brandes sold out of his Idearc Inc. holdings, George Soros initiated his IAR holdings between $17.02 and $31.64. Soros, David Dreman, and John Keeley increased their holdings to 50,000 shares, 252,800 shares, and 2,281,404 shares respectively.

Idearc Inc. has a market cap of $1.33 billion; its shares were traded at around $9.08 with a P/E ratio of 3.09 and P/S ratio of 0.42. The dividend yield of Idearc Inc. stocks is 8.9%.

The First Marblehead Corp. (FMD): Down 52% Since Richard Snow Bought In the Last Quarter of 2007

The First Marblehead Corporation (FMD), a student loan and service provider posted a

third quarter loss of $117.7 million or $1.26 compared with profit of $81.2 million or $0.85 from the previous year. Due to market instability, the company did not make any student loans deals for the second quarter. Also, the FMD sold 20% to Goldman Sachs for $260.5 million to raise expense funds.

Richard Snow added to his holdings by nearly 60% to 458,595 shares priced between $13.55 and $38.88. Also, Chris Davis owns 1,781,950 shares as of 9/30/07.

Since October, Director Stephen E. Anbinder made large sells totaling 165,000 shares between $14.42 and $39.53. Another sell was made by EVP and President Andrew James Hawley, who sold 13,619 shares at $39.42.

The First Marblehead Corp. has a market cap of $1.35 billion; its shares were traded at around $13.64 with a P/E ratio of 6.43 and P/S ratio of 2.17. The dividend yield of The First Marblehead Corp. stocks is 2.8%.

Qimonda AG (QI): Down 46% Since Dodge & Cox Bought In the Last Quarter of 2007

The third largest memory chip supplier, Qimonda AG (QI) priced $218 million in convertible notes to meet investors’ demand and raise money. QI lost $376 million narrowed their profits by 12% for the fourth quarter. QI is a supplier of DRAM memory products to Infineon-its parent company. For the first quarter ended in December, Infineon also reported a net loss of $583 million due to its 77.5% stake in QI. Infineon invested in QI at $12 a share; however the current price is below $5.

Dodge & Cox upped their holdings by 42% to 22,470,300 shares $7.03 and $10.63. Charles Brandes, Arnold Schneider, and David Tepper have shares in Qimonda.

Qimonda AG has a market cap of $1.57 billion; its shares were traded at around $4.60 with P/S ratio of 0.37.

Advanced Micro Devices Inc. (AMD): Down 41% Since George Soros Bought In the Last Quarter of 2007

World’s number two microprocessor company, Advanced Micro Devices Inc. (AMD) narrowed its fourth quarter loss to $0.17, not including charges; however charges weighed down the losses to $1.77 billion or $3.06 per share compared to $576 million or $1.08 per share in 2006. For the 2007 year, AMD lost $3.38 billion and $2 billion were non-cash charges. The company’s revenues were $6 billion.

George Soros bought 49,000 shares at around $11. Also, Jean-Marie Eveillard bought 40,000 shares and Kenneth Fisher bought 213,950 shares.

Director Paulett Eberhart bought 3,666 shares on 11/27/07 at $10.27.

As of October, insider sells were made between $6.29 and $12.84 by Board Observer James D. Fleck, who sold 25,000 shares; EVP, Chief Admin Officer Thomas M. Mccoy, who sold a total of 8,225 shares; Senior VP Rick Bergman, who sold 8,000 shares; and SVP Michel Cadieux, who sold 817 shares.

Advanced Micro Devices Inc. has a market cap of $3.73 billion; its shares were traded at around $6.45 with P/S ratio of 0.63.

SLM Corp. (SLM): Down 41% Since Michael Price 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 of 2007, 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 a year ago. 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.

Michael Price upped his SLM holdings to 500,000 shares between $19.65 and $48.45. While some gurus increased their SLM holdings—David Tepper, Ruane Cunniff , Seth Klarma, and Brian Rogers, two gurus sold out of all their SLM holdings— Jean-Marie Eveillard 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 $10.25 billion; its shares were traded at around $21.98 with P/S ratio of 9.44. The dividend yield of SLM Corp. stocks is 1.8%.

 


Rating: 4.0/5 (9 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