The updated portfolio of value investor Alan Fournier, fund manager of Pennant Capital Management, lists 46 stocks, eight of them new. His portfolio has a total value of $5.57 billion, with a quarter-over-quarter turnover of 15%. Pennant Capital currently invests in technology with a sector weighting of 26.3%, consumer cyclical at 25.3%, healthcare at 8.9% and financial services at 6.8%.
Here’s a review of four companies Alan Fournier sold out in the second quarter of 2013, starting with his Qualcomm Inc. sell, making a 3.7% impact on his portfolio.
Qualcomm Inc. (QCOM, Financial): Sold Out
Up 8% over 12 months, Qualcomm Inc. has a market cap of $119.15 billion; its shares were traded at around $69.61 with a P/E ratio of 18.40.
Qualcomm Inc. develops designs, manufactures and markets digital wireless telecommunications products and services.
Reporting strong financial results for the third quarter of fiscal 2013 ended June 30, 2013, Qualcomm’s net income is up 31% at $1.58 billion, year over year. Compared to the same quarter a year ago, company revenue is up 35% at $6.24 billion.
Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, commented in a company press release: “This quarter, we continued our technology leadership, with our Snapdragon 800 processor powering the world's first LTE-Advanced smartphone. W333333e see expanding opportunities for growth of 3G/4G devices around the globe, driven by the strong pace of innovation in the industry.”
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 2,838,154 shares at an average price of $63.80, for a gain of 8.9%. His five-year history shows a gain in every quarter. Check out this remarkable trading history of pure gains:
Track historical share pricing, revenue and net income:
PBF Energy Inc. (PBF, Financial): Sold Out
Down 16% over 12 months, PBF Energy Inc. has a market cap of $877.1 million; its shares were traded at around $22.25 with a P/E ratio of 20.30.
Incorporated in 2011, PBF Energy Inc. is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The company currently owns and operates three refineries in Delaware, New Jersey and Ohio. PBF Energy produces a variety of products at each of its refineries, including gasoline, heating oil, jet fuel, lubricants, petrochemicals, asphalt and others.
PBF Energy Inc. reported its second quarter 2013 operating income of $133 million, down from $579.5 million for the same quarter a year ago. Net income for the second quarter 2013 was $71.5 million, down from $336.2 million for the same quarter in 2012. The company’s net income for the second quarter of 2013 was $16.8 million.
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 540,000 shares at an average price of $29.73, for a loss 25.5%. He made a new buys of these shares in the previous quarter, losing 20.5% when he bought at an average price of $27.87.
Track historical share pricing, revenue and net income:
Pfizer Inc. (PFE, Financial): Sold Out
Up 18% over 12 months, Pfizer Inc. has a market cap of $191.99 billion; its shares were traded at around $28.97 with a P/E ratio of 7.80.
Founded in 1849, Pfizer is a global pharmaceutical firm which develops and produces medicines and vaccines for a range of conditions in a variety of fields, including immunology, inflammation, oncology, cardiovascular diseases, metabolic diseases, neuroscience and pain.
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 1,506,574 shares at an average price of $29.12, for a loss of 0.4%, the first loss in a five-year history of pure gains. His highest gaining quarter was the second quarter of 2009 when he bought 14,478 shares at an average price of $14.31 for a gain of 102.7%.
Track historical share pricing, revenue and net income:
Valero Energy Corporation (VLO, Financial): Sold Out
Up 19% over 12 months, Valero Energy Corporation has a market cap of $18.8 billion; its shares were traded at around $34.56 with a P/E ratio of 6.80.
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 599,007 shares at an average price of $38.10, for a loss of 9%. This is only the second losing quarter in a five-year history of otherwise remarkable gains:
Track historical share pricing, revenue and net income:
Alan Fournier is known for his ability to blend the micro view with the macro view.
Study the rest of Alan Fournier’s trades.
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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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Here’s a review of four companies Alan Fournier sold out in the second quarter of 2013, starting with his Qualcomm Inc. sell, making a 3.7% impact on his portfolio.
Qualcomm Inc. (QCOM, Financial): Sold Out
Up 8% over 12 months, Qualcomm Inc. has a market cap of $119.15 billion; its shares were traded at around $69.61 with a P/E ratio of 18.40.
Qualcomm Inc. develops designs, manufactures and markets digital wireless telecommunications products and services.
Reporting strong financial results for the third quarter of fiscal 2013 ended June 30, 2013, Qualcomm’s net income is up 31% at $1.58 billion, year over year. Compared to the same quarter a year ago, company revenue is up 35% at $6.24 billion.
Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, commented in a company press release: “This quarter, we continued our technology leadership, with our Snapdragon 800 processor powering the world's first LTE-Advanced smartphone. W333333e see expanding opportunities for growth of 3G/4G devices around the globe, driven by the strong pace of innovation in the industry.”
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 2,838,154 shares at an average price of $63.80, for a gain of 8.9%. His five-year history shows a gain in every quarter. Check out this remarkable trading history of pure gains:
Track historical share pricing, revenue and net income:
PBF Energy Inc. (PBF, Financial): Sold Out
Down 16% over 12 months, PBF Energy Inc. has a market cap of $877.1 million; its shares were traded at around $22.25 with a P/E ratio of 20.30.
Incorporated in 2011, PBF Energy Inc. is an independent petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The company currently owns and operates three refineries in Delaware, New Jersey and Ohio. PBF Energy produces a variety of products at each of its refineries, including gasoline, heating oil, jet fuel, lubricants, petrochemicals, asphalt and others.
PBF Energy Inc. reported its second quarter 2013 operating income of $133 million, down from $579.5 million for the same quarter a year ago. Net income for the second quarter 2013 was $71.5 million, down from $336.2 million for the same quarter in 2012. The company’s net income for the second quarter of 2013 was $16.8 million.
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 540,000 shares at an average price of $29.73, for a loss 25.5%. He made a new buys of these shares in the previous quarter, losing 20.5% when he bought at an average price of $27.87.
Track historical share pricing, revenue and net income:
Pfizer Inc. (PFE, Financial): Sold Out
Up 18% over 12 months, Pfizer Inc. has a market cap of $191.99 billion; its shares were traded at around $28.97 with a P/E ratio of 7.80.
Founded in 1849, Pfizer is a global pharmaceutical firm which develops and produces medicines and vaccines for a range of conditions in a variety of fields, including immunology, inflammation, oncology, cardiovascular diseases, metabolic diseases, neuroscience and pain.
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 1,506,574 shares at an average price of $29.12, for a loss of 0.4%, the first loss in a five-year history of pure gains. His highest gaining quarter was the second quarter of 2009 when he bought 14,478 shares at an average price of $14.31 for a gain of 102.7%.
Track historical share pricing, revenue and net income:
Valero Energy Corporation (VLO, Financial): Sold Out
Up 19% over 12 months, Valero Energy Corporation has a market cap of $18.8 billion; its shares were traded at around $34.56 with a P/E ratio of 6.80.
Guru Action: As of June 30, 2013, Alan Fournier sold out his position, selling 599,007 shares at an average price of $38.10, for a loss of 9%. This is only the second losing quarter in a five-year history of otherwise remarkable gains:
Track historical share pricing, revenue and net income:
Alan Fournier is known for his ability to blend the micro view with the macro view.
Study the rest of Alan Fournier’s trades.
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.
If you are not a Premium Member, we invite you for a 7-day Free Trial.
