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Gurus and Insiders on Alcoa, CTL and WPX

November 09, 2013 | About:
Sally Jones

Sally Jones

49 followers
Here are the third quarter updates for Alcoa Inc. (AA), WPX Energy (WPX) and CenturyLink Inc. (CTL), all near the bottom of the S&P500, all with active insiders and all broadly held by billionaire investors.

Alcoa Inc. is up 1% year to date. Yesterday in Cleveland, Alcoa’s CEO Klaus Kleinfeld dispelled worries that aluminum is unavailable, calling the claim “a total myth,” according to Bloomberg. Down 22% year to date, CenturyLink Inc. reported adding 33,000 broadband customers and almost 17,000 Prism TV customers in third quarter. WPX Energy (WPX) is up 23% since January but reported a net loss of $212 million over the first nine months of 2013.

Alcoa Inc. (AA)

Up 7% over 12 months, Alcoa Inc., the global aluminum company, has a market cap of 9.69 billion; its shares were traded at around $9.05. The P/E is 35.00. The dividend yield is 1.30%.

Company Financial Results: For the third quarter of 2013, Alcoa Inc. reported revenue of $5.8 billion, in spite of lower aluminum prices. Net income was $24 million for the quarter, translating to $0.02 per share. In the same quarter of 2012, the company had a net loss of ($119 million). At the end of third quarter, Alcoa’s balance sheet shows $1 billion in cash.

Check out the full GuruFocus analysis of AA, showing four warning signs.

Historical share pricing, revenue and net income:

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Guru Action: As of Sept.30, 2013, Manning & Napier Advisors Inc. was by far the largest guru stakeholder with 51,057,234 shares or 4.77% of shares outstanding. The firm increased its position by 2.53%, buying 1,258,842 shares at an average price of $8.05 per share, for a gain of 12.4% in the third quarter.

Manning & Napier Advisors had a loss of 1% on 55,328,717 shares bought at an average price of $9.14 per share. The firm averaged a 5% gain selling 4,271,483 shares at an average price of $8.65 per share.

Check out more guru stakeholders, along with very active insider trading of AA.

CenturyLink Inc. (CTL)

Down 19% over 12 months, CenturyLink Inc., a Louisiana-based telecommunications company, has a market cap of $18.82 billion; its shares were traded at around $31.33. The P/E ratio is 18.20. The dividend yield is 7.50%.

Company Financial Results: For the third quarter of 2013, the company reported revenue of $4.52 billion and adjusted net income of $375 million, with adjusted earnings per diluted share of $0.63. CenturyLink reported a net loss of $1.05 billion (GAAP), translating to a $1.76 loss per share.

Historical share pricing, revenue and net income:

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Guru Action: As of Sept. 30, 2013, Brian Rogers held 4,136,179 shares or 0.69% of shares outstanding. In the third quarter he took of loss of 8% on his holding of 4,136,179 shares at an average price of $34.04.

Overall in his trading history of six losing quarters, Brian Rogers averaged a loss of 21% on 4,986,179 shares bought at an average price of $39.98 per share. He also averaged a loss of 15% selling 850,000 shares at an average price of $36.95 per share.

Check out the other guru stakeholders and the recent insider trading of CTL.

WPX Energy (WPX)

Up 23% over 12 months, WPX Energy, an oil and gas E&P company, has a market cap of $3.75 billion; its shares were traded at around $18.68. The P/B ratio is 0.70. The company does not pay a dividend.

Company Financial Results: For the third quarter of 2013, WPX Energy reported an unaudited net loss of $114 million, compared to a net loss of $66 million in the same quarter of 2012. For the third quarter of 2013, the net loss equated to a loss of $0.57 per share. For the first nine months of 2013, the company reported an unaudited net loss of $212 million, compared to a net loss of $140 million in the same period of 2012.

Historical share pricing, revenue and net income:

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Guru Action: In September and October insider selling at WPX has been very active. Four gurus made new buys in the second quarter of 2013.

As of June 30, 2013, Donald Smith was the top guru stakeholder with 9,660,214 shares or 4.82% of shares outstanding. He increased his position by 11.97% in the second quarter, buying 1,032,971 shares at the average price of $17.86, for a gain of 4.6%. In six quarters, all gaining, he averaged a gain of 13% buying 9,660,214 shares at an average price of $16.59 per share.

Check out more guru stakeholders and very active insider trading at WPX.



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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: 2.3/5 (3 votes)

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