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Richard Blum Reduces, Real-Time and Review

October 29, 2013 | About:
Sally Jones

Sally Jones

49 followers
The third quarter portfolio of Richard Blum of Blum Capital Partners shows eight stocks, none of them new, and a total value of $612 million, with a quarter-over-quarter turnover of 0%.

For most of this year, Richard Blum’s major reductions have been about methodically whittling down two very challenged education companies, ITT Educational Services (ESI) and Career Education Corporation (CECO), both of which are up over 12 months. Since the beginning of third quarter, Blum reduced his ESI position nine times putting current shares at 2,297,137. After cutting CECO 11 times in the same time period, Blum’s current shares remaining are 5,739,789.

ITT Educational Services Inc. (ESI)

As of Oct. 24, 2013, Richard Blum’s latest trade reduced ESI by 2.13%, selling shares in the average price range of $39.18. The current share price is $41.59, with a change from average up 6%.

Up 95% over 12 months, ITT Educational Services Inc. has bounced in the last few months. The company has a market cap of $976.6 million; its shares were traded at around $41.83 with a P/E ratio of 11.60 and P/S ratio of 0.84. The company does not pay a dividend.

ITT Educational Services Inc. (ESI) reported revenue of $259.4 million for the third quarter of 2013, down 17.6% from the same quarter a year ago at $314.7 million. The company’s net income is down by 55.8% for the third quarter, year-over-year, at $18.9 million, compared to $42.9 million in the third quarter of 2012. Earnings per diluted share were reported as $0.80 per share, down 56.3% from the third quarter of 2012 when EPS was reported at $1.83.

Historical tracking of share price, revenue and net income since 1995:

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Career Education Corporation (CECO)
Richard Blum last sold CECO as of Sept. 18, 2013, reducing his position by 2.78%, selling shares in the average price range of $2.70. The current share price is $5.67, with a change from average up 110%.

Career Education Corporation is up 61% over 12 months. The company has a market cap of $372.8 million; its shares were traded at around $5.48 with a P/B ratio of 0.70. The company does not pay a dividend. Career Education Corporation had an annual revenue growth of 7.60% over 10 years, and a -15.80% over 12 months. GuruFocus rated Career Education Corporation the business predictability rank of 1 out of 5 stars.

Career Education Corporation reported second quarter 2013 revenues of $294.8 million, down from revenue of $365.9 million in the same quarter of 2012. The company reported a net loss of $31.4 million for the second quarter of 2013, compared to a net loss of $100.2 million in the same quarter of 2012.

Historical tracking of share price, revenue and net income since 1998:

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Track all reductions made by Richard Blum.

Here’s a review of one more major reduction made by Richard Blum in the second quarter of 2013, making an impact on his portfolio by -1.27%.

Marriott Vacations Worldwide Corp. (VAC)

Up 30% over 12 months, Marriott Vacations Worldwide Corp.has a market cap of $1.81 billion, and trades at a P/E of 38.60 and a P/B of 1.50. The company does not pay a dividend yield.

The current VAC share price is around $50.95.

Marriott Vacations Worldwide Corporation is a developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands.

As of June 30, 2013, Richard Blum reduced his position by 74.83%, selling 195,000 shares at an average price of $44.02 per share, for a gain of 15%. Over five quarters, he has averaged a gain of 95% on 524,498 shares bought at an average price of $25.96 per share. Blum also averaged a gain of 16% on 458,900 shares bought at an average price of $43.76 per share.

Blum’s current VAC shares are 65,596.

The company reported financial results for the third quarter of 2013, with an adjusted net income of $25 million, up from $5million in the same quarter of 2012. Earnings per diluted share of $0.67 were reported for the third quarter of 2013, up from $0.12 in the same quarter a year ago.

Historical share pricing, revenue and net income:

1383079176176.png

Richard Blum is the co-founder, CEO, president and chairman of Blum Capital Partners.

Here’s the latest summary of Richard Blum’s top buys, top sells, and top holdings.



Here is the complete portfolio of Richard Blum.

Be sure to read:

1. Richard Blum's Undervalued Stocks

2. Richard Blum's Top Growth Companies

3. Richard Blum's High Yield stocks

4. Stocks that Richard Blum keeps buying

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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.

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)

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