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Freddie Mac (FRE): Down 21% Since Charles Brandes Bought In the First Quarter of 2008
Government sponsored agency Freddie Mac (FRE) purchases and guarantees residential mortgages from lenders. In May, national foreclosure filings spiked higher by 48%. The increase in foreclosures also increase market inventory, resulting in a drop in various regional home prices. This week, 30-year-fixed mortgages rates have surged to its highest in 8-months at 6.32%. Analysts suspect the increase is due to the onslaught of inflation. Other rates include 15-year-fixed rate at 5.93% compared to 5.65% from prior week, and 5-year ARM at 5.70% compared to 5.51% a week ago. Freddie set their quarterly dividend at $0.25 per share. The company recently sold $3 billion in 3-mo bills, and $3 billion in 6-mo bills. Freddie announced that they plan to raise $5.5 billion in new capital to compensate for losses in the past 6-months. First quarter of 2008, FRE widened their loss to $151 million or $0.66 per diluted share from a prior loss of $133 million or $0.35 a share. Provisions for losses for the 2008 quarter was five times more than the 2007 quarter: $1.49 billion compared to $262 million.
Charles Brandes added 24% to his Freddie Mac holdings between between $19.4 and $32.58. Other gurus also bought shares in FRE: Bill Miller, Arnold Schneider, Charles Brandes, Chuck Akre, HOTCHKIS & WILEY, Chuck Akre, David Dreman, Richard Pzena, Sarah Ketterer. David Williams sold out all his FRE holdings, while Wallace Weitz and Jean-Marie Eveillard reduced their holdings.
Freddie Mac has a market cap of $13.98 billion; its shares were traded at around $21.62 with P/S ratio of 5.98. The dividend yield of Freddie Mac stocks is 4.2%.
TempleInland Inc. (TIN): Down 21% Since John Keeley Bought In the First Quarter of 2008
Temple-Inland, Inc. (TIN) manufactures corrugated packaging and building products. As the housing market continues to lose its momentum, analysts cut Temple-Inland’s ratings from stable to negative; however, analysts expects positive earnings for the whole year. For the quarter, TIN lost $13 million compared to an earnings of $38 million in 2007. Quarterly revenue dropped 40% to $944 million from $1.32 billion.
TempleInland Inc. has a market cap of $1.3 billion; its shares were traded at around $12.22 with a P/E ratio of 1.05 and P/S ratio of 0.34. The dividend yield of TempleInland Inc. stocks is 2.9%.
HDFC Bank Ltd. (HDB): Down 27% Since Ruane Cunniff Bought In the First Quarter of 2008
HDFC Bank Limited, which is based in India, provides various financial products and services. It operates in three segments: Personal Banking, NRI Banking, and Wholesale Banking. The company made a net income of $256 million for the full 2007 year, on revenue of $1.987 billion.
HDFC Bank Ltd. has a market cap of $9.52 billion; its shares were traded at around $80.55 with a P/E ratio of 25.25 and P/S ratio of 6.94.
WellPoint Inc. (WLP): Down 21% Since Edward Owens Bought In the First Quarter of 2008
WellPoint, Inc., health insurer, spent nearly $1.1 million on lobbying in the first quarter. The company recently won a contract with Medicare, which is worth $323 million. This week health care and service stocks rose from inflation and slight drop in oil prices.
Edward Owens bought his WLP shares at around $70.10 per share. Seth Klarma, Bruce Berkowitz, David Einhorn, Jean-Marie Eveillard, Wallace Weitz, and Dodge & Cox all bought shares of WLP; George Soros and Warren Buffet kept their holdings at around 4,534 shares and 4,800,000 shares, respectively; Robert Olstein and Ron Baron sold out all their WLP holdings.
Director Ramiro G. Peru bought 1,000 shares on 3/14/08 at $47.21.
Insiders made their sells between $47.70 and $79.35: President & CEO Kenneth R. Goulet sold 15,000 shares; Director Larry C. Glasscock sold 188,224 shares; Director Sheila P. Burke sold 9,920 shares; Director William H. T. Bush sold 3,056 shares.
WellPoint Inc. has a market cap of $28.72 billion; its shares were traded at around $55.28 with a P/E ratio of 10.10 and P/S ratio of 0.47.
Regions Financial Corp. (RF): Down 33% Since Richard Snow Bought In the First Quarter of 2008
Regions Financial Corporation, the holding company for Regions Bank, has cut 234 jobs in its Cordova operation, since a year ago. Large banks in the U.S. continue to bear losses; analysts warned losses had doubled within the past two years—the biggest banks will be hit with $79 billion in credit losses this year alone. In the past 12 months, sub-prime mortgage write-offs totaled $400 billion in the finance sector. Regions Financial were among the largest decliners in stock price.
Insiders bought between $19 and $20 since January: SVP G. Timothy Laney bought 10,195 shares; Director Lee J. Styslinger III bought 10,000 shares; and finally Directors Claude B. Nielsen and David J. Cooper each bought 3,000 shares.
Regions Financial Corp. has a market cap of $10.01 billion; its shares were traded at around $14.34 with a P/E ratio of 8.07 and P/S ratio of 1.51. The dividend yield of Regions Financial Corp. stocks is 9.8%.