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Irving Kahn Increases Four

August 11, 2013 | About:
Sally Jones

Sally Jones

49 followers
Not many investors can claim 84 years of experience on their vitae. Born in 1905, America’s oldest value investor Irving Kahn, age 107, grew up in an era when 'news boys' delivered the newspaper and long before anyone could envision that news would someday be delivered digitally.

With so many newspapers still suffering the internet impact, New York Times Company (NYT) saw its circulation revenues rise 5% percent in the second quarter of 2013, led by digital subscription initiatives. NYT’s paid digital subscriptions have increased nearly 40% year-over-year from the end of the second quarter of 2012. NYT is Kahn’s top holding, with 9.2% of his portfolio weight.

GuruFocus Real Time Picks shows that as of June 30, 2013, centenarian Irving Kahn increased his position with four stocks, with more than eight decades of investing experience backing him up.

New York Times Company (NYT)

Kahn’s Current Shares: 5,385,808

Kahn Brothers increased its position by 4.53% with the New York Times Company (NYT), buying 233,200 shares at an average price of $9.83, for a 21.5% gain.

Kahn has averaged a 29% gain on the 5,388,112 shares bought since the second quarter of 2008, with an average price of $9.28. On 2,304 shares sold at an average price of $21.75, he has averaged a loss of 45%.

Up 32% over 12 months, NYT has a market cap of $1.78 billion, and trades with a P/E of 20.50, a P/B of 2.70, and a P/S of 0.93. Current share price is $11.94, compared to historical pricing.

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The New York Times Company reported operating profit of $53.4 million in the second quarter of 2013 compared with $44.1 million in the same period of 2012. Excluding depreciation, amortization and severance, operating profit rose 13 percent to $77.8 million from $68.8 million in the second quarter of 2012. The company also reported diluted earnings per share from continuing operations of $.13 compared with $.25 in the same period of 2012. Excluding severance and the 2012 special item discussed below, diluted earnings per share from continuing operations were $.14 in the second quarter of 2013 compared with $.11 in the second quarter of 2012, according to a company press release.

NYT’s president and chief executive officer, Mark Thompson, commented “The increase in operating profit reflects the ongoing evolution of our digital subscription initiatives on the circulation side, the moderation of revenue declines on the advertising side and the continued focus on managing costs.”

The company’s net income in 2012 was $133 million compared to a net loss of $39.6 million in the year prior.

Merck & Co. Inc. (MRK)

Kahn’s Current Shares: 1,215,659

Kahn Brothers also increased its position with Merck & Co. Inc. (MRK) by 4.38%, buying 50,998 shares at an average price of $46.81, for a 3.4% gain. For the 1,888,219 shares bought since the second quarter of 2005, Kahn’s average price was $41.90 per share with a 15% gain.

Up 9% over 12 months, MRK has a market cap of $146.12 billion, and trades at a P/E of 24.80, a P/B of 2.70 and a P/S of 3.22. The current share price is $48.39.

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Merck announced its second quarter 2013 financial results highlighting $11 billion in revenue, a decrease of 11%. The company had non-GAAP EPS of $0.84, and GAAP EPS of $0.30. The company reaffirmed its full-year non-GAAP EPS target of $3.45 to $3.55, excluding certain items and a revised GAAP EPS range of $1.84 to $2.05. Merck has seen growth in key franchises including vaccines, diabetes and immunology, and a continued return of cash to shareholders, including the $5 billion accelerated share repurchase announced in May, according to a company press release.

New York Community Bancorp Inc. (NYCB)

Kahn’s Current Shares: 4,006,237

In second quarter 2013, Kahn Brothers also increased its position with another long-time holding, New York Community Bancorp Inc. (NYCB) by 3.74%, buying 144,329 shares at an average price of $13.51, for a 13.8% gain. For the 4,006,237 shares bought since the second quarter of 2005, Kahn’s average cost was $13.48 per share with a 14% gain.

NYCB reported second quarter 2013 GAAP earnings of $122.5 million, or $0.28 per diluted share, and $241.2 million, or $0.55 per diluted share for the six months ending June 30, 2013. The company’s balance sheet shows assets of $44.2 billion as of June 30, 2013. The company had a net income of $501.1 million in 2012.

Up 17% over 12 months, NYCB has a market cap of $6.78 billion, and trades with a P/E of 13.30, a P/B of 1.20, and a P/S of 4.62. The current share price is $15.37.

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New York Community Bancorp Inc. is the 20th largest bank holding company in the nation and a leading producer of multi-family loans in New York City, with an emphasis on apartment buildings that feature below-market rents. NYCB operates two bank subsidiaries—New York Community Bank, a thrift, with 239 branches in Metro New York, New Jersey, Ohio, Florida and Arizona--and New York Commercial Bank, with 35 branches in New York City, Westchester County and Long Island, including 18 branches that operate under the name Atlantic Bank.

Nam Tai Electronics (NTE)

Kahn’s Current Shares: 3,736,917

Irving Kahn also increased his position with components manufacturer Nam Tai Electronics (NTE) by 9.24%, buying 315,981 shares at an average price of $8.96, for a 14.5% loss. For the 3,828,873 shares bought since the second quarter of 2008, Kahn’s average price was $9.90 per share with a 23% loss.

Up 15% over 12 months, Nam Tai has a market cap of $343.2 million, and trades with a P/E of 4.70, a P/B of 0.80 and a P/S of 0.27. The current share price is $7.66.

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For the second quarter of 2013, Nam Tai Electronics reported sales of $167.9 million, up 64%, with a net income loss of $31.9 million. The company’s gross profit margin was at 9.4%, compared to 15% in the same quarter a year ago. The company’s net income for first quarter 2013 was reported at $4.9 million, compared to a loss of $3.6 million in the same quarter a year ago.

More Second Quarter Action

Guru Irving Kahn also reduced ten of his positions in the second quarter of 2013.

Here are the trade details.

Irving Kahn, along with brothers Alan and Thomas, founded Kahn Brothers & Company Inc., in 1978, which later became Kahn Brothers Group. The company portfolio lists 46 stocks, none of them new, with a total value of $648 million and a 1% quarter over quarter turnover, according to the recent GuruFocus update.



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.3/5 (3 votes)

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