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S&P's Nervous Nellies – Mmmmm Good?

December 11, 2013 | About:
Sally Jones

Sally Jones

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Campbell Soup Co. (CPB) has new concern about its earnings and Starbucks Corporation (SBUX) investors wonder about slowing growth, after the company reported that it had opened 558 net new stores, including its 1,000th store in both China and Japan, in the quarter ended Sept. 29, 2013. Both stocks are showing up on the losing side of the S&P 500 index.

Over 12 months, Campbell Soup (CPB) is up 14%. Five gurus sold out their CPB in the third quarter of 2013, but seven of them remain for the company’s predictable revenue and earnings growth. The company reported its first quarter fiscal 2014 financial results with a 2% drop in sales and adjusted earnings at $0.66 per share, marking a 21% decrease from a year ago. Campbell reported earnings from continuing operations at $181 million, down from $232 million in the same quarter a year ago. Earnings of $0.57 per share for the reporting quarter dropped from $0.73 per share in the same quarter of the previous year.

Here's the most recent guru action on both companies:

Campbell Soup Co. (CPB)

Campbell Soup Co. has a market cap of $12.84 billion; its shares were traded at around $40.64. The P/E ratio is 34.00. The dividend yield is 1.50%. GuruFocus gives CPB 4.5 out of 5 stars for business predictability.

Here’s the GuruFocus analysis of CPB.

Incorporated in 1922, Campbell Soup Co., together with its subsidiaries, manufactures and sells branded convenience food products. It operates in five segments: U.S. Simple Meals, Global Baking & Snacking, International Simple Meals & Beverages, U.S. Beverages & Bolthouse and Foodservice. Since June 2013, the company has added Plum Organics and Kelsen Group, providing premium, organic foods and snacks serving nutritional needs of babies, toddlers and children's and baked snacks under Kjeldsens and Royal Dansk brand.

Historical share pricing, revenue and net income:





Guru Action: As of Sept. 30, 2013, there are 7 guru stakeholders and recent insider sells.

As of Sept. 30, 2013, the top guru stakeholder is Brian Jones with 5,932,900 shares or 1.89% of shares outstanding. After five years of double-digit gains, Rogers had his first loss on CPB in the third quarter. He took a loss of 9.1% on 5,932,900 shares at an average price of $44.83.

As of Sept. 30, 2013, Steven Cohen made a new buy of 45,738 shares or 0.01% of shares outstanding. After five years of mostly double-digit gains and selling out four times, Cohen also had a first loss on CPB of 9.1% on 45,738 shares at an average price of $44.83.

Here’s Cohen's trading history:



Starbucks Corporation (SBUX)

Up 44% over 12 months, Starbucks has a market cap of $58.31 billion; its shares were traded at around $77.25. The P/B ratio is 13.00. The dividend yield is 1.15%.

Formed in 1985, Starbucks Corporation purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, complementary food items, a selection of teas, and beverage-related accessories and equipment, through its company-operated retail stores.

Starbucks Corporation reported financial results for its fourth quarter of fiscal 2013, ended September 29, 2013, with total net revenues of $3.8 billion, up by13%. Globally, comparable store sales rose 7%. The company’s consolidated operating income rose 29%, at $669 million for the reporting quarter. Earnings of $0.63 per share increased 37%.

Check out the GuruFocus analysis with six warnings.

Historical share pricing, revenue and net income:





Guru Action: As of Sept. 30, 2013, there are 15 guru stakeholders and active insider trading.

As of Sept. 30, 2013, the top guru stakeholder is Frank Sands with 8,456,213 shares or 1.13% of shares outstanding. After five years of remarkable gains, he reduced his position by 24.96% in the third quarter, selling 2,812,813 shares at an average price of $71.87, for a gain of 7.7%. Overall, Sands gained 116% buying 14,050,874 shares at an average price of $35.78. Selling, he gained 24% 5,594,661shares at an average price of $62.63.

After a truly remarkable history of gains, as of Sept. 30, 2013, Caxton Associates sold out 10,000 shares at an average price of $71.87, for a gain of 7.7%.

Check out the Caxton trading history:



Learn why you should ignore SBUX’s 3% drop yesterday.

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Rating: 3.0/5 (3 votes)

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