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Contrarian Dreman’s Top Impact Sells in Second Quarter

August 17, 2013 | About:
Sally Jones

Sally Jones

49 followers
Known for going against the grain of prevailing market trends, billionaire David Dreman founded Dreman Value Management in 1977. According to the GuruFocus Score Board of Gurus, Dreman has averaged returns of 10.59% over 12 months, a score higher than 21 other Gurus. The current portfolio of Dreman Value Management lists 310 stocks, 13 of them new, with a total value of $3.43 billion, and a quarter over quarter turnover of 5%.

Here’s a look at Dreman’s latest decreases in six companies, trades making the highest impact on his portfolio, as of the second quarter of 2013.

Bank of Hawaii Corporation (BOH): Reduced

Impacts Portfolio: 0.87%

Up 17% over 12 months, Bank of Hawaii Corp. has a market cap of $2.45 billion; its shares were traded at around $54.98 with a P/E ratio of 15.70.

The dividend yield is 3.28%.

Guru Action: As of June 30, 2013, Dreman reduced his position by 91.22%, selling 648,442 shares at an average price of $49.17, for a gain of 11.8%.

He has averaged a gain of 38% on 945,013 shares bought at an average price of $39.87 per share. On shares sold, he averaged a gain of 14% on 882,588 shares sold at an average price of $48.12 per share.

His current shares stand at 62,425.

His trading history:

1376767100831.png

NCR Corporation (NCR): Reduced

Impacts Portfolio: 0.75%

Up 69% over 12 months, NCR Corporation has a market cap of $6.21 billion; its shares were traded at around $37.40 with a P/B ratio of 4.80.

Guru Action: As of June 30, 2013, Dreman reduced his position by 81.44%, selling 1,029,037 shares at an average price of $30.23, for a gain of 23.7%.

He has averaged a gain of 131% on 2,554,844 shares bought at an average price of $16.18 per share. On shares sold, he averaged a gain of 47% on 2,320,320 shares sold at an average price of $25.51 per share.

His current shares stand at 234,524.

1376768625809.png

Foster Wheeler AG (FWLT): Reduced

Impacts Portfolio: 0.71%

Up 19% over 12 months, Foster Wheeler AG has a market cap of $2.37 billion; its shares were traded at around $24.15 with a P/E ratio of 16.80.

Guru Action: As of June 30, 2013, Dreman reduced his position by 82.92%, selling 1,184,525 shares at an average price of $22.18, for a gain of 8.9%.

He has averaged a gain of 21% on 1,794,878 shares bought at an average price of $19.98 per share. On shares sold, he averaged a gain of 7% on 1,550,908 shares sold at an average price of $22.61 per share.

His current shares stand at 243,970.

1376768776853.png

Men’s Wearhouse (MW): Sold Out

Impacts Portfolio: 0.58%

Up 28% over 12 months, Men’s Wearhouse has a market cap of $1.92 billion; its shares were traded at around $38.09 with a P/E ratio of 14.20.

1376768924370.png

Guru Action: As of June 30, 2013, Dreman sold out his holding, selling 654,731 shares at an average price of $34.72, for a gain of 9.7%.

His five-year trading history shows that Dreman made some very high gains.

1376767626148.png

Hanesbrand Inc. (HBI): Reduced

Impacts Portfolio: 0.48%

Up 85% over 12 months, Hanesbrand Inc. has a market cap of $5.9 billion; its shares were traded at around $59.55 with a P/E ratio of 16.70.

The dividend yield 0.67%.

Guru Action: As of June 30, 2013, Dreman reduced his position by 36.54%, selling 389,467 shares at an average price of $49.35, for a gain of 20.7%.

He has averaged a gain of 204% on 2,090,406 shares bought at an average price of $19.57 per share. On shares sold, he averaged a gain of 104% on 2,010,642 shares sold at an average price of $29.14 per share.

His current shares stand at 676,414.

Another remarkable history of gains:

1376768091317.png

Omega Healthcare Investors Inc. (OHI): Reduced

Impacts Portfolio: 0.45%

Up 17% over 12 months, Omega Healthcare Investors has a market cap of $3.27 billion; its shares were traded at around $27.94 with a P/E ratio of 21.00.

The dividend yield is 6.51%.

Guru Action: As of June 30, 2013, Dreman reduced his position by 37.71%, selling 549,345 shares at an average price of $32.87, for a loss of 15%.

He has averaged a gain of 26% on 1,873,273 shares bought at an average price of $22.16 per share. On shares sold, he averaged a 0% loss on 966,036 shares sold at an average price of $27.81 per share.

His current shares stand at 907,237.

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In addition to being the founder and chairman of Dreman Value Management LLC, David Dreman also serves as the firm's chief investment officer. A regular columnist for Forbes for 25 years, Dreman's best-selling book is called, “Contrarian Investment Strategies: The Next Generation?”

Study the rest of David Dreman’s trades in the second quarter of 2013.



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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: 4.0/5 (3 votes)

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