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Joel Greenblatt’s High-Impact Reductions

November 23, 2013 | About:
Sally Jones

Sally Jones

49 followers
The recent portfolio of “Magic Formula” Joel Greenblatt, Gotham Capital, lists 881stocks, 181 of them new, with a total value of $3.07 billion, and a quarter-over-quarter turnover of 35%. His portfolio is weighted with industrials at 24.1%, consumer cyclical at 21.2% and technology at 18.6%. The stocks bought by Joel Greenblatt in the past 12 months have an average return of 22.76%. Here are the major decreases made by Joel Greenblatt in the third quarter of 2013, starting with his highest-impact reduction of GameStop, the world's largest multichannel video game retailer, reporting an 18.8% increase in global sales for the third quarter.

GameStop reported financial results for the third quarter of 2013 with global sales of $2.11 billion, up from $1.77 billion in the same quarter of 2012. Net earnings of $68.6 million, marked a 45.3% increase over the third quarter of 2012. Consolidated comparable store sales increased by 20.5%. In third quarter, the company’s new software sales increased by 43.1%. Hardware sales were up 15.3%. Earnings of $0.58 per diluted share increased by 52.6% over the same quarter a year ago at $0.38.



GameStop Corp. (GME): Reduced

Impact to Portfolio: -0.63%

Current Shares: 123,179

Up 86% over 12 months, GameStop Corp.has a market cap of $5.83 billion; shares trade with a P/B ratio of 2.70. The dividend yield is 2.16%.

GameStop has 6,488 company-operated stores in 15 countries worldwide and an online store.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 73.89%, selling 348,547 shares at an average price of $47.81, for a gain of 4.3%.

The current share price is $49.88 with a change from average up 4%.

Over a five-year trading history, Greenblatt averaged a gain of 112% on 833,429 shares bought at an average price of $23.58 per share. He gained 29% selling 710,250 shares at an average price of $38.57 per share.

Check out the third quarter guru trades and recent insider sells.

Tracking share price, revenue and net income:

1385242997839.png

SPDR S&P 500 ETF (SPY): Reduced

Impact to Portfolio: -0.61%

Current Shares: 177,321

Up 28% over 12 months, SPYhas a market cap of $136.49 billion. The dividend yield is 2.00%.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 33.7%, selling 90,121 shares at an average price of $167.45 per share, for a gain of 8%.

The current share price is $180.81 with a change from average up 8%.

Over 10 quarters of trading, Greenblatt averaged a gain of 28% on 902,626 shares bought at an average price of $140.74 per share. He gained 24% selling 725,305 shares at an average price of $145.94 per share.

Numerous puts and calls were made on SPY in the third quarter. Check out the third quarter guru action. There was no insider activity found.

Tracking share price, revenue and net income:

1385243175056.png

Tempur Sealy International Inc. (TPX): Reduced

Impact to Portfolio: -0.52%

Current Shares: 18,262

Up 87% over 12 months, Tempur Sealy International Inc. has a market cap of $2.96 billion; shares trade with a P/E ratio of 40.60. The company does not pay a dividend.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 93.73%, selling 272,893 shares at an average price of $41.52 per share, for a gain of 18%.

The current share price is $49.00 with a change from average up 18%.

In eight quarters of mixed results, Greenblatt gained 7% on 437,858 shares bought at an average price of $45.92 per share. He also gained 18% on 419,596 shares sold at an average price of $41.63 per share.

Check out the six gurus holding TPX as of the third quarter and recent insider selling.

Tracking share price, revenue and net income:

1385243449959.png

Wells Fargo & Co. (WFC): Reduced

Impact to Portfolio: -0.49%

Current Shares: 130,050

Up 35% over 12 months, Wells Fargo & Co. has a market cap of $233.67 billion; shares trade with a P/E ratio of 11.60. The dividend yield is 2.59%.

Guru Action: As of Sept. 30, 2013, Joel Greenblatt reduced his position by 82.66%, selling 619,992 shares at an average price of $42.69, for a gain of 3.9%.

The current share price is $44.36 with a change from average up 4%.

In six gaining quarters, Greenblatt gained 14% on 750,042 shares bought at an average price of $38.92 per share. He also gained 4% on 619,992 shares sold at an average price of $42.69 per share.

Check out the numerous gurus trading and insiders selling WFC.

Tracking share price, revenue and net income:

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Inventor of magic formula investing and founder of the New York Securities Auction Corporation (NYSAC), Joel Greenblatt is a gifted author as well as the founder and managing partner of Gotham Capital.

Here’s Joel Greenblatt’s complete portfolio.



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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 (3 votes)

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