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Thrifting for Billionaire Bargains 47% Off or More Since Gurus Bought

October 21, 2013 | About:
Sally Jones

Sally Jones

49 followers
Thrifting for billionaire-qualified buys can provide some level of assurance and indicate a probability that these companies could be finds.

The GuruFocus Guru Bargains feature reveals that these four stocks are 47% or more off since a number of billionaires bought them in the second quarter of 2013. Consider the value of knowing that the following billionaires remain invested in these stocks even after taking the sting.

Incorporated in 2012 with the merger of Dex One Corporation and SuperMedia Inc., Dex Media Inc. (DXM) had four billionaire investors making new buys in the second quarter of 2013. Here is an update on the Internet marketing solutions provider, and three more companies that are way down since billionaires last bought them.

Dex Media Inc. (DXM) - Yield 0.00%

Dex Media Inc. is down 42% over 12 months. The current share price is around $6.92, down 61% since John Paulson bought a new holding of 2,231,132 shares at around $17.63 per share, taking a loss of 62.5%, as of June 30, 2013.

His current shares are 2,231,132.

Dex Media Inc. is a provider of social, local and mobile marketing solutions that include websites, print, mobile, search engine and social media solutions for businesses.

The company has a market cap of $114.4 million; shares trade with an EV-to-EBIT of 83.30.

The company reported financial results for the second quarter of 2013 with a net loss of $68 million, improved from a net loss of $127 million in the same quarter of 2012. Company revenue is at $345 million for the second quarter of 2013, compared to $633 million in the same quarter a year ago.

Tracking historical share pricing since May 2013:

1382377160722.png

John Paulson is one of four gurus who made new buys of DXM in the second quarter and there is recent insider trading to report.

Homex Development Corp. (HXM) - Yield 0.00%

Homex Development Corp. is down 88% over 12 months. The current share price is $1.66, down 69% since Charles Brandes increased his position by 99.33% as of June 30, 2013.

He bought 369,119 shares at an average price of $5.39 per share, taking a loss of 69.6%. In his three quarters of buying a total of 794,929 shares at an average price of $9.08 per share, he has averaged a loss of 82%.

His current shares are 794,929.

Registered in Mexico in1998, Homex Development Corp. is an integrated home development company engaged in the development, construction and sale of affordable entry-level, middle-income and tourism housing in Mexico. The company also builds affordable entry-level housing in Brazil.

The company has a market cap of $90.4 million; its trades with a P/B ratio of 0.20.

Tracking historical share pricing, revenue and net income:

1382377924472.png

As of the second quarter of 2013, there are five gurus holding HXM. There is no insider activity found.

Primus Telecommunications Group Inc. (PTGI) - Yield 0.00%

Primus Telecommunications Group Inc. is down 75% over 12 months. The current share price is $3.62, down 70% since Mario Gabelli increased his position by 72.41% as of June 30, 2013.

He bought 21,000 shares at an average price of $11.88 per share, for a loss of 69.5%. He has held for two quarters, taking a loss of 68% on a total of 50,000 shares bought at an average price of $11.46.

His current shares are 50,000.

Incorporated in 1994, Primus Telecommunications Group Inc. is an integrated, facilities-based communications services provider offering a portfolio of international and domestic voice, wireless, Internet, VoIP, data, co-location and data center services to customers located mainly in Australia, Canada, and the U.S. The company’s main markets are Australia and Canada, where it has significant network infrastructure.

The company has a market cap of $51.2 million; its trades with a P/E ratio of 0.50 and a P/B ratio of 0.30.

Tracking historical share pricing, revenue and net income:

1382378426940.png

Check out three more gurus holding PTGI. There is no recent insider activity found.

NuPathe Inc. (PATH) - Yield 0.00%

NuPathe Inc. is down 53% over 12 months. The current share price is $1.70, down 47% since Ronald Muhlenkamp made a new buy as of June 30, 2013.

He bought 11,000 shares at an average price of $3.22 for a loss of 48.1%.

His current shares are 11,000.

Incorporated in 2005, NuPathe Inc. is a biopharmaceutical company that develops and commercializes branded therapeutics for diseases of the central nervous system, including neurological and psychiatric disorders.

The company has a market cap of $52.3 million; shares trade with a P/B ratio of 3.80.

Tracking historical share pricing, revenue and net income:

1382378692555.png

As of the second quarter of 2013, Ronald Muhlenkamp is one of two gurus holding PATH. There is no recent insider activity to report.



Check out the GuruFocus Guru Bargains feature to discover more stocks priced at around 20% off or more since billionaires last bought.

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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: 4.5/5 (2 votes)

Comments

superguru
Superguru - 10 months ago
Why do you think these are guru bargains and not guru mistakes?

Couple of lines to justify that these are actually bargains and not mistakes would be great addition to this useful series of articles.
Sally Jones
Sally Jones - 10 months ago
Thanks very much. I appreciate the feedback.

Please leave your comment:


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