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Guru Action on Three Stocks at 52-Week Low

December 09, 2013 | About:
Sally Jones

Sally Jones

49 followers
A number of billionaire investors hold today’s featured gold companies, Newmont Mining Corporation (NEM) and Goldcorp Inc. (GG), but none of them currently hold Cencosud SA (CNCO), Chile’s largest retailer. All three companies are at a 52-week low, as revealed by the GuruFocus special feature 52-week low screener.

Newmont Mining reported its third quarter 2013 net income was $429 million, an increase of 7% over the same quarter a year ago at $400 million. The company’s revenue for the quarter was $2 billion, reflecting a 20% drop from the third quarter in 2012.

In the third quarter of 2013, Newmont had attributable gold production of 1.284 million ounces and copper production of 34 million pounds. Gold production was up 4% and copper was down 3% from the third quarter of 2012. At the end of 2012, Newmont had proven and probable gold reserves of 99.2 million ounces and an aggregate land position of approximately 29,000 square miles.

Highlight: Newmont Mining Corporation (NEM)

The NEM share price is around $23.45 or 51.7% off the 52-week high of $47.59. Its dividend yield is 5.20%.

Down 48% over 12 months, Newmont Mining Corporation has a market cap of $11.56 billion and is traded at a P/B of 1.00.

Incorporated in 1921, Newmont Mining Corporation is a gold producer, engaged in the exploration for and acquisition of gold properties. The company is also engaged in the production of copper, mainly through its operations in Indonesia and Australia. The company has operations or assets in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico.

Tracking historical share price, revenue and net income:

1386620691099.png

Guru Action: Numerous gurus hold NEM shares as of the third quarter of 2013 and there is very active insider trading.

As of Sept. 30, 2013, Jean-Marie Eveillard’s First Eagle Investment Management is the top guru stakeholder, holding 6,482,549 shares, after increasing its position in the third quarter by 5.89%. The firm bought 360,368 shares at an average price of $29.64 per share, taking a loss of 20.9% in the third quarter of 2013. The firm’s shares represent 1.32% of shares outstanding and 0.53% of total assets managed.

Over five years of losing quarters, the firm has averaged a loss of 51% on 7,488,473 shares bought at an average price of $48.32 per share. First Eagle also lost 52% selling 8,127,773 shares at an average price of $48.76 per share.

Highlight: Goldcorp Inc. (GG)

The GG share price is around $21.08 or 46.6% off the 52-week high of $38.87. Its dividend yield is 2.80%.

Down 44% over 12 months, Goldcorp Inc.has a market cap of $17.14 billion and is traded at a P/B of 0.80.

Goldcorp Inc. is an Ontario 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. The company's current sources of operating cash flows are mainly from the sale of gold, silver, copper, lead and zinc.

Guru Action: Eight gurus hold GG shares as of the third quarter of 2013 and there is active insider trading.

As of Sept. 30, 2013, Jean-Marie Eveillard’s First Eagle Investment Management is the top guru stakeholder, holding 31,365,974 shares. The firm reduced its position by 1.02% in the third quarter, selling, 324,010 shares at an average price of $27.60, for a loss of 23.7%.

The firm’s holding of 31,365,974 shares represents 3.86% of shares outstanding and 2.4% of total assets managed.

Over five years of losses, the firm has averaged a loss of 36% on 31,025,634 shares bought at an average price of $33.15 per share. First Eagle also had a loss of 44% selling 710,230 shares at an average price of $37.61 per share.

1386623187409.png

Highlight: Cencosud SA (CNCO)

The CNCO share price is around $10.82 or 47.0% off the 52-week high of $19.76. Its dividend yield is 0.90%.

Down 33% over 12 months, Cencosud SA has a market cap of $10.21 billion and is traded at a P/E of 17.80 and a P/B of 1.30.

The largest retailer in Chile and the third largest in Latin America, Cencosud SA is a multi-brand retailer that manages and operates a network of supermarkets, home centers, department stores, shopping malls and financial services. The company also provides insurance brokerage, family entertainment centers and travel agency services.

Tracking historical data:

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Guru Action: As of Sept. 30, 2012, Jeremy Grantham was the sole guru stakeholder, making a new buy of 1,156,000 shares at an average price of $17.55, for a loss of 38.3%. He sold out his CNCO in the following quarter, selling at $16.51 per share, for a loss of 34.4%.

No insider trades were found.

Check out the GuruFocus analysis for CNCO.



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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.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

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: 1.5/5 (2 votes)

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