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Fishing with Gurus in a Pond of 52-week Lows

November 30, 2013 | About:
Sally Jones

Sally Jones

47 followers
The industry sectors change quickly. Just two months ago, there was a virtual ocean of 789 companies in the U.S. on a 52-week low. Today, there is only a pond of 200 companies, according to the GuruFocus special feature 52-week low screener. Nonetheless, it could pay to go fishing, not only for American companies but for hundreds of others around the world. Today’s feature looks at three companies in the sectors of banking, metals and mining, and REITS. The companies selected were screened for billionaire investors and yield.

Banks

This sector has really pulled up with only 17 companies out of 674 on a 52-week low. In early October, 65 stocks were listed on a low. The current low ratio is 0.03.

Highlight: BanColombia SA (CIB)

The CIB share price is currently $50.73 or 28.2% off the 52-week high of $70.62. Its yield is 3.20%.

Down 21% over 12 months, BanColombia SA has a market cap of $6.46 billion and trades with a P/E of 23.20.

BanColombia SA is a full service financial institution that offers banking products and services to individual and corporate customer base throughout Colombia.

Guru Action: One guru currently holds CIB shares and there is no insider activity found.

As of Sept. 30, 2013, Jim Simons is the sole guru stakeholder, holding 149,600 shares or 0.12% of shares outstanding.

He reduced his position by 32.06%, selling 70,600 shares at an average price of $56.94, for a loss of 10.9%.

Across a five-year trading history, he averaged a loss of 24% on 343,400 shares bought at an average price of $67.06 per share. He had a loss of 16% on 193,800 shares sold at an average price of $60.33 per share.

Tracking share price, revenue and net income:



Read more about many gurus who invested in CIB in the past.



Metals & Mining

In early October, this sector listed 45 stocks at a 52- week low. Today, metals and mining lists 9 stocks out of 172 on a 52-week low. The current low ratio is 0.05.

Highlight: Goldcorp Inc. (GG)

The GG share price is currently $22.46 or 45.2% off the 52-week high of $40.96. Its yield is 2.70%.

Down 42% over 12 months, Goldcorp Inc. has a market cap of $18.24 billion and is traded at a P/B of 0.90.

Goldcorp Inc. is a Canadian gold producer engaged in the operation, exploration, development and acquisition of precious metal properties in Canada, the United States, Mexico, and Central and South America. Based in Ontario, the company's current sources of operating cash flows are mainly from the sale of gold, silver, copper, lead and zinc.

Guru Action: As of the third quarter, eight gurus hold GG shares. No insider trades were found.

As of Sept. 30, 2013, Columbia Wanger increased its position by 1,166.38%, buying 267,100 shares at an average price of $27.60 per share, taking a loss of 18.6%. Over five quarters of trading, the firm has lost 36% on 798,100 shares bought at an average price of $35.05 per share. Selling, the firm lost 35% on 508,100 shares sold at an average price of $34.58 per share.

Tracking share price, revenue and net income:





Real Estate Investment Trusts - REITs

The REIT sector lists only 20 out of 191 companies on a low, compared to 82 stocks at a 52- week low, back in October. The current low ratio is 0.08.

Highlight: Hatteras Financial Corporation (HTS)

The HTS share price is currently $16.71 or 40.9% off the 52-week high of $28.28. Its yield is 15.90%.

Down 37% over 12 months, Hatteras Financial Corporation has a market cap of $1.63 billion and is traded at a P/B of 0.80.

Incorporated in 2007, Hatteras Financial Corporation is an externally-managed mortgage REIT, or real estate investment trust. The company invests mainly in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities guaranteed or issued by a U.S. Government agency such as the Government National Mortgage Association (Ginnie Mae), or by a U.S. Government-sponsored entity such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Guru Action: As of Sept. 30, 2013, Jeremy Grantham is the sole guru stakeholder after Steven Cohen sold out in the third quarter.

In the third quarter of 2013, Jeremy Grantham increased his position by 14.58%, buying 5,300 shares at an average price of $20.11, for a loss of 16.9%.

Across eight losing quarters, he lost 36% buying 64,887 shares at an average price of $26.22. Selling, he lost 38% on 23,226 shares at an average price of $27.00 per share.

Tracking share price, revenue and net income:



The insiders are buying HTS.

Using the GuruFocus 52-week low screener can help investors discover deep value while offering some level of assurance that billionaires are backing these companies.

If you are not a Premium Member, we invite you for a 7-day Free Trial.

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.

About the author:

Sally JonesSally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.8/5 (5 votes)

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