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Weekly Guru Bargains Highlights: Eaton Corp., Rockwell Automation Inc., Genworth Financial Inc., MGM MIRAGE, Companhia Vale Do Rio Doce, KeyCorp

August 06, 2008 | About:
Barel Karsan

Economic slowdown has fanned worries towards investors. The decline in oil prices to below $120 per barrel underlines the decrease in consumer demand over all other markets. Is it time to plant bargain seeds for the harvest in the future? Eaton Corp. (ETN), Rockwell Automation Inc. Common (ROK), Genworth Financial Inc. (GNW), MGM MIRAGE (MGM), Companhia Vale Do Rio Doce ( RIO ), KeyCorp (KEY).

KeyCorp (KEY): Down 45% Since Brian Rogers Bought In the Quarter That Ended in June

Last week, investment banking firm KeyCorp (KEY) shares fell as analysts downgraded on an estimated earnings loss of $1.75 for the 2008 year. For the second quarter that ended in June, the company reported a loss of $1.13 billion or $2.70 a share, compared to a prior gain of $334 million or $0.84 a share. The loss is owed to $1.01 billion or $2.43 a share of tax charge from a court ruling.

Brian Rogers bought 50% more shares of KeyCorp between $11.14 and $25.06; David Dreman also increased his KEY stake by the same amount.

Chair and CEO, Director Henry L. Meyer III, Director H. James Dallas, and Vice Chair Beth E. Mooney each bought 15,000 shares late-June around $11.15 per share. Other buys were made around the same price by CFO Jeffrey B. Weeden, Director Thomas G. Stevens, and SEVP Charles S. Hyle, who bought 10,000 shares, 5,000 shares and 5,000 shares, respectively.

KeyCorp has a market cap of $5.33 billion; its shares were traded at around $10.97 with P/S ratio of 1.73. The dividend yield of KeyCorp stocks is 13.67%.

Rockwell Automation Inc. Common (ROK): Down 21% Since David Williams Bought In the Quarter That Ended in June

Rockwell Automation (ROK), industrial automation products provider, reported a 7% decline on quarterly profits, as operating expenses climbed. The company earned $152.6 million or $1.03 a share compared to $164.2 million or $1.05 a share in 2007. ROK expects earnings of $4.25 to $4.45 per share for 2008.

David Williams purchased his shares between $43.92 and $61.02. Kenneth Fisher and John Keeley also own shares in ROK.

Rockwell Automation Inc. Common has a market cap of $6.38 billion; its shares were traded at around $43.82 with a P/E ratio of 10.67 and P/S ratio of 1.16. The dividend yield of Rockwell Automation Inc. Common stocks is 2.65%.

Genworth Financial Inc. (GNW): Down 26% Since David Williams Bought In the Quarter That Ended in June

Investment insurer Genworth Financial (GNW) set their quarterly dividend at $0.10 a share. The company’s earnings declined 52% to $178 million or $0.40 per share from $373 million or $0.81 per share, on $244 million in investment losses.

David Williams upped his holdings in Full Line Insurance Company Genworth Financial Inc. by 55% to 3,100,000 shares. Genworth Financial is also owned by NWQ Managers, Arnold Schneider, HOTCHKIS & WILEY, Dodge & Cox, John Keeley, and Brian Rogers. Also, Robert Olstein sold out his holdings in the first quarter of this year.

Director James S. Riepe bought 10,000 shares in March at $21.70; Director James A. Parke bought 5,000 shares at $21.86; and Director Barrett A. Toan bought 4,000 shares in May at $22.48. Additionally, EVP Pamela S. Schutz sold 17,774 shares at $23.

Genworth Financial Inc. has a market cap of $7.06 billion; its shares were traded at around $16.31 with a P/E ratio of 13.66 and P/S ratio of 0.64. The dividend yield of Genworth Financial Inc. stocks is 2.45%.

MGM MIRAGE (MGM): Down 38% Since Brian Rogers Bought In the Quarter That Ended in June

The shares of gaming and hotel operator MGM MIRAGE tumbled to a three year low in late-June from less frequent traffic to Las Vegas. The company reported a decline in quarterly earnings to $118.3 million or $0.40 a share compared to last year’s $168.2 million or $0.57 a share. MGM will continue their construction plans for the $8.1 billion City Center project on the Las Vegas Strip.

Brian Rogers bought 4,000,000 between $34.58 and $61.20, at an average of $48.10. While John Keeley and Bruce Sherman held their MGM shares, George Soros sold out all his MGM shares in the first quarter.

Since February, Director Ronald Popeil bought 11,000 shares; Director Melvin Wolzinger bought 3,000 shares at $41.77 to $67.06.

As of February, SVPs Alan Feldman, Phyllis James, and Punam Mathur sold 16,000 shares, 10,500 shares, and 5,000 shares, correspondingly between $41.77 to $66.01 a share.

MGM MIRAGE has a market cap of $8.3 billion; its shares were traded at around $29.78 with a P/E ratio of 5.80 and P/S ratio of 1.06.

Companhia Vale Do Rio Doce ( RIO): Down 26% Since David Williams Bought In the Quarter That Ended in June

VALE RIO DO-ADR is a mining company that specializes in the mining of iron ore and pellets manganese alloys gold copper potassium and kaolin. The South American mining company recently approved $14 billion in equity offerings to fund acquisitions and expansion.

John Keeley and David Williams bought RIO shares in the past quarter, as Ken Heebner reduced his RIO holdings. George Soros, Sarah Ketterer, and Kenneth Fisher kept their shares of RIO about the same.

Companhia Vale Do Rio Doce has a market cap of $ million; its shares were traded at around $28.28. The dividend yield of Companhia Vale Do Rio Doce stocks is 0.86%.

Eaton Corp. (ETN): Down 22% Since David Williams Bought In the Quarter That Ended in June

Eaton Corporation, truck component and industrial manufacturer, slashed their 2008 earnings outlook to of $7.20 to $7.50 a share. The company’s second quarter profits jumped 35% on strong sales in aviation hydraulic and electrical products. For the quarter, Eaton earned $333 million or $2.03 a share compared to 2007’s $246 million or $1.64 a share. In the same period, revenue rose 32% to $4.28 billion from $3.25 billion.

David Williams bought 1,300,000 shares of Eaton at an average price of $88.60 a share. Richard Aster Jr. and David Dreman kept their shares about the same.

Director Christopher M. Connor bought 1,000 shares on 3/3/08 at $81.87. Chairman and CEO, President, Director Alexander M. Cutler sold a total of 138,829 shares on 5/29/08 at $92.74 to $93.05; Director Victor A. Pelson sold 9,900 shares on 5/29/08 at $94.41; CEO Scott L. King sold 7,955 shares on 6/2/08 at $95.96; and Director John R. Miller sold 3,862 shares on the same day.

Eaton Corp. has a market cap of $11.19 billion; its shares were traded at around $69.44 with a P/E ratio of 9.76 and P/S ratio of 0.79. The dividend yield of Eaton Corp. stocks is 2.88%.


Rating: 3.4/5 (10 votes)

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