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Bill Ackman buys Longs Drug Stores Corp., Sells Target Corp.

August 19, 2008 | About:

Bill Ackman has been making a lot of news lately on Wall Street. His contraversal views about bond insurers with Marty Whitman are widely reported. He is right, so far, making a lot of money by shorting bond insurers. These are his buys and sells during the second quarter. Bill Ackman owns 9 stocks with a total value of $2.4 billion.

Bill Ackman buys Dr Pepper Snapple Group Inc., Longs Drug Stores Corp., during the 3-months ended 07/23/2008, according to the most recent filings of his investment company, Pershing Square Capital Management, L.P.. Bill Ackman owns 9 stocks with a total value of $2.4 billion. These are the details of the buys and sells.

  • New Purchases: DPS, LDG,
  • Added Positions: WEN,
  • Reduced Positions: CBY, TGT,

For the details of Bill Ackman's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Bill+Ackman

Added: Wendy's International Inc. (WEN)

Bill Ackman added to his holdings in Wendy's International Inc. by 83.19%. His purchase prices were between $23 and $29.89, with an estimated average price of $27.1. The impact to his portfolio due to this purchase was 6.6%. His holdings were 13,087,000 shares as of 07/23/2008.

Wendy's International Inc. is primarily engaged in the business of operating developing and franchising a system of distinctive quick-service restaurants. Each Wendy's restaurant offers a relatively standard menu featuring hamburgers and filet of chicken breast sandwiches which are prepared to order with the customer's choice of condiments. Wendy's menu also includes a pita sandwich chicken nuggets chili baked and french fried potatoes prepared salads desserts soft drinks and other non-alcoholic beverages and children's meals. Wendy's International Inc. has a market cap of $2.19 billion; its shares were traded at around $24.87 with a P/E ratio of 32.30 and P/S ratio of 0.93. The dividend yield of Wendy's International Inc. stocks is 2.2%.

New Purchase: Dr Pepper Snapple Group Inc. (DPS)

Bill Ackman initiated holdings in Dr Pepper Snapple Group Inc.. His purchase prices were between $21.6 and $26.5, with an estimated average price of $24.7. The impact to his portfolio due to this purchase was 18.31%. His holdings were 21,379,268 shares as of 07/23/2008.

DR PEPPER SNAPPLE Group is one of the largest beverage companies in the Americas. They manufacture market and distribute more than 50 brands of carbonated soft drinks juices ready to drink teas mixers and other premium beverages across the United States Canada Mexico and the Caribbean. Dr Pepper Snapple Group Inc. has a market cap of $6.08 billion; its shares were traded at around $23.97 with a P/E ratio of 12.29 and P/S ratio of 1.04.

Correction:

The DPS position was a result of spin-off from CADBURY PLC (CBY)

On May 7, 2008, Cadbury Schweppes PLC (CSG) de-merged into Cadbury PLC (CBY) and Dr Pepper Snapple Group (DPS). Every 100 shares of CSG were converted into 64 shares of CBY and 12 shares of DPS.

New Purchase: Longs Drug Stores Corp. (LDG)

Bill Ackman initiated holdings in Longs Drug Stores Corp.. His purchase prices were between $38.24 and $47.42, with an estimated average price of $43.5. The impact to his portfolio due to this purchase was 0.15%. His holdings were 85,757 shares as of 07/23/2008.

Longs Drug Stores Corp. is one of the largest drug store chains in North America. Pharmacy is the cornerstone of Longs' business with script volume per day per store among the leaders in the industry. Complementing the pharmacy business are the core categories of over-the-countermedications health care products photo and photo processing cosmetics and greeting cards. Their decentralized philosophy allows store managers to enhance the product mix of their store based on customer preference in the communities they serve. Longs Drug Stores Corp. has a market cap of $2.56 billion; its shares were traded at around $71.6 with a P/E ratio of 25.35 and P/S ratio of 0.48. The dividend yield of Longs Drug Stores Corp. stocks is 1.3%.

Reduced: CADBURY PLC (CBY)

Bill Ackman reduced to his holdings in CADBURY PLC by 36%. His sale prices were between $44.4 and $54.55, with an estimated average price of $49.9. The impact to his portfolio due to this sale was -0.02%. Bill Ackman still held 22,644 shares as of 07/23/2008.

