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Irving Kahn’s Kahn Brothers’ Top Five Stocks at Year-End

February 06, 2014 | About:
Monica Wolfe

Monica Wolfe

119 followers
One of America’s oldest and most respected value investors, Irving Kahn (Trades, Portfolio), and his fund Kahn Brothers recently reported their fourth quarter holdings which boasted several hefty reductions and one sell out. Over the past quarter Kahn did not add any new stocks, but the guru still maintains 42 stocks valued at $581 million.

The following five companies are the guru’s five largest positions.

New York Times Company (NYT)

Kahn’s largest position is in the New York Times Company where he maintains 4,261,658 shares of the company’s stock. This position makes up for 11.6% of his total portfolio as well as 2.85% of the company’s shares outstanding.

Over the past quarter Kahn reduced his holdings -21.66% by selling a total of 1,178,200 shares. He sold these shares near the estimated average quarterly price of $13.60 per share, and since then the price per share has increased a slight 1.8%.

This is the first reduction in Kahn’s holdings in the New York Times since the first quarter of 2010. Check out his holding history as of the close of the fourth quarter:

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The New York Times is a global, multimedia news and information company that currently includes newspapers, digital businesses, investments in paper mills and other investments.

The New York Times’ historical revenue and net income:

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The analysis on NYT reports that the company’s dividend yield is near a 3-year high, its revenue has been in decline over the past five years and its cash flow from operations has reported sever divergence from the reported net income.

The Peter Lynch Chart suggests that the company is currently undervalued:

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New York Times has a market cap of $2.07 billion. Its shares are currently trading at around $13.84 with a P/E ratio of 12.30, a P/S ratio of 1.10 and a P/B ratio of 2.80. The company had an annual average earnings growth of 44.30% over the past five years.

Pfizer (PFE)

The guru’s second largest holding goes to Pfizer where he maintains 1,899,759 shares of the company’s stock. This position makes up for 10% of the Kahn Brothers’ portfolio as well as 0.03% of the company’s shares outstanding.

Over the past quarter he reduced his holdings in Pfizer -24.25% by selling 608,243 shares. He sold them near the average quarterly price of $30.68 per share. Since then the price per share has dropped a slight -0.1%.

Irving Kahn (Trades, Portfolio)’s historical holdings:

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Pfizer is a global pharmaceutical firm which develops and produces medicines and vaccines for a range of conditions which include areas of immunology, inflammation, oncology, cardiovascular and metabolic diseases, neuroscience and pain.

Pfizer’s historical revenue and net income:

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The analysis on Pfizer reports that the company’s operating margin is expanding, its revenue has shown predictable revenue and earnings growth and its price is near a 5-year high. The analysis also notes that the company’s dividend yield is near a 5-year low and its P/B and P/E ratios are trading at historical lows.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Pfizer has a market cap of $198.64 billion. Its shares are currently trading at around $30.65 with a P/E ratio of 8.50, a P/S ratio of 3.90 and a P/B ratio of 2.80. The dividend yield of Pfizer stocks is 3.10%. Pfizer had an annual average earnings growth of 6.30% over the past ten years.

GuruFocus rated Pfizer the business predictability rank of 3-star.

Citigroup (C)

Kahn’s third largest position is in Citigroup where he maintains 1,074,173 shares of the company’s stock. This position makes up for 9.6% of his holdings and 0.04% of the company’s shares outstanding.

Over the past quarter Kahn reduced his holdings -21.88% by selling a total of 300,800 shares of the company’s stock. He sold these shares near the average quarterly price of $50.61% which has since then dropped approximately -7%.

Kahn’s historical holding history:

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Citigroup is a global financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

Citigroup’s historical revenue and net income:

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The analysis reports that the company’s dividend yield is near a 2-year low, its revenue has been in decline over the past five years and its P/B ratio is trading at a 1-year low.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Citigroup has a market cap of $142.73 billion. Its shares are currently trading at around $47.06 with a P/E ratio of 12.00, a P/S ratio of 1.80 and a P/B ratio of 0.70.

New York Community Bancorp (NYCB)

The guru’s fourth largest holding is in New York Community Bancorp where he holds on to 3,269,666 shares of the company’s stock. This position of Kahn’s makes up for 9.5% of his total portfolio holdings as well as 0.74% of the company’s shares outstanding.

During the fourth quarter Kahn reduced his holdings -21.16% by selling a total of 877,620 shares of the company’s stock. He sold these shares near the average quarterly price of $16.15 per share, and since then the price per share has dropped -3.2%.

Irving Kahn (Trades, Portfolio)’s holding history as of the fourth quarter:

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New York Community Bancorp is multi-bank holding company and has two main subsidiaries: New York Community Bank and New York Commercial Bank.

New York Community Bancorp’s historical revenue and net income:

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The analysis on New York Community Bancorp reports that the company’s revenue has been in decline over the past year, its operating margin is declining and its price is near a 2-year high. It also notes that the company’s revenue has been in decline and the company has also issued $970.264 million over the past three years.

The Peter Lynch Chart reports that the company is currently undervalued:

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New York Community Bancorp has a market cap of $6.89 billion. Its shares are currently trading at around $15.63 with a P/E ratio of 4.90, a P/S ratio of 4.90 and a P/B ratio of 1.10. The dividend yield of this stock is currently at around 6.40%.

Old Republic International (ORI)

Irving Kahn (Trades, Portfolio)’s fifth largest holding goes to Old Republic International where he maintains 2,461,710 shares of the company’s stock. This position makes up for 7.3% of his total portfolio as well as 0.95% of the company’s shares outstanding.

During the fourth quarter Kahn reduced this position -28.12% by selling 963,218 shares. He sold these shares around the average quarterly price of $16.41 per share, and since then the price per share has dropped nearly 10%.

Irving Kahn (Trades, Portfolio)’s historical holding history:

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Old Republic International is a Chicago-based holding company engaged in the single business of insurance underwriting. The company conducts its operations through a number of regulated insurance company subsidiaries organized into three major segments: General, Mortgage Guaranty and Title Insurance Groups.

Old Republic International’s historical revenue and net income:

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The analysis on Old Republic reports that the company’s revenue was in decline over the past year, its financial strength is poor and its Altman Z-Score is in distress, which implies that bankruptcy is a possibility.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Old Republic International has a market cap of $3.84 billion. Its shares are currently trading at around $14.78 with a P/E ratio of 12.80, a P/S ratio of 0.80 and a P/B ratio of 1.10. The dividend yield of Old Republic stock is currently at 4.90%.

Check out Irving Kahn’s complete fourth quarter portfolio.

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