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Tobacco and Gold - Seth Klarman’s Stocks Near 52-Week Low

October 13, 2013 | About:
Sally Jones

Sally Jones

49 followers
The portfolio of Seth Klarman, author, value investor extraordinaire and portfolio manager of The Baupost Group, currently shows 24 stocks, five of them new, and a total value of $4.02 billion. His quarter-over-quarter turnover is 22%.

Here are two stocks held by Seth Klarman, a tobacco leaf company and a gold mine, both popular with billionaire investors and both hovering above a 52-week low.

Alliance One International Inc. (AOI)

Predictability: 1 out of 5 Stars

Down 12% over 12 months, Alliance One International Inc. has a market cap of $251.53 million; its shares were traded at around $2.86, which is 2.4% above its 52-week low. The P/E ratio is 65.10, and the P/B ratio is 0.80.

Alliance One is a tobacco leaf supplier serving the world's largest cigarette manufacturers. The company purchases, processes, packs, stores and ships tobacco to manufacturers of cigarettes and other consumer tobacco products throughout the world. Alliance One deals mainly in tobacco types used in international brand cigarettes. As a tobacco leaf merchant, Alliance One purchases tobacco grown in over 45 countries and serves cigarette manufacturers in over 90 countries.

The company reported financial results for the quarter ended June 30, 2013, with a net loss of $36.9 million, down further from a net loss in the same quarter last year of 30.7 million. The net loss translates to $(0.42) per basic share for the reporting quarter.

Historical share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, Seth Klarman holds 7,669,969 shares, valued at $29.14 million, and weighting his portfolio at 0.72%. In the second quarter, he sold 461,625 shares at an average price of $3.74 for a loss of 23.5%.

In six quarters of double-digit losses, Klarman has averaged a loss of 31% on 5,800,000 shares bought at an average price of $4.17 per share. He has averaged a loss of 38% on 1,798,473 shares sold at an average price of $4.59 per share.

Seth Klarman is one of six gurus holding AOI as of June 30, 2013, and there is recent insider trading.

Kinross Gold Corporation (KGC)


Predictability: 1 out of 5 Stars

Down 54% over 12 months, Kinross Gold Corporation has a market cap of $5.32 billion; its shares were traded at around $4.66, 2.8% above its 52-week low. The P/B ratio is 0.80. The dividend yield is 3.44%.

Kinross Gold Corporation is a Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ghana, Mauritania, Russia and the U.S. The company is engaged in the mining and processing of gold, and silver ore as a by-product. The company explores and acquires gold-bearing properties in the Americas, the Russian Federation and worldwide. The company produces gold and silver doré, a semi-pure alloy. The alloy is shipped to refineries for final processing.

The company reported revenue of $968 million for the second quarter of 2013, down from $1,005.6 million in the same quarter of 2012, but the reported net loss for the quarter is $2.48 billion, compared to net earnings of $113.9 million in the second quarter of 2012. Gold production was up at 655,381 gold equivalent ounces, compared to 632,772 ounces in the same quarter year over year.

Historical share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, Seth Klarman holds 2,102,700 shares, valued at $10.72 million, and weighting his portfolio at 0.27%. In the second quarter, he made a new buy, picking up 2,102,700 shares at an average price of $5.82 for a loss of 19.9%.

Check out the numerous gurus holding KGC and very active insider trading.

Here is the complete portfolio of Seth Klarman.



Be sure to read:

1. Seth Klarman's Undervalued Stocks

2. Seth Klarman's Top Growth Companies

3. Seth Klarman's High Yield stocks

4. Stocks that Seth Klarman keeps buying

GuruFocus Real Time Picksreports 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: 3.8/5 (5 votes)

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