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X Marks the Spot in Billionaire Portfolios

November 06, 2013 | About:
Sally Jones

Sally Jones

47 followers
Movie hero Indiana Jones once told his archaeology students that X never marks the spot on the treasure map. But recent trading shows that stocks with the x factor, namely XRS and EXAR, do have a place in the portfolios of numerous billionaires, including Chase Coleman of Tiger Global Management and George Soros of Soros Fund Management. XRS and EXAR are both showing positive signs in the third quarter: TAL Education Group’s net income for the quarter is up 45.4%. With the acquisition of Cadeka Microcircuits, Exar Corporation’s income is up 80%.

Here are the most recent company financials and a few guru trading highlights.

STOCK TICKER: XRS

Up 102% over 12 months, TAL Education Group (XRS) has a market cap of $1.45 billion; its shares were traded at around $18.62 with a P/E ratio of 40.30. The dividend is 2.60%.

Based in China, TAL Education Group is a K-12 after-school tutoring service provider. The company delivers tutoring services through small classes, personalized premium services and online course offerings.

TAL Education Group reported its unaudited financial results for the second quarter of fiscal year 2014, the quarter ending August 31, 2013, with net revenue increased 35.1% year-over-year, at $92 million for the quarter, up from $68.1 million in the same quarter a year ago. The company’s net income of $23.3 million was up 45.4% over the same quarter of the previous year at $16 million. Earnings per basic and diluted share (American Depository Share) for the quarter were reported at $0.30 and $0.29, respectively. The company has around 255 learning centers.

Guru Action: As of Sept. 18, 2013, chase Coleman increased his position by 51.68%, buying shares in the average price range of $13.01. He reduced his position by 10.62% as of Sept. 26, and again by 17.82% as of October 15, 2013. In his latest reduction, Chase Coleman sold in the average price range of $14.93, making an impact on his portfolio by -0.53%. The current price is 18.63, with a change from average up 25%.

In six quarters of holding, he averaged a gain of 69% on 11,590,800 shares at an average price of $11.04 per share. He also gained 103% selling 4,140,800 shares at an average price of $9.18 per share in the same time period. His current shares are 8,300,000 or 10.63% of shares outstanding.

Check out three more guru stakeholders, two of whom increased their positions in the second quarter of 2013.

There is no XRS insider trading found.

Track historical pricing, revenue and net income:

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STOCK TICKER: EXAR

Up 41% over 12 months, Exar Corporation (EXAR) has a market cap of $559.4 million; its shares were traded at around $11.76 with a P/E ratio of 122.40. The company does not pay a dividend.

First incorporated in 1971, Exar Corporation designs, develops and markets high performance analog mixed-signal integrated circuits and sub-system solutions for markets in networking and storage, industrial and embedded systems, and communications infrastructure. The company’s product portfolio includes power management and connectivity components, communications products, and data compression and storage solutions.

The company reported financial results for its second quarter of fiscal year 2014, ended September 29, 2013, with a net income of $6.5 million, up from $0.3 million in the same quarter a year ago. Earnings per fully diluted share were reported as $0.13, up from $0.01 in the same quarter a year ago. Quarterly revenue was $34 million, up 11% from the same quarter of last year. Net sales for the quarter were $34 million, up from $30.6 million in the same quarter of the previous year.

Exar’s president and CEO, Louis DiNardo commented on the quarter’s performance in a company press release: “We are pleased with our performance in the second quarter of fiscal year 2014 as revenue grew nicely both sequentially and year-over-year. During the quarter we absorbed the acquisition of Cadeka Microcircuits and delivered solid non-GAAP net income growth of 7% sequentially and 80% versus the same quarter a year ago.”

Guru Action: After a string of reductions in 2013, 10% owner George Soros of Soros Management Fund averaged a gain of 77% buying 6,666,666 shares at an average price of $6.64. Selling 409,087 shares at an average price of $9.01, he gained 31%.

Chuck Royce also has a history of remarkable gains with EXAR. As of June 30, 2013, he increased his position by 10.52%, buying 236,787 shares at an average price of $10.96 per share for a gain of 7.3%. Overall, he has averaged a gain of 47% buying 1,868,241 shares at an average price of $8.00 per share. Selling 3,016,968 shares at an average price of $6.99, he gained 68%.

Check out the three guru stakeholders and very active insider selling.

Track historical pricing, revenue and net income:

1383762697295.png

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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: 2.8/5 (5 votes)

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