CADBURY PLC is the world's largest confectionery business with number one or number two positions in twenty of the world's fifty largest confectionery markets. It also has the largest and most broadly spread emerging markets business of any confectionery company. With origins stretching back nearly 200 years Cadbury's brands include many global regional and local favourites including Cadbury Creme Egg and Green and Black's in chocolate; Trident Dentyne Hollywood and Bubbaloo in gum; and Halls Cadbury Eclairs Bassett?s and the Natural Confectionery Company in candy. CADBURY PLC has a market cap of $87 billion; its shares were traded at around $46.4 with a P/E ratio of 147.77 and P/S ratio of 5.58. The dividend yield of CADBURY PLC stocks is 2.4%.

Reduced: Target Corp. (TGT)

Bill Ackman reduced to his holdings in Target Corp. by 18.27%. His sale prices were between $47.72 and $54.71, with an estimated average price of $52.4. The impact to his portfolio due to this sale was -6.8%. Bill Ackman still held 19,608,749 shares as of 07/23/2008.

Target Corporation operates large-store general merchandise formats including discount stores moderate-priced promotional and traditional department stores. They provide exceptional value to consumers through multiple retail formats ranging from upscale discount and moderate-priced to full-service department stores under the following names: Target Mervyn's California Dayton's Marshall Field's and Hudson's. Target Corp. has a market cap of $38.71 billion; its shares were traded at around $49.72 with a P/E ratio of 14.93 and P/S ratio of 0.61. The dividend yield of Target Corp. stocks is 1.4%.


Rating: 2.3/5 (3 votes)

Comments

forestforever
Forestforever - 6 years ago
He has been pretty smooth recently. Longs drugs was a terrific bet as well.
warelf
Warelf - 6 years ago
Surely if Bill Ackman already owned Cadbury (you reported a buy in 2007 Q1) he received the Dr. Pepper Snapple Group (DPS) shares in the spin-off from Cadbury so this is not a new buy

Please correct me if I'm wrong
warelf
Warelf - 6 years ago
Also the reduction in Cadbury shares - 36% is a direct result of the spin-off and not a "sell" as reported.

I can understand data-driven mistakes, but perhaps you might do more research before writing an article
gurufocus
Gurufocus premium member - 6 years ago
Corrected!
warelf
Warelf - 6 years ago
"On May 7, 2008, Cadbury Schweppes PLC (CSG) de-merged into Cadbury PLC (CBY) and Dr Pepper Snapple Group (DPS). Every 100 shares of CSG were converted into 64 shares of CBY and 12 shares of DPS."

Okay but this may be confusing to American investors because they never held Cadbury-Schweppes shares, they held the ADR's and 1 ADR = 4 shares of Cadbury-Schweppes.

So an American investor who previously held 100 Cadbury-Schweppes ADR's (NYSE: CSG) would receive 48 Dr Pepper Snapple Group (NYSE: DPS) shares and 64 Cadbury PLC ADR's (NYSE: CBY).

The confusion arises because DPS shares (no ADR's) are listed directly on the NYSE while CBY shares are listed on the LSE and still trade as ADR's on the NYSE. Not the CBY ADR/Share ratio is still 4:1.

To add to the confusion they don't have the same share counts. DPS has around 253.7 million shares while Cadbury has 1,352 million shares on the LSE (down from 2,114 million pre de-merger) which equates to 338 million ADR's on the NYSE
warelf
Warelf - 6 years ago
"Bill Ackman buys Dr Pepper Snapple Group Inc., Longs Drug Stores Corp., during the 3-months ended 07/23/2008, according to the most recent filings of his investment company, Pershing Square Capital Management, L.P.. Bill Ackman owns 9 stocks with a total value of $2.4 billion. These are the details of the buys and sells."

This section still needs correcting
itznuthin1
Itznuthin1 - 6 years ago
gurufocus I think your doing a great job with this website. Just thought you should know.
gurufocus
Gurufocus premium member - 6 years ago
Thank you Itznuthin1!

We are developing more features. The site will be better every day.

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