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Bargain Hunting with Phenom Michael Price for 52-Week Lows

November 06, 2013 | About:
Sally Jones

Sally Jones

47 followers
Guru Michael Price of MFP Investors LLC is a self-made investing phenom averaging a 12-month return of 84.84%. Over 12 months, Price is the fourth highest returning guru, following John Paulson at 296.45%, Michael Dell at 270.13% and Robert Karr at 89.84%.

From a bargain hunter’s perspective, here are three companies held by Michael Price that are near a 52-week low. These companies were also screened for yield, starting with Teva Pharmaceutical Industries with a yield of 2.80%.

Teva Pharmaceutical Industries Ltd. (TEVA)

Current Shares: 350,000

Value: $13.7 million

Down 10% over 12 months, Teva Pharmaceutical Industries Ltd. has a market cap of $31.24 billion; its shares were traded at around $36.97 with a P/E ratio of 26.00. TEVA is 1.6% above a 52-week low.

The dividend yield is 2.80%.

Based in Israel, Teva Pharmaceutical Industries Ltd develops, produces and markets generic, branded and over-the-counter medicines. Some of its products are Copaxone, Azilect and Provigil.

A GuruFocus news alert shows a legal problem arising for Teva Pharmaceutical. The law firm of Wohl & Fruchter LLP is investigating possible violations of federal securities laws by officers and directors of Teva Pharmaceutical Industries Limited (TEVA), as of November 1st. The company reported financial results for the third quarter of 2013 with net revenue of $5.1 billion, and earnings per diluted share (GAAP) at $0.84. The company expects its net revenue for the full year to come in between $19.7 billion and $20.3 billion.

Guru Action: As of June 30, 2013, Michael Price took a loss of 9% on his holding of 350,000 shares bought at an average price of $40.06 per share, averaged over three losing quarters. He first bought 100,000 shares in the third quarter of 2012 at an average price of $40.44 per share for a loss of 9.5%.

Track historical TEVA pricing and net income:

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National Presto Industries (NPK)

Current Shares: 96,924

Value: $6.98 million

Down 8% over 12 months, National Presto Industries has a market cap of $488.9 million; its shares were traded at around $70.57 with a P/E of 13.50 and a P/B ratio of 1.70. NPK is 4.6% above a 52-week low.

The dividend yield is 1.40%.

National Presto Industries operates in three business segments: Housewares/Small Appliances, Defense Products, and Absorbent Products. The company is known for its pressure cookers and canners as well as its line of electric skillets and cookers.

Guru Action: As of June 30, 2013, Michael Price took a loss of 7.2% on his holding of 96,924 shares bought at an average price of $76.01 per share. He first bought the shares in the second quarter of 2012 at an average price of $69.99 per share for a gain of 0.8%.

Between the two quarters of trading, he averaged a gain of 1% on 96,924 shares bought at an average price of $69.99 per share.

Track historical pricing, revenue and net income:

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Read more about NPK and other manufacturers.

OmniAmerican Bancorp Inc. (OABC)

Current Shares: 550,000

Value: $12.1 million

Down 4% over 12 months, OmniAmerican Bancorp Inc. has a market cap of $252.5 million; its shares were traded at around $22.05 with a P/E of 39.30 and a P/B ratio of 1.20. OABC is 4% above a 52-week low.

The company does not pay a dividend.

OmniAmerican Bancorp Inc. is a federally chartered savings bank headquartered in Fort Worth, Texas. The company owns all of the outstanding shares of common stock of OmniAmerican Bank. The bank's principal business consists mainly of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans secured by residential real estate, consumer loans, consisting of indirect automobile loans and to a lesser extent, commercial real estate, commercial business loans, real estate construction, and direct automobile loans. The company also invests in government-sponsored mortgage-backed securities and government-sponsored collateralized mortgage obligations, as well as equity securities.

Guru Action: As of June 30, 2013, Michael Price increased his position by 83.33% and took a loss of 6.7% on his buy of 250,000 shares at an average price of $23.63 per share. He first bought 300,000 shares in the second quarter of 2010 at an average price of $11.61 per share for a gain of 89.9%.

Overall, he has averaged a gain of 29% on 550,000 shares bought at an average price of $17.07 per share.

Check out the recent insider trade.

Track historical pricing, revenue and net income:

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Here’s a graphic summary of Michael Price’s trading and holdings:



Read more about the complete portfolio of Michael Price, MFP Investors LLC.

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Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

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: 3.0/5 (2 votes)

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