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Gurus Love Losers - S&P’s ‘Biggest Losers’

November 05, 2013 | About:
Sally Jones

Sally Jones

49 followers
Down 44% over 12 months, gold producer Newmont Mining Corporation (NEM) has received much recent coverage for its down position, and for being one of the "biggest losers" in the S&P500 index. Here’s a look at two more losing rivals who also dig in the dirt for coal and iron: Over 12 months, Peabody Energy Corporation (BTU) is down 29% and Cliffs Natural Resources Inc. (CLF) is down 25%, but groups of billionaires are holding the S&P500’s "Biggest Losers" and insiders are trading.

Peabody Energy Corporation (BTU)

Down 29% over 12 months, Peabody Energy Corporation has a market cap of $5.54 billion; its shares were traded at around $20.54. The P/B ratio is 1.20. The dividend yield is 1.70%.

Incorporated in 1998, Peabody Energy Corporation is a private-sector coal company and it owns interests in 30 coal mining operations, including a majority interest in 29 coal operations located in the U.S. and Australia.

The company reported financial results for the third quarter of 2013 with revenue of $1.80 billion down from $2.06 billion in the same quarter of last year. Income from continuing operations was $24 million, down from $122.9 million in the same quarter of 2012. Third quarter adjusted EBITDA was $312 million. Earnings per diluted share for the quarter were $0.06.

Historical share pricing, revenue and net income:

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Guru Action: As of Sept. 30, 2013, there are 10 guru stakeholders and two recent insider sells.

As of Sept. 30, 2013, the top guru stakeholder is Manning & Napier Advisors Inc. with current shares of 9,906,557 or 3.67% of shares outstanding. The firm increased its position by 43.79% in the third quarter of 2013, buying 3,016,787 shares at an average price of $17.05, gaining 20.5%.

Holding for two quarters, the firm gained 11% on 9,906,557 shares bought at an average price of $18.52 per share.

Cliffs Natural Resources Inc. (CLF)

Down 25% over 12 months, Cliffs Natural Resources Inc. has a market cap of $4.36 billion; its shares were traded at around $28.50. The P/B ratio is 0.90. The dividend yield is 3.80%.

Founded in 1847, Cliffs Natural Resources Inc. is a global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. The company's operations are organized according to geography and product category: North American Iron Ore, North American Coal, Asia Pacific Iron Ore, Asia Pacific Coal and Latin American Iron Ore. In North America, the company operates six iron ore mines in Michigan, Minnesota and Eastern Canada, and two coking coal mining complexes located in West Virginia and Alabama.

The company reported financial results for the second quarter of 2013 with revenues down by 6% at $1.5 billion, marking a declining of $91 million from the same quarter of 2012. The company’s consolidated sales margin was down 40% at $268 million, compared to the same quarter a year ago at $443 million. For the quarter, the company’s operating income was $262 million, down 28% from the same quarter a year ago.

Joseph Carrabba, Cliffs Natural Resources president and CEO commented in a company press release: “During the quarter, I'm pleased to report we paid down debt by $110 million and made meaningful progress in lowering our SG&A and exploration expenses. Our U.S. Iron Ore, Asia Pacific Iron Ore, and North American Coal segments once again delivered strong operational performances. Looking at the remainder of the year, we also have a positive outlook for these segments. In Eastern Canadian Iron Ore, the team remains steadfast in their efforts to improve the stability of the operations.”

Historical share pricing, revenue and net income:

1383677050050.png

Guru Action: As of Sept. 30, 2013, there are six guru stakeholders and active insider trading.

The top guru stakeholder is Brian Rogers with current shares of 1,962,900 shares or 1.28% of shares outstanding after he reduced his position by 9.25%, as of June 30, 2013. He sold 200,000 shares at an average price of $20.57, for a gain of 38.6%.

In three quarters of trading, Brian Rogers had a loss of 32% on 2,750,000 shares at an average price of $42.08 per share. He also had a loss of 11% on 787,100 shares sold at an average price of $32.12 per share.



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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: 3.0/5 (3 votes)

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