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Snow Capital Update - Richard Snow Sells

November 13, 2013 | About:
Sally Jones

Sally Jones

49 followers
The third quarter portfolio of Snow Capital Management LP, managed by Guru Richard Snow, includes the high-impact sellouts of Sealed Air Corporation (SEE), True Religion Apparel (TRLG) and Kindred Healthcare Inc. (KND), as well as a major reduction of his long-time stake in Texas Instruments Inc. (TXN).

Richard Snow’s updated portfolio lists 117 stocks, 8 of them new, and a total value at $2.24 billion. The quarter-over-quarter turnover is 9%. Snow’s portfolio is weighted with industrials at 22.1%, financial services at 19.8% and energy at 12.9%. Snow is averaging a return of 23.34% over 12 months. In 2012, he returned 16.99% against the S&P500’s 15.4%.

Here’s a review of four of Snow's recent sells, starting with his reduction of Texas Instruments which he slashed by almost half. Texas Instruments reported third quarter revenue of $3.24 billion, up 6% sequentially. The company had quarterly net income of $629 million, down 20% from the third quarter a year ago. Earnings are also down 16% from a year ago, at $0.56 per share. TXN’s balance sheet shows $3.6 billion of cash and short-term investments at the end of the third quarter.

Texas Instruments Inc. (TXN): Reduced

Impacts Portfolio: -1.05%

Current Shares: 774,887

Up 47% over 12 months, Texas Instruments Inc., a global semiconductor and design manufacturer, has a market cap of $46.4 billion; its shares trade with a P/E ratio of 25.00. The dividend yield is 2.60%.

Guru Action: As of Sept. 30, 2013, Richard Snow reduced his position by 45.75%, selling 653,579 shares at an average price of $38.85 per share, gaining 9.1%.

The current share price is around $42.39, with a change from average up 9%.

Across a remarkable five-year history, Richard Snow averaged a gain of 135% buying 2,851,524 shares at an average price of $18.05 per share. He averaged a gain of 27% on 2,076,637 shares sold at an average price of $33.40 per share.

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While Ray Dalio increased his TXN position by 36.8% in the third quarter of 2013, numerous gurus reduced their positions and there is active insider selling to report.

Track historical pricing, revenue and net income:

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Sealed Air Corporation (SEE): Sold Out

Impacts Portfolio: -2.5%

Up 85% over 12 months, Sealed Air Corporation, a global packaging and container company, has a market cap of $6.04 billion; its shares trade with a P/B ratio of 4.20. The dividend yield is 1.70%.

Guru Action: As of Sept. 30, 2013, Richard Snow sold out his holding, unloading 2,238,965 shares at an average price of $28.33 per share, gaining 8.8%, his lowest gain following six quarters of double-digit gains.

The current share price is around $30.81, with a change from average up 8%.

Across a seven-quarter history, Richard Snow’s highest gains of 79.8%, 105.8% and 87.3% were made in the second, third and fourth quarters of 2012, respectively.

Check out other third quarter trading and recent insider selling.

Track historical pricing, revenue and net income:

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True Religion Apparel (TRLG): Sold Out

Impacts Portfolio: -1.7%

Up 27% over 12 months, True Religion Apparel, a clothing manufacturer,has a market cap of $823.62 million; its shares trade with a P/E ratio of 22.30. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Richard Snow sold out his TRLG, selling 1,128,546 shares at an average price of $31.81 per share, gaining 0.5%, his lowest gain in an all-gain history of nine quarters.

The current share price is around $31.98, with a change from average up 0%.

In the fourth quarter of 2010, Richard Snow’s highest gain of 47.7% was made on a new buy of 735,143 shares at an average price of $21.65 per share.

Richard Snow is one of three gurus selling out TRLG in the third quarter.

There is no insider trading for 2013 to report.

Tracking:

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Kindred Healthcare Inc. (KND): Sold Out

Impacts Portfolio: -1.5%

Up 45% over 12 months, Kindred Healthcare Inc., a healthcare services company, has a market cap of $785.8 million; its shares trade with a P/B ratio of 0.60. The dividend yield is 0.90%.

Guru Action: As of Sept. 30, 2013, Richard Snow sold out his KND holding, selling 2,533,994 shares at an average price of $14.39 per share, gaining 0.8%.

The current share price is around $14.51, with a change from average up 1%.

In nine quarters, the only quarter showing a loss of 1.6% was the third quarter of 2011, when Snow made a new buy of 2,981,791 shares at an average price of $14.75. The other eight quarters, except for the sellout quarter, show double-digit gains topping out at 67.9% when Snow sold 205,841 shares at an average price of $8.64 per share, in the second quarter of 2012.

Check out other third quarter trading and recent insider trading.

Track historical pricing, revenue and net income:

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Richard Snow is the founder, president and chief investment officer of Snow Capital Management LP, started in 1980. He began his career investing the proceeds from the sale of the Snow family businesses.

Here’s the complete portfolio update of Richard Snow.





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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: 3.0/5 (2 votes)

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