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Thrifting for Billionaire Bargains

September 22, 2013 | About:
Sally Jones

Sally Jones

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The weekend is a great time to go thrifting for bargains, using the GuruFocus Guru Bargains feature. Here are three companies in construction, real estate and medical technology that have dropped around 18% or more since billionaires bought them in the second quarter of 2013.

PulteGroup Inc. (PHM) - Yield 0­­­.58%

PulteGroup is up 2% over 12 months. The company has a market cap of $6.65 billion; its trades with a P/E ratio of 22.90 and P/B ratio of 3.00.

Formed in 1956, PulteGroup is a publicly-held holding company engaged in the home building and financial services businesses. Its core business is the acquisition and development of land mainly for residential purposes within the continental United States and the construction of housing on its properties.

The company reported its home sale revenues at $1.2 billion for the second quarter 2013, representing a 19% increase over the same quarter a year ago. The company’s earnings for the quarter are $0.09 per share. Additionally the company has a significant backlog of $2.7 billion.

Guru Ray Dalio increased his position in the second quarter by 42.4%. He bought 181,500 shares at an average price of $20.79, for a loss of 17.7%. The current share price has dropped to $17.12, down 18% from average. His current shares are 609,589 after the trade.

His five-year history shows a gain of 40% on 924,723 shares bought at an average price of $12.25 per share. On 315,134 shares sold at an average price of $18.98, he took a loss of 10%.

Tracking historical share pricing, revenue and net income:



Annaly Capital Management (NLY) - Yield 15.09%

Annaly Capital Management is down 32% over 12 months. The company has a market cap of $11.3 billion; its trades with a P/E ratio of 3.60 and a P/B ratio of 0.90.

Incorporated in 1997, Annaly Capital Management Inc. is a real estate investment trust or REIT that owns, manages, and finances a portfolio of real estate related investments, including mortgage pass-through certificates, collateralized mortgage obligations, agency callable debentures, and other securities representing interests in or obligations backed by pools of mortgage loans.

The company reported its second quarter 2013 financials with adjusted net income of $460.6 million. It ended the quarter with a portfolio of investment securities at $95.9 billion. Two days ago, the company announced a third quarter 2013 common stock cash dividend of $0.35 per common share, payable October 31, 2013.

Guru Ray Dalio made a new buy in the second quarter of 2013. He bought 143,090 shares at an average price of $14.61, for a loss of 18.3%%. The current share price has dropped to $11.93, with a change from average down 18%. His current shares are 143,090 after the trade.

His five-year history shows only double-digit losses, bottoming out at a loss of 33.1% on 33,200 shares bought at an average price of $17.84 in the fourth quarter of 2009.

Tracking historical share pricing, revenue and net income:



Symmetry Medical Inc. (SMA) - Yield 0%

Symmetry Medical Inc. is down 15% over 12 months. The company has a market cap of $312.92 million; its trades with a P/E ratio of 42.30 and P/B ratio of 1.00.

Incorporated in 1996, Symmetry Medical Inc. provides medical device solutions, including surgical instruments, orthopedic implants, and sterilization cases and trays. The company designs, develops and offers worldwide production and supply chain capabilities for these products to customers in the orthopedic industry and other medical device markets. It also manufactures specialized non-healthcare products, mainly in the aerospace industry.

Reiterating its guidance for the year, Symmetry Medical reported its second quarter 2013 financials with net income at $1.2 million, down 30% from the same quarter a year ago. The company reported flat year-over-year revenue of $101.9 million for the second quarter.

Guru Joel Greenblatt increased his position in the second quarter by 52.08%. He bought 85,249 shares at an average price of $10.28, for a loss of 18.3%. The current share price has dropped to $8.40, with a change of average down 18%.

His current shares are 248,934 after the trade.

Greenblatt has held SMA for six quarters without a gain. His worst quarter was the first quarter of 2013, losing 22.2% on 102,328 shares bought at an average price of $10.80 per share.

Tracking historical share pricing, revenue and net income:



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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: 3.5/5 (4 votes)

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