Jim Chanos Invests in Verizon and Raytheon

Guru sells holdings in Costco, Hasbro and Dollar General

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Mar 14, 2016
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Jim Chanos (Trades, Portfolio) of Kynikos Associates LP made six new buys at the end of 2015, two of which were his most noteworthy deals of the fourth quarter.

Chanos’ most significant fourth-quarter transaction was his investment in a 152,295-share stake in Verizon Communications Inc. (VZ, Financial), a telecommunications company based in New York. Chanos paid an average price of $45.45 per share in a deal that had a 3.7% impact on his portfolio.

The stake is 3.7% of Chanos’ total assets. Verizon’s leading shareholder among the gurus is James Barrow (Trades, Portfolio) with a stake of 35,692,420 shares. The stake is 0.88% of Verizon’s outstanding shares and 2.46% of Barrow’s total assets.

Verizon has a P/E of 12, a forward P/E of 12.8, a P/B of 13.6 and a P/S of 1.7. GuruFocus gives Verizon a Financial Strength rating of 7/10 and a Profitability and Growth rating of 5/10.

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Verizon sold for $52.54 per share Monday.

Chanos invested in a 53,863-share stake in Raytheon Co. (RTN, Financial), a Waltham, Massachusetts-based aerospace and defense company. Chanos paid an average price of $120.57 per share in a deal that had a 3.52% impact on his portfolio.

The stake is 0.02% of Raytheon’s outstanding shares and 3.52% of Chanos’ total assets. Barrow is Raytheon’s leading shareholder among the gurus with a stake of 11,029,095 shares. The stake is 3.69% of the company’s outstanding shares and 2.05% of Barrow’s total assets.

Raytheon has a P/E of 18, a forward P/E of 15.5, a P/B of 3.6 and a P/S of 1.6. GuruFocus gives Raytheon a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

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Raytheon sold for $121.80 per share Monday.

Chanos acquired a 51,322-share stake in Huntington Ingalls Industries Inc. (HII, Financial), a shipbuilding company based in Newport News, Virginia, for an average price of $122.85 per share. The transaction had a 3.42% impact on Chanos’ portfolio.

The stake is 0.11% of the company’s outstanding shares and 3.42% of Chanos’ total assets. Jim Simons (Trades, Portfolio) is Huntington Ingalls’ leading shareholder among the gurus with a stake of 1,488,700 shares. The stake is 3.18% of the company’s outstanding shares and 0.41% of Simons’ total assets.

Huntington Ingalls has a P/E of 16, a forward P/E of 13.3, a P/B of 4.2 and a P/S of 0.9. GuruFocus gives Huntington Ingalls a Financial Strength rating of 9/10 and a Profitability and Growth rating of 6/10.

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Huntington Ingalls sold for $132.98 per share Monday.

Chanos acquired a 64,789-share stake in Molson Coors Brewing Co. (TAP, Financial), a brewing company with offices in Denver and Montreal, for an average price of $90.34 per share. The deal had a 3.2% impact on Chanos’ portfolio.

The stake is 0.03% of the company’s outstanding shares and 3.2% of Chanos’ total assets. First Eagle Investment (Trades, Portfolio) is Molson Coors’ leading shareholder among the gurus with a stake of 3,035,112 shares. The stake is 1.42% of the company’s outstanding shares and 0.71% of First Eagle’s total assets.

Molson Coors has a P/E of 47.9, a forward P/E of 19.1, a P/B of 2.6 and a P/S of 4.8. GuruFocus gives Molson Coors a Financial Strength rating of 8/10 and a Profitability and Growth rating of 6/10.

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Molson Coors sold for $92.50 per share Monday.

Chanos invested in a 174,573-share stake in JD.com Inc. (JD, Financial), an ecommerce company based in Beijing, for an average price of $29.59 per share. The transaction had a 2.96% impact on Chanos’ portfolio.

The stake is 0.01% of JD.com’s outstanding shares and 2.96% of Chanos’ total assets. Chase Coleman (Trades, Portfolio) is JD.com’s leading shareholder among the gurus with a stake of 59,615,495 shares. The stake is 4.36% of JD.com’s outstanding shares and 15.46% of Chase Coleman (Trades, Portfolio)’s total assets.

JD.com has a forward P/E of 55.3, a P/B of 8.1 and a P/S of 1.4. GuruFocus gives JD.com a Financial Strength rating of 6/10 and a Profitability and Growth rating of 3/10.

JD.com sold for $27.74 per share Monday.

Chanos purchased a 45,725-share stake in Ishares Dow Jones US Aerospace and Defense Index Fund (ITA, Financial) for an average price of $117.02 per share. The acquisition had a 2.84% impact on Chanos’ portfolio.

The stake is 2.84% of Chanos’ total assets. Chanos is the only guru with shares of the fund in his portfolio.

Ishares Dow Jones US Aerospace and Defense Index Fund sold for $114.35 per share Monday.

Chanos sold his 1,700-share stake in Costco Wholesale Corp. (COST, Financial), an Issaquah, Washington-based membership-only warehouse retail chain, for an average price of $158.37 per share. The divestiture had a -3.51% impact on Chanos’ portfolio.

Costco’s leading shareholder among the gurus is Warren Buffett (Trades, Portfