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John Hussman's Third Quarter Top 5

Monica Wolfe

Monica Wolfe

99 followers
Over the third quarter, Guru John Hussman of the Hussman Economtrics Advisors purchased 27 new stocks over the quarter. With these new additions the guru holds on to a portfolio of 207 stocks valued at $1.82 billion.

The following five companies represent Hussman’s top five stock holdings.

Jack in the Box (JACK)

Hussman’s largest position is in the fast food restaurant chain Jack in the Box. The guru holds on to 757,000 shares of JACK, representing 1.7% of his total portfolio and 1.75% of the company’s shares outstanding.

During the third quarter Hussman reduced his position -8.24% by selling 68,000 shares of the company’s stock. He sold these shares in the price range of $38.75 to $42.30, with an estimated average quarterly price of $40.28. Since then the price per share is up about 5.3%.

Hussman’s historical holding history:



Jack in the Box is a fast-food chain restaurant. The company operates and franchises more than 2,800 Jack in the Box quick-service restaurants and Q’doba Mexican Grill fast-casual restaurants.

Jack in the Box’s historical revenue and net income:



The analysis on Jack in the Box reports that the company’s revenue has been in decline over the past five years, its price is near a 10-year high and it has issued $51.727 million over the past three years.

The top guru shareholders of Jack in the Box:

1. John Hussman: 757,000 shares, representing 1.75% of the company’s shares outstanding and 1.7% of his total portfolio.

2. Jim Simons: 192,900 shares, representing 0.45% of the company’s shares outstanding and 0.02% of his total portfolio.

3. Joel Greenblatt: 35,122 shares, representing 0.08% of the company’s shares outstanding and 0.06% of his total assets managed.

The Peter Lynch Chart suggests that Jack in the Box is currently overvalued:



Jack in the Box has a market cap of $1.83 billion. Its shares are currently trading at around $42.16 with a P/E ratio of 46.20, a P/S ratio of 1.20 and a P/B ratio of 4.50. The company had an annual average earnings growth of 6.20% over the past ten years.

Cheesecake Factory (CAKE)

The guru’s second largest holding is in Cheesecake Factory where he holds on to 642,000 shares of the company’s stock. His position in the company represents 1.6% of his total portfolio and 1.19% of the company’s shares outstanding.

During the third quarter Hussman reduced his position -19.75% by selling 158,000 shares of the company’s stock. He sold these shares in the price range of $40.80 to $44.65, with an estimated average quarterly price of $43.07. Since then the price per share has increased about 12.3%.

Since Hussman bought in to the company in the second quarter of 2009 he has seen average gains of 177% on shares bought.

The guru’s holding history as of the third quarter:



Cheesecake Factory Inc. is a restaurant holding company which owns, operates and manages upscale, casual dining and full-service restaurants under the brands of The Cheesecake Factor, Grand Lux Café and RockSugar Pan Asian Kitchen.

Cheesecake Factory’s historical revenue and net income:



The analysis on Cheesecake Factory reports that the company’s price is at a 10-year high, it has no debt, its operating margin is expanding and it has shown predictable revenue and earnings growth.

The top guru shareholders of Cheesecake Factory:

1. Ron Baron: 1,650,000 shares, representing 3.06% of the company’s shares outstanding and 0.36% of his total portfolio.

2. Mario Gabelli: 1,138,128 shares, representing 2.11% of the company’s shares outstanding and 0.3% of his total portfolio.

3. John Hussman: 642,000 shares, representing 1.19% of the company’s shares outstanding and 1.6% of his assets managed.

The Peter Lynch Chart suggests that the company is currently overvalued:



Cheesecake Factory has a market cap of $2.58 billion. Its shares are currently trading at around $47.96 with a P/E ratio of 25.40 and a P/S ratio of 1.4. The company had an annual average earnings growth of 10.90% over the past ten years.

GuruFocus rated Cheesecake Factory the business predictability rank of 4-star.

United Therapeutics (UTHR)

United Therapeutics is Hussman’s third largest holding. The guru owns 358,000 shares of UTHR, representing 1.6% of his total portfolio and 0.72% of the company’s shares outstanding.

During the third quarter Hussman reduced his holdings by -23.5%. The guru sold 110,000 shares in the third quarter price range of $66.10 to $79.58, with an estimated average quarterly price of $73.09. Since then the price per share has jumped up approximately 22%.

