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Steve Mandel's Real Time Increases in Dollar General and DSW

August 27, 2013 | About:
Monica Wolfe

Monica Wolfe

122 followers
On Aug. 26, Lone Pine Capital’s Steve Mandel made two real time increases to his positions in Dollar General and DSW. Earlier this month Mandel made his first purchase into SolarWinds (SWI) and increased his holdings in Michael Kors (KORS).

During the second quarter Steve Mandel sold out of 11 stocks and bought 12 new companies, bringing his total number of stocks owned to 59 valued at $20.534 billion.



Mandel’s Real Time Increases

Dollar General (DG)

On Aug. 26 Mandel added to his holdings in Dollar General. The guru upped his stake by 29.51% by adding a total of 4,029,435 shares to his stake. Mandel bought these shares at an average price of $55.05, and since then the share price has increased approximately 1%.

During the second quarter Mandel sold over 500,000 shares of DG at an estimated average price of $51.85. The price has increased 7.2% since then.

Lone Pine now holds on to 17,684,604 shares of Dollar General representing 5.41% of the company’s shares outstanding. Steve Mandel’s holding history as of the second quarter:

1377620744400.png

Dollar General is the largest discount retailer in the U.S. by number of stores. The company offers private and national branded items that are frequently used and replenished, such as food, health and beauty aids, cleaning supplies, house wares and seasonal items.

Dollar General’s historical revenue and net income:

1377623419057.png

The company’s second quarter results are set to be released on Sept. 4, 2013.

In June the company released that they had repurchased 200 million shares at a cost of approximately $1.1 billion.

The Peter Lynch Chart suggests that the company is currently overvalued:

1377623593968.png

Dollar General has a market cap of $18.02 billion. Its shares are currently trading at around $55.04 with a P/E ratio of 19.00, a P/S ratio of 1.10 and a P/B ratio of 3.50. The company had an annual average earnings growth of 14.6% over the past ten years.

There are currently 17 gurus that hold a position in Dollar General.

DSW Inc. (DSW)

Also on Aug. 26, Steve Mandel upped his stake in DSW. The guru increased his position a notable 131.68% by purchasing a total of 1,162,354 shares. He bought these shares at an average price of $80.80, and since then the price per share has increased approximately 1%.

Mandel made his initial buy into DSW in 2013Q2 when he purchased 882,710 shares at an estimated average quarterly price of $68.97. Since his first buy, he’s seen gains of 18%.

Lone Pine now maintains 2,045,064 shares of DSW, representing 4.54% of the company’s shares outstanding. Steve Mandel’s holding history as of the second quarter:

1377621491633.png

DSW is a branded footwear and accessories retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear and accessories for women, men and kids. As of May 18, 2013, DSW operated 377 stores in 42 states.

DSW’s historical revenue and net income:

1377622205868.png

The company’s second quarter financials released today report:

· Reported sales increase 9.7% to $562 million; comparable sales increase 4.4%

· Adjusted EPS rises to $0.97 per share; an increase of 47% over last year.

· Reported net income was $33.7 million, or $0.73 per diluted share on 45.9 million weighted average shares outstanding.

· On Aug. 22, the Board declared a quarterly cash dividend payment of $0.25 per share.

On Aug. 5, DSW raised its full year guidance to $3.60 to $3.80 per share from the previous range of $3.40 to $3.60 per share. This updated earnings guidance assumes low single digit same store sales growth for the full year.

The Peter Lynch Chart suggests that the company is currently overvalued:

1377622238548.png

DSW has a market cap of $3.97 billion. Its shares are currently trading at around $87.77 with a P/E ratio of 28.30, a P/S ratio of 1.70 and a P/B ratio of 4.40. The company had an annual average earnings growth of 36.8% over the past five years.

There are currently six gurus that hold a stake in DSW.

Check out Steve Mandel’s second quarter portfolio here.

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Rating: 3.0/5 (6 votes)

Comments

vgm
Vgm - 1 year ago
Thanks Monica for the update.

Just to add that Mandel also increased his holding in B/E Aerospace (BEAV) at the same time as DG and DSW:

http://www.sec.gov/Archives/edgar/data/861361/000090266413003074/p13-1637sc13g.htm

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