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T2 Partners Update - Whitney Tilson Sells Out 29 Companies in Third Quarter

November 12, 2013 | About:
Sally Jones

Sally Jones

49 followers
The changes in the third quarter portfolio of T2 Partners Management LP, led by Guru Whitney Tilson, include 29 sell outs, with high-impact sells of First American Financial Corp. (FAF), Apple Inc. (AAPL) and EMC Corporation (EMC). Whitney Tilson’s updated portfolio lists 40 stocks, 11 of them new, and a total value at $63 million. The quarter-over-quarter turnover is 26%. The Tilson portfolio is weighted with financial services at 32.6%, consumer cyclical at 24.8% and real estate at 11.1%. Whitney Tilson is averaging a return of 11.65% over 12 months,

Here are company updates and Guru Tilson’s trade details, as of Sept. 30, 2013.

First American Financial Corp. (FAF): Sold Out

Impacts Portfolio: -4.5%

Up 8% over 12 months, First American Financial Corp., an insurance company, has a market cap of $2.64 billion; its shares trade with a P/E ratio of 12.10. The dividend yield is 1.90%.

Company Earnings: The company reported financial results for the third quarter of 2013 with revenue of $1.3 billion, up 8% compared to the same quarter of 2012. Net income was $63.9 million for the quarter, down from $103.5 million in the third quarter of 2012. Earnings of $0.59 per diluted share for the reporting quarter also dropped from $0.95 per diluted share in the same quarter a year ago.

Guru Action: As of Sept. 30, 2013, Whitney Tilson sold out his holding, selling 210,000 shares at an average price of $22.30 per share, gaining 12.1%.

The current share price is around $25.14, with a change from average up 13%.

In five quarters of low to moderate gains, Whitney Tilson’s highest gain was 31.9% on a new buy of 58,000 shares at an average price of $18.95, in the third quarter of 2012. His lowest gain was 1.3% on 43,454 shares bought at an average price of $24.67 in the second quarter of 2013.

Numerous gurus hold FAF and there is very active insider trading.

Track historical pricing, revenue and net income:

1384286069834.png

Apple Inc. (AAPL): Sold Out

Impacts Portfolio: -4.2%

Down 4% over 12 months, Apple Inc. has a market cap of $469.54 billion; its shares trade with a P/E ratio of 13.10. The dividend yield is 2.30%.

Company Earnings: The company reported financial results for its fiscal 2013 fourth quarter ended September 28, 2013, with revenue of $37.5 billion and a quarterly net profit of $7.5 billion. Earnings of $8.26 per diluted share were reported for the quarter. In the same fiscal quarter a year ago, revenue was lower, at $36 billion, but with a higher net profit of $8.2 billion. Earnings in the same quarter a year ago were $8.67 per diluted share.

According to a company press release, Apple Inc. sold 33.8 million iPhones, up from 26.9 million in the same quarter a year ago. The company sold slightly more iPads during the reporting quarter at 14.1 million iPads, up from 14 million in the same quarter a year ago. Macs sold 4.6 million units, down from 4.9 million in the same quarter a year ago.

Guru Action: As of Sept. 30, 2013, Whitney Tilson sold out his holding, selling 2,879 shares at an average price of $430.74 per share, gaining 20.8%.

The current share price is around $518.66, with a change from average up 12%.

Over a trading history that began in the third quarter of 2011, Tilson gained 4% on 20,996 shares at an average price of $501.85 per share. Selling, he gained 3% on 9,996 shares at an average price of $504.08 per share.

Among numerous gurus holding AAPL, six gurus traded AAPL in the third quarter of 2013.

There is active insider selling.

Track historical pricing, revenue and net income:

1384286382207.png

EMC Corporation (EMC): Sold Out

Impacts Portfolio: -2.9%

Up 1% over 12 months, EMC Corporation, the data storage company, has a market cap of $49.76 billion; its shares trade with a P/E ratio of 19.40. The dividend yield is 0.80%.

Company Earnings: The company reported financial results for the third quarter of 2013 with consolidated revenue of $5.5 billion, marking a 5% increase over the third quarter of 2012. The company’s GAAP net income attributable was $586 million. GAAP earnings of $0.27 per weighted average diluted share were reported for the third quarter of 2013. EMC’s operating cash flow was up25% year-over-year, at $4.7 billion as of October 22, 2013. EMC’s balance sheet for the third quarter lists $17.5 billion in cash and investments.

Guru Action: As of Sept. 30, 2013, Whitney Tilson sold out his holding, selling 125,000 shares at an average price of $25.97 per share, taking a loss of 6.9%.

The current share price is around $24.02, with a change from average down 8%.

Over a five-year trading history of mostly gains, Whitney Tilson’s highest gain of 130.1% was made on a new buy of 48,268 shares at an average price of $10.51 per share, in the fourth quarter of 2008. His low point was a loss of 0.3% on 15,000 shares bought at an average price of $23.58 per share, in the second quarter of 2013.

Check out the numerous gurus trading EMC in the third quarter of 2013 and the active insider selling.

Track historical pricing, revenue and net income:

1384287079412.png

Whitney Tilson is the founder and Managing Partner of T2 Partners LLC and the Tilson Mutual Funds.

Check out the complete portfolio update of Whitney Tilson.



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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: 2.1/5 (7 votes)

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