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Drill Down on Dreman - Five Sold Out

September 20, 2013 | About:
Sally Jones

Sally Jones

49 followers
Guru David Dreman is considered the pioneer in contrarian investment strategies and behavioral finance. His Dreman Value Management LLC is a leading investment management firm that uses a unique contrarian investment philosophy and the disciplined low P/E investment approach established by David Dreman over 30 years ago. The firm uses a disciplined, bottom-up, low P/E approach, investing in companies that demonstrate strong fundamentals and historical earnings growth. Dreman has averaged returns of 14.9% over 12 months, according to the GuruFocus Score Board of Gurus. His portfolio update lists 310 stocks, 13 of them new, with a total value of $3.5 billion and a quarter-over-quarter turnover of 0%.

GuruFocus previously reported Dreman’s highest impact decreases, as of June 30, 2013. Today’s report is a drill-down on five more companies Dreman sold out in the second quarter of 2013.

Amkor Technology Inc. (AMKR)

Impacts Portfolio: 0.13%

Down 7% over 12 months, Amkor Technology Inc. has a market cap of $934.6 million; its shares were traded at around $4.31 with a P/E ratio of 12.10.

Formed in 1997, Amkor Technology Inc. is a provider of outsourced semiconductor packaging or assembly and test services. The company is engaged in designing and developing new packaging and test technologies in a broad portfolio. The company has production capabilities at various facilities throughout China, Japan, Korea, the Philippines, Taiwan and the U.S.

Guru Action: As of June 30, 2013, David Dreman sold out his holding, unloading 1,197,032 shares at an average price of $4.22, for a gain of 1.9%. He held AMKR for 10 quarters, gaining slightly in only two of them.

Tracking share price, revenue and net income:

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DFC Global Corp. (DLLR)

Impacts Portfolio: 0.2%

Down 33% over 12 months, DFC Global Corp. has a market cap of $476.2 million; its shares were traded at around $12.08 with a P/E ratio of 10.50.

Formed in 1990, DFC Global Corp. is a non-bank provider of alternative financial services, unsecured short term consumer loans, secured pawn loans, check cashing, gold buying, money transfers and reloadable prepaid debit cards, serving unbanked and under-banked consumers. The company has over 1,500 current retail storefront locations and multiple Internet platforms in ten countries across Europe and North America, the United Kingdom, Canada, the U.S., Sweden, Finland, Poland, Spain, Romania, the Czech Republic and the Republic of Ireland.

Guru Action: As of June 30, 2013, David Dreman sold out his holding, unloading 450,362 shares at an average price of $14.44, for a loss of 16.1%. Dreman held for only two quarters, and took a 35% loss in the previous quarter on a new buy of 450,362 shares at an average price of $18.62 per share.

Tracking share price, revenue and net income:

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Global Cash Access Holdings Inc. (GCA)

Impacts Portfolio: 0.16%

Down 5% over 12 months, Global Cash Access Holdings Inc. has a market cap of $513.3 million; its shares were traded at around $57.87 with a P/E ratio of 22.20.

Global Cash Access Holdings Inc. is a global provider of cash access services and related equipment and services to the gaming industry. The company's services and solutions provide gaming establishment patrons access to cash through a variety of methods, including automated teller machine (ATM) cash withdrawals, credit card cash access transactions, point-of-sale debit card transactions, check verification and warranty services and money transfers. The company also provides products and services that improve credit decision-making, automate cashier operations and enhance patron marketing activities for gaming establishments.

Guru Action: As of June 30, 2013, David Dreman sold out his holding, unloading 836,263 shares at an average price of $6.80, for a gain of 15.4%. Dreman held for only two quarters, and made a gain of 5.9% in the previous quarter on a new buy of 836,263 shares at an average price of $7.41 per share.

Tracking share price, revenue and net income:

1379631101593.png

Ascena Retail Group (ASNA)

Impacts Portfolio: 0.37%

Down 20% over 12 months, Ascena Retail Group Inc. has a market cap of $2.72 billion; its shares were traded at around $17.08 with a P/E ratio of 22.30.

Through its subsidiaries, Ascena Retail Group Inc. operates as a specialty retailer of apparel for women and "tween" girls. The company offers apparel, accessories, footwear and lifestyle products, such as bedroom furnishings and electronics. Its main retail brands include: Justice, Lane Bryant, Maurices, Dressbarn and Catherines. The company operates approximately 3,800 stores throughout the U.S., Puerto Rico and Canada.

Guru Action: As of June 30, 2013, Dreman sold out his holding, unloading 756,073 shares at an average price of $18.58, for a loss of 8.3%. Dreman held for nine quarters, and took a loss six of them.

His highest gain was 20.3% in the fourth quarter of 2011 when he bought 69,178 shares at an average price of $14.16 per share.

Thomas Reuters Corp. (TRI)

Impacts Portfolio: 0.07%

Up 19% over 12 months, Thomson Reuters Corporation has a market cap of $29.17 billion; its shares were traded at around $35.07 with a P/E ratio of 28.00.

Incorporated in Ontario in 1977, Thomson Reuters Corporation is a source of valuable information for the world's businesses and professionals. The company's divisions include financial and risk, legal, tax and accounting, and intellectual property and science.

Guru Action: As of June 30, 2013, David Dreman sold out his holding, unloading 81,254 shares at an average price of $33.33, for a gain of 5.5%. Dreman held for seven quarters, with gains in every quarter. His new buy of 11,060 shares in the fourth quarter of 2011 made a gain of $27.2 when he bought at an average price of $27.63 per share.

His holding history:

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David Dreman is the founder and chairman of Dreman Value Management LLC, and he serves as the firm's chief investment officer. Dreman has been a columnist for Forbes for 30 years.

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

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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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: 3.7/5 (3 votes)

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