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Michael Price’s Top Sells – 11 Gurus Exit SFD

November 19, 2013 | About:
Sally Jones

Sally Jones

49 followers
Guru Michael Price is averaging a 12-month return of 72.41%. As of the third quarter, his private firm, MFP Investors, has a portfolio of 88 stocks, 5 of them new, a total value at $752 million, with a quarter-over-quarter turnover of 8%. The portfolio is currently weighted with top three sectors: financial services at 33.3%, healthcare at 13% and energy at 12.4%.

Part of the billionaire exodus that left SFD behind, Price is one of 11 gurus that sold out Smithfield Foods Inc. in the third quarter, after making massive gains on it for years. In September, the global packaged food company was bought by Shuanghui International, a large stakeholder of China’s largest meat processor and largest publicly traded meat company, Henan Shuanghui Investment & Development Co.

Smithfield Foods reported its sales were up 3% in its third quarter of fiscal 2013. SFD had a net income of $81.5 million, with earnings per diluted share of $0.58.

Here are four high-impact sells made by Michael Price in the third quarter of 2013.



Smithfield Foods Inc. (SFD): Sold Out

Impacts Portfolio: -2.1%

Up 54% over 12 months, Smithfield Foods Inc., a global food company and the world’s largest pork processor and hog producer, has a market cap of $4.73 billion; its shares were traded at around $33.97 with a P/E ratio of 30.00. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Michael Price sold out his SFD position, selling 490,000 shares at an average price of $33.48, for a gain of 1.5%, his lowest gain in seven trading quarters over a five-year period.

Price sold out after triple-digit gains in four out of seven gaining quarters. His highest gain was 239.4% in the first quarter of 2009 when he sold 20,000 shares at an average price of $10.01 per share.

Track historical share pricing, revenue and net income:

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Check out the gurus’ sell outs and insider trades.

Read the GuruFocus analysis showing two warnings about SFD.



McGraw Hill Financial Inc. (MHFI): Reduced

Impacts Portfolio: -1.91%

Up 43% over 12 months, McGraw Hill Financial Inc. has a market cap of $19.73 billion; its shares were traded at around $72.84 with a P/E ratio of 21.00. The dividend yield is 1.50%.

Guru Action: As of Sept. 30, 2013, Michael Price reduced his position by 63.62%, selling 271,100 shares at an average price of $60.59, and gaining 20.2%.

Over a five-year history, Price bought 309,100 shares at an average price of $33.32, for a gain of 119%. He gained 47% selling 579,100 shares at an average price of $49.60.

Track historical share pricing, revenue and net income:

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Elan Corp. PLC (ELN): Sold Out

Impacts Portfolio: -1.6%

Up 74% over 12 months, Elan Corp. PLC, an Irish biotech company, has a market cap of $9.13 billion; its shares were traded at around $17.78 with a P/E ratio of 3.90. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Michael Price sold out his position, selling 823,150 shares at an average price of $15.07 per share, for a gain of 18%.

Price sold out after triple-digit gains in two out of seven gaining quarters. His highest gain was 220.4% in the fourth quarter of 2010 when he made a new buy of 870,000 shares at an average price of $5.55 per share.

Track historical share pricing, revenue and net income:

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Cubist Pharmaceuticals Inc. (CBST): Sold Out

Impacts Portfolio: -1.2%

Up 57% over 12 months, Cubist Pharmaceuticals Inc., a biotechnology company, has a market cap of $4.7 billion; its shares were traded at around $63.61 per share with a P/E ratio of 226.40. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Michael Price sold out his position, selling 182,500 shares at an average price of $60.44 per share, for a gain of 5.2%.

Holding for three quarters of gains, Price gained 85.9% and 86.8% in the second and third quarters of 2011, respectively.

Track historical share pricing, revenue and net income:

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Here is the complete portfolio of Michael Price.



Be sure to read:

1. Michael Price's Undervalued Stocks

2. Michael Price's Top Growth Companies

3. Michael Price's High Yield stocks

4. Stocks that Michael Price keeps buying

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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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: 4.0/5 (2 votes)

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