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George Soros' Top 5 New Buys, Including J.C. Penney and Herbalife

August 15, 2013 | About:
Holly LaFon

Holly LaFon

249 followers
George Soros is the 30th richest person in the world on Forbes billionaires list, and manages $24 billion of his own money at Soros Fund Management LLC after kicking out other investors last year in 2011 in disagreement with new SEC rules. Soros pioneered the idea of reflexivity, which posits that the emotional biases of individuals irrationally determines movement of markets.

In the second quarter, Soros reported owning 203 new stocks, valued at $9.2 billion. Fifty-nine of them were purchased during the second quarter, the largest of which are J.C. Penney Co. Inc. (JCP), Herbalife Ltd. (HLF), CA Inc. (CA), Occidental Petroleum Corporation (OXY), Outerwall Inc. (OUTR) and FMC Corp. (FMC).

J.C. Penney Co. Inc. (JCP)

Soros purchased 19,986,361 shares of J.C. Penney in the second quarter when the price was $17. This equals a 9.09 stake in the company, and 3.7% of Soros’ long equity portfolio. The price has declined 19% from the average price since.

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J.C. Penney Company Inc. was founded in 1902. It operates as a holding company whose main operating subsidiary is J.C. Penney Co. Inc. It has a market cap of $3.05 billion; its shares were traded at around $13.84 with and P/S ratio of 0.20. The dividend yield of J.C. Penney Co. Inc. stocks is 1.40%.

J.C. Penney’s earnings and revenue history:

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Herbalife Ltd. (HLF)

Soros purchased 5,039,175 shares of Herbalife Ltd., a 4.89% stake in the company and 2.5% of his portfolio. The price of the stock averaged $43 in the second quarter and has risen 53% since.

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Herbalife Ltd. was founded in 1980 by Mark Hughes. Herbalife Ltd. has a market cap of $6.72 billion; its shares were traded at around $65.23 with a P/E ratio of 14.40 and P/S ratio of 1.60. The dividend yield of Herbalife Ltd. stocks is 1.80%. Herbalife Ltd. had an annual average earnings growth of 13% over the past 10 years.

Herbalife revenue and earnings history:

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The Peter Lynch chart indicates the stock is undervalued:

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CA Inc. (CA)

Soros purchased 1,306,666 shares of CA Inc. in the second quarter when the average price was $27. The stake represents 0.41% of the portfolio and 0.29% of shares outstanding.

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CA Inc. was incorporated in Delaware in 1974, began operations in 1976 and completed an initial public offering of common stock in December 1981. CA Inc. has a market cap of $14.11 billion; its shares were traded at around $30.97 with a P/E ratio of 13.40 and P/S ratio of 3.10. The dividend yield of CA Inc. stocks is 3.20%. CA Inc. had an annual average earnings growth of 14.6% over the past 10 years. GuruFocus rated CA Inc. the business predictability rank of 5-star.

CA revenue and earnings history:

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The Peter Lynch chart reports the company as undervalued:

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Occidental Petroleum Corporation (OXY)

Soros purchased 383,587 shares of Occidental Petroleum in the second quarter when the price averaged $88. The hold represents 0.37% of his portfolio and 0.05% of shares outstanding. The price is about flat.

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Occidental Petroleum Corporation is a Delaware corporation. Occidental Petroleum Corporation has a market cap of $70.09 billion; its shares were traded at around $86.99 with a P/E ratio of 15.80 and P/S ratio of 2.90. The dividend yield of Occidental Petroleum Corporation stocks is 2.70%. Occidental Petroleum Corporation had an annual average earnings growth of 9.8% over the past 10 years.

Occidental earnings and revenue history:

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The Peter Lynch chart suggests it is about fairly valued:

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Outerwall Inc. (OUTR)

Soros purchased 450,000 shares of Outerwall Inc. in the second quarter when the price averaged $57. The holding represents 0.29% of his portfolio and 1.61% of shares outstanding. The price increased 12% since.

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Outerwall Inc. has a market cap of $1.77 billion; its shares were traded at around $63.20 with a P/E ratio of 14.70 and P/S ratio of 0.90. Outerwall Inc. had an annual average earnings growth of 19.7% over the past 10 years. GuruFocus rated Outerwall Inc. the business predictability rank of 2-star.

Outerwall earnings and revenue history:

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The Peter Lynch chart suggests the stock is about fairly valued:

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FMC Corp. (FMC)

Soros purchased 373,179 shares of FMC Corp. in the second quarter when the price averaged $61. The holding represents 0.25% of his portfolio and 0.27% of shares outstanding. The price has increased 7% since.

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FMC Corporation was incorporated in 1928 under Delaware law. FMC Corporation has a market cap of $8.87 billion; its shares were traded at around $64.99 with a P/E ratio of 19.50 and P/S ratio of 2.33. The dividend yield of FMC Corporation stocks is 0.80%. FMC Corporation had an annual average earnings growth of 10.6% over the past 10 years. GuruFocus rated FMC Corporation the business predictability rank of 2.5-star.

FMC Corp. earnings and revenue history:

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The Peter Lynch chart suggests the company is overvalued:

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For more George Soros trades, visit his portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of George Soros.

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Rating: 2.6/5 (5 votes)

Comments

JonesC
JonesC - 11 months ago
Hello Holly,

Fantastic article, as always. I have been searching for a way to contact you via email with a couple of questions I have regarding the Peter Lynch and Warren Buffett investment systems that I have not been able to find the answers to, despite massive study. They might potentially be good article ideas, or simply turn out to be perceived as too "beginner questionish" for an article, but I would like to ask you for your best answer to them anyway. Is there an email address that you can be contacted at?

Thank you.

Please leave your comment:


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