According to GuruFocus Real Time Picks, Steven Cohen increased his holdings in two of his stocks this past week. The guru has been under a lot of fire for his involvement (or lack thereof) in a series of insider trading scandals that have plagued his fund, SAC Capital, over the past few months. Despite the turmoil, Cohen made noticeable increases in both Foster Wheeler AG and Blue Nile this past week.
Foster Wheeler AG (FWLT)
As reported to GuruFocus, on Aug. 1 Steven Cohen increased his holdings in Foster Wheeler by 41.58%. The guru purchased a total of 1,517,637 shares at an average price of $21.64 per share. Since his buy, the price per share has increased approximately 1%.
Cohen now holds on to a total of 5,167,407 shares of Foster Wheeler, representing 4.95% of the company’s shares outstanding. Cohen’s holding history of Foster Wheeler as of the first quarter:
Foster Wheeler, together with its subsidiaries, is a provider of construction and engineering services. The company serves the oil and gas, oil refining, chemical and petrochemical, environmental, power generation, and power plant operation and maintenance industries worldwide.
Foster Wheeler’s historical revenue and net income:
The company is set to release their second quarter financial results on Aug. 8.
Foster Wheeler has recently been expanding their businesses further into Venezuela, Vietnam and China. Also over the past quarter, Foster Wheeler has acquired a specialist upstream consultancy company from the UK as well as a Mexican engineering company.
The Peter Lynch Chart shows that the company currently appears to be overvalued:
Foster Wheeler has a market cap of $2.2 billion. Its shares are currently trading at around $22.24 with a P/E ratio of 21.90, a P/S ratio of 0.70 and a P/B ratio of 3.60.
Blue Nile (NILE)
Also on Aug. 1, Cohen upped his position in Blue Nile by 104.53%. The guru purchased a total of 342,114 shares of Blue Nile at an average price of $37.50. Since his buy, the price per share has increased approximately 4%. Cohen now holds a total of 669,414 shares of Blue Nile, representing 5.37% of the company’s shares outstanding.
Cohen’s holding history as of March 31:
Blue Nile is an online retailer of diamonds and fine jewelry. Its merchandise consists of diamonds and fine jewelry, with a particular focus on engagement diamonds and settings.
Blue Nile’s historical net income and revenue:
The company’s second quarter financial results highlighted:
· Sales increased 18.7% to $108 million.
· Net income totaled $2.2 million, or fully diluted EPS of $0.17.
· Free cash flow totaled $22.9 million.
· President and CEO Harvey Kanter will succeed founder Mark Vadon as Chairman on Dec. 31, 2013.
The Peter Lynch Chart shows that the company is overvalued:
Blue Nile has a market cap of $468.9 million. Its shares are currently trading at around $39.35 with a P/E ratio of 56.70, a P/S ratio of 1.20 and a P/B ratio of 32.70. The company has seen an average annual earnings growth of 5.8% over the past ten years.