The guru has held on to United Therapeutics since 2012Q3, and has since then seen average gains of approximately 63%.

Hussman’s historical holding history:



United Therapeutics is a biotechnology company, which is focused on the development and commercialization of products to address the medical needs of patients with chronic and life-threatening conditions. The company operates two business segments: pharmaceuticals and telemedicine.

United Therapeutics’ historical revenue and net income:



The analysis on United Therapeutics reports that the company’s price is nearing a 10-year high. It also reports that it has a high Piotroski F-Score, which indicates that the company is currently in a healthy situation.

The top guru shareholders of United Therapeutics:

1. Vanguard Health Care: 1,320,000 shares, representing 2.64% of the company’s shares outstanding and 0.32% of their total portfolio.

2. Jim Simons: 590,378 shares, representing 1.18% of the company’s shares outstanding and 0.1% of his total portfolio.

3. John Hussman: 358,000 shares, representing 0.72% of the company’s shares outstanding and 1.6% of his total assets managed.

The Peter Lynch Chart suggests that the company is currently overvalued:



United Therapeutics has a market cap of $4.48 billion. Its shares are currently trading at around $89.14 with a P/E ratio of 16.20, a P/S ratio of 4.30 and a P/B ratio of 3.40.

PepsiCo (PEP)

John Hussman’s fourth largest holding goes to PepsiCo where the guru maintains 355,825 shares of the company’s stock. His position in the company makes up for 1.6% of his total portfolio and 0.02% of the company’s shares outstanding.

During the third quarter Hussman reduced his holdings -11.89% by selling 48,000 shares of the company’s stock. He sold these shares in the price range of $79.06 to $86.80, with an estimated average quarterly price of $82.18. Since then the price per share has increased approximately 4%.

Hussman’s historical holding history of Pepsi:



PepsiCo is an American multinational food and beverage corporation with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages and other products.

PepsiCo’s historical revenue and net income:



The analysis on Pepsi reports that the company’s revenue has slowed over the past year, the dividend yield is nearing a five-year low, its P/E ratio is at a one-year low and the company has issued $5.2 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:



PepsiCo has a market cap of $130.69 billion. Its shares are currently trading at around $85.22 with a P/E ratio of 19.90, a P/S ratio of 2.10 and a P/B ratio of 5.80. The company had an annual average earnings growth of 9.5% over the past 10 years.

GuruFocus rated PepsiCo the business predictability rank of 5-star.

Clorox Company (CLX)

Hussman’s fifth largest position goes to Clorox Company where the guru holds on to 354,000 shares. His position in the company represents 1.6% of his total portfolio and 0.27% of the company’s shares outstanding.

Hussman upped his stake in Clorox over the third quarter, adding 40.2% to his position in the company. Hussman purchased 101,500 shares of Clorox, in the price range of $81.72 to $87.45, with an estimated average quarterly price of $84.42. Since then the price per share has increased approximately 7.7%.

Hussman’s historical holding history:



The company is a manufacturer and marketer of consumer and professional products. It sells its products through mass merchandisers, grocery stores, other retail outlets, distributors and medical supply providers.

Clorox’s historical revenue and net income:



The analysis on Clorox reports that the company’s price has been in decline over the past year, its dividend yield is near a 5-year low, its price is near a 10-year high and its P/E and P/S ratios are near historical highs.

The top guru shareholders of Clorox:

1. Donald Yacktman: 6,149,242 shares, representing 4.71% of the company’s shares outstanding and 2.2% of his total portfolios.

2. Brian Rogers: 3,239,200 shares, representing 2.48% of the company’s shares outstanding and 1% of his total portfolio.

3. Yacktman Focused Fund: 2,660,000 shares, representing 2.04% of the company’s shares outstanding and 2.5% of their total assets managed.

The Peter Lynch Chart suggests that the company is currently overvalued:



Clorox Company has a market cap of $11.68 billion. Its shares are currently trading at around $90.54 with a P/E ratio of 20.80, a P/S ratio of 2.20 and a P/B ratio of 80.70. The dividend yield for Clorox stock is currently at 3.00%. The company had an annual average earnings growth of 5.80% over the past ten years.

Check out Hussman’s complete third quarter portfolio here.

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Rating: 2.8/5 (8 votes)

Comments

chompinchuck
Chompinchuck - 5 months ago
He continues to buy and hold stock and scream bloody murder that the market is over valued.

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