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Legendary Investor Irving Kahn's Top Five Stocks

August 08, 2014 | About:
Monica Wolfe

Monica Wolfe

133 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 added one new stock, and the guru now maintains 43 stocks valued at $687 million.

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

New York Times (NYT)

Kahn’s largest position is in the New York Times Company where he maintains 4,511,896 shares of the company’s stock. This position makes up for 10% of his total portfolio as well as 3% of the company’s shares outstanding.

Over the past quarter Kahn reduced his holdings -5.39% by selling a total of 257,065 shares. He sold these shares near the estimated average quarterly price of $15.62 per share, and since then the price per share has decreased approximately -19.8%.

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

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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 severe divergence from the reported net income.

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

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New York Times has a market cap of $1.88 billion. Its shares are currently trading at around $12.52 with a P/E ratio of 39.10, a P/S ratio of 1.30 and a P/B ratio of 2.20. The company had an annual average earnings growth of 10.80% over the past five years.

Citigroup (C)

Kahn’s second largest position is in Citigroup where he maintains 1,385,144 shares of the company’s stock. This position makes up for 9.5% of his holdings and 0.05% of the company’s shares outstanding.

Over the past quarter Kahn increased his holdings 12.35% by purchasing a total of 152,270 shares of the company’s stock. He bought these shares near the average quarterly price of $47.56 which has since then increased approximately 1.1%.

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 overvalued:

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Citigroup has a market cap of $145.71 billion. Its shares are currently trading at around $48.06 with a P/E ratio of 15.80, a P/S ratio of 1.90 and a P/B ratio of 0.70.

Merck & Co. (MRK)

The guru’s third largest holding is in Merck where he maintains 1,120,074 shares of the company’s stock. This position makes up for 9.4% of his total assets managed as well as 0.04% of Merck & Co.’s shares outstanding.

Over the past quarter Kahn decreased his position a slight -0.74% by selling 8,341 shares. He sold these shares near the estimated average quarterly price of $57.16 per share. Since then the price per share has dropped approximately -2.7%.

Irving Kahn (Trades, Portfolio)’s historical holdings as of Q2:

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The company is a global health care company that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures.

Merck & Co.’s historical revenue and earnings growth:

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

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Merck & Co has a market cap of $162.6 billion. Its shares are currently trading at around $55.64 with a P/E ratio of 36.70, a P/S ratio of 3.80 and a P/B ratio of 3.30. The dividend for Merck is at 3.10% and it had an annual average earnings growth of 2.20% over the past ten years.

Pfizer (PFE)

The guru’s fourth largest holding goes to Pfizer where he maintains 2,124,489 shares of the company’s stock. This position makes up for 9% of the Kahn Brothers’ portfolio as well as 0.03% of the company’s shares outstanding.

Over the past quarter he increased his holdings in Pfizer 0.55% by adding 11,670 shares. He bought them near the average quarterly price of $30.05 per share. Since then the price per share has dropped a -6.8%.

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 overvalued:

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Pfizer has a market cap of $178.86 billion. Its shares are currently trading at around $28.04 with a P/E ratio of 9.00, a P/S ratio of 3.70 and a P/B ratio of 2.30. The dividend yield of Pfizer stocks is 3.60%. Pfizer had an annual average earnings growth of 3.10% over the past ten years.

GuruFocus rated Pfizer the business predictability rank of 3.5-star.

New York Community Bancorp (NYCB)

The guru’s fifth largest holding is in New York Community Bancorp where he holds on to 3,725,163 shares of the company’s stock. This position of Kahn’s makes up for 8.7% of his total portfolio holdings as well as 0.84% of the company’s shares outstanding.

During the second quarter Kahn reduced his holdings -1.41% by selling a total of 53,398 shares of the company’s stock. He sold these shares near the average quarterly price of $15.63 per share, and since then the price per share has dropped -1.3%.

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

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New York Community Bancorp is a 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 $6.83 billion. Its shares are currently trading at around $15.42 with a P/E ratio of 14.40, a P/S ratio of 5.00 and a P/B ratio of 1.20. The dividend yield of this stock is currently at around 6.50%. New York Community Bancorp had an annual average earnings growth of 2.10% over the past ten years.

Check out Irving Kahn’s second quarter holdings here. Also, if you’re not already a premium or global member, try a free 7-day premium membership trial here!


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