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Is REXI Still Sexy? Cooperman Reduces - Three Gurus Sell

November 27, 2013 | About:
Sally Jones

Sally Jones

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According to GuruFocus Real Time Picks, Leon Cooperman just made a reduction to Resource America Inc. (REXI), a specialized asset management company managing around $15.3 billion across various asset classes, according to its website. The company uses industry-specific expertise to evaluate, originate, service and manage investment opportunities through its real estate, commercial finance and financial fund management subsidiaries.

In his latest reduction, Leon Cooperman cut his stake from 5.83% to 3.98% of shares outstanding, second only to top guru stakeholder Donald Yacktman with 7.39% of shares outstanding, as of Sept. 30, 2013. Cooperman joins three more gurus who sold in third quarter. With no new REXI buys or adds in the third quarter, why are some of the gurus selling REXI?

Check out the GuruFocus analysis that shows seven warning signs about the company.

Here is a real-time look at Leon Cooperman’s most recent reduction and other billionaires trading REXI.



Resource America Inc. (REXI)

Up 39% over 12 months, Resource America Inc. has a market cap of $190.9 million; its shares were traded at around $9.42 with a P/E ratio of 49.60. The dividend yield is 1.40%.

Resource America Inc. reported third quarter 2013 financial results with a net income of $3.4 million (GAAP), compared to a net loss of $(2.3 million) in the same quarter a year ago. Earnings were $0.16 per common diluted share in the third quarter of 2013, up from $0.11 in the same quarter of 2012. Adjusted net income was reported non-GAAP at $5.1 million, compared to $3.1 million in the same quarter of 2013. This translates to earnings of $0.23 per common diluted share in the reporting quarter, up from $0.15 in the third quarter of 2012, according to a company press release.

Real Time Guru Action: As of Nov. 25, 2013, Leon Cooperman reduced his position by 31.7%, selling in the average price range of $9.34, leaving his current shares at 813,901. This trade impacts his portfolio by -0.05%

Over a five-year history, Cooperman has averaged a gain of 47% on 1,191,733 shares bought at an average price of $6.40 per share.

In the third quarter of 2013, he gained 15.6% on 1,191,733 shares.



More from Third Quarter


Chuck Royce: Royce held REXI for two quarters. As of Sept. 30, 2013, Chuck Royce sold out, unloading 4,200 shares at an average price of $8.15 for a gain of 15.6%. He gained 4.1% in the second quarter of 2013 when he made a new buy of 4,200 shares at an average price of $9.05 per share.

Ruane Cunniff: As of Sept. 30, 2013, Ruane Cunniff reduced its position by 24.22%, selling 192,820 shares at an average price of $8.15 per share, for a gain of 15.6%.

Over five years, the firm has averaged a gain of 2% on 796,000 shares bought at an average price of $9.28 per share. On shares sold, the firm averaged a gain of 16% on 192,820 shares sold at an average price of $8.15 per share.

Jim Simons: As of Sept. 30, 2013, Jim Simons reduced his position by 7.83%, selling 986 shares at an average price of $8.15, also gaining 15.6%%.

He has averaged a gain of 36% on 29,679 shares bought at an average price of $6.94 per share. On shares sold, Simons also averaged a gain of 36% on 18,065 shares sold at an average price of $6.94 per share.

Donald Yacktman: As of Sept. 30, 2013, the top guru stakeholder, Donald Yacktman gained 15.6% on his holding of 1,509,476 shares at an average price of $8.15 per share. He has averaged a gain of 52% on 1,293,900 shares bought at an average price of $6.21 per share. Selling, he gained 55% on 171,163 shares sold at an average price of $6.08 per share.

Here’s more guru and insider trading.

Track share pricing since 1990:



The updated portfolio of Omega Advisors lists 74 stocks, 10 of them new, a total value at $6.61 billion, and a quarter-over-quarter turnover of 12%. The portfolio is currently weighted with top three sectors: financial services at 27.3%, energy at 21% and technology at 9.6%.

Omega Advisors Inc. was founded in 1991 by the legendary Leon G. Cooperman. After 25 years of service, Cooperman retired in 1991 from his positions as general partner of Goldman, Sachs & Co. and as chairman and CEO of Goldman Sachs Asset Management in order to organize Omega Advisors. As chairman of Omega Advisors, Guru Cooperman is focused on value investing.

Here is the complete portfolio of Leon Cooperman.



Be sure to read more about:

1. Leon Cooperman's Undervalued Stocks

2. Leon Cooperman's Top Growth Companies

3. Leon Cooperman's High Yield stocks

4. Stocks that Leon Cooperman 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: 3.0/5 (2 votes)

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