Numerous Gurus Hold S&P 'Biggest Losers' in Food, Sun and Games

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Nov 08, 2013
Year to date, Whole Foods Market Inc. is up 27% and has opened a record 32 stores in its fiscal year so far. International Game Technology (IGT, Financial) is up 18% and its social gaming revenues grew 151% to $219 million over last year. First Solar Inc. (FSLR, Financial) is up 88% year to date as solar module prices continue to fall.

These three companies have one thing in common – they are some of the "biggest losers" in the S&P500 and broadly held by billionaire investors.

Whole Foods Market Inc. (WFM, Financial)

Up 27% over 12 months, Whole Foods Market Inc. has a market cap of $21.72 billion; its shares were traded at around $58.31. The P/E is 40.10. The dividend yield is 0.70%.

Incorporated in 1980, Whole Foods Market Inc. currently operates 367 grocery stores in the United States, Canada, and the UK. The company has one operating segment natural and organic foods supermarkets.

Company Financial Results: For the fiscal fourth quarter of 2013, Whole Foods Market reported a 2% hike in sales over last year’s same fiscal quarter, at $3 billion. EBITDA was $274 million and net income was reported at $121 million for the quarter. Whole Foods shows earnings per diluted share of $0.32, up 7% from the same quarter a year ago. The company opened a record 12 stores in the reporting quarter.

Check out the full GuruFocus analysis of WFM, showing four good signs.

Historical share pricing, revenue and net income:

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Guru Action: As of Sept.30, 2013, Mario Gabelli increased his position by 47.6%, buying 5,650 shares at an average price of $55.21 per share, for a gain of 5.6%.

Gabelli’s remarkable five-year history of gains averaged a 65% gain on 37,752 shares bought at an average price of $35.39 per share. Gabelli also averaged a 46% gain on 20,232 shares sold at an average price of $40.03 per share.

His current shares are 17,520, as of the end of third quarter.

Check out more guru stakeholders, along with very active insider selling.

International Game Technology (IGT)

Up 28% over 12 months, International Game Technology has a market cap of $4.6 billion; its shares were traded at around $17.25. The P/E ratio is 15.60. The dividend yield is 2.00%.

Incorporated in 1980, International Game Technology is a global gaming company specializing in the design, manufacture, and marketing of electronic gaming equipment and systems products. The company manages operations in two geographic segments namely North America and

Company Financial Results: For the fiscal fourth quarter of 2013, the company reported income from continuing operations at $63.5 million, down 30% over last year’s $90.1 million. IGT had revenue of $632 million for the quarter, flat with the same quarter of last year but total fiscal year revenue increased 9% to $2.34 billion. For the quarter, earnings per share from continuing operations were down 27% at $0.24. IGT’s free cash flow of $335 million represents an increase of 41%.

Historical share pricing, revenue and net income:

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Guru Action: As of Sept. 30, 2013, Mario Gabelli reduced his position by 4.19%. He sold 31,000 shares at an average price of $19.06, taking a loss of 9.5%.

Gabelli’s current IGT shares are 708,227 or 0.27% of shares outstanding.

His five-year history of mixed results averaged a loss of 29% on 1,002,001 shares bought at an average price of $24.18 per share. He has averaged a 0% loss selling 1,160,974 shares at an average price of $17.29 per share.

Check out the other guru stakeholders and the recent insider selling.

First Solar Inc. (FSLR)

Up 146% over 12 months, First Solar Inc. has a market cap of $6 billion; its shares were traded at around $60.30. The P/E ratio is 12.80. The company does not pay a dividend.

Incorporated in 2006, First Solar Inc. manufactures and sells solar modules with an advanced thin film semiconductor technology, and it designs, constructs and sells photovoltaic (PV) solar power systems.

Company Financial Results: For the third quarter of 2013, First Solar reported net sales of $1.3 billion, an increase of $427 million from the same quarter of 2012. For the first nine months of 2013, the company reported revenue of $2.5 billion compared to $2.3 billion for the same period of 2012. Earnings per diluted share were reported as $1.94 (GAAP). The balance sheet shows net cash of $1.3 billion.

Historical share pricing, revenue and net income:

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Guru Action: As of Sept. 30, 2013, John Hussman increased his position by 42.45%, buying 149,000 shares at the average price of $42.28, for a gain of 42.6%. Buying 500,000 shares at an average price of $43.84, Hussman made a gain of 38%.

Check out more guru stakeholders and active insider trading at FSLR.



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