Manning & Napier Advisors are currently holding a portfolio composed of 369 stocks with a total value of $21,139 Mil.
They currently hold stocks that feature very high yields as you can see from their portfolio page on GuruFocus, but at the end of April, they decided to heavily reduce their stake of Peabody Energy Corp (BTU).
They reduced their position by 88.92%, selling 22,665,517 shares, (an impact of 0.66% on portfolio’s value) while until the last quarter (2015 Q1) they increased their position, against a stock price that was declining.
They are now holding 3,683,350 shares at an average price of $14.15/share with a total loss of about 70%, the same loss they had with this sale.
As previously said, BTU according to high yield dividend stocks page is the second preferred stock held by a very great number of Gurus, 14 in total, that pay high dividend. The yield is now at 5.90% with a 10 year growth rate of 9.00%.
The company is a private-sector coal company and it owns interests in 30 coal mining operations, including a majority interest in 29 coal operations located in the United States and Australia. The company's operations consist of four principal segments: three mining segments and one Trading and Brokerage segment.
The price during the last 12 months tanked by 76% and is now -77% from its 52-Week High and +4.55% from its 52-Week Low.
Returns are at worst levels compared to history and are negative (ROE of -27%, ROA of -6% and ROC of -1%). Even profitability is at its historical lows, with a cash to debt of 0.10 and an equity to asset of 0.19
Gregory Boyce, Chairman and Chief Executive Officer is positive about 2015 and sees growth in coal demand.
In 2015, we forecast that seaborne metallurgical coal demand growth will outpace supply increases for the first time since 2011. This is based on a moderate rise in global steel production along with Australian metallurgical coal export growth that will be offset by supply reductions from the U.S. and Canada. Drilling down on metallurgical coal demand, Indian imports grew nearly 20% in 2014 and are expected to continue to rise as the economy grows and infrastructure continues to be buildout. In China, metallurgical coal import demand is expected to stabilize as the year progresses. And over time Chinese seaborne demand is anticipated to expand as domestic production is rationalized and greater amounts of high quality coal imports are required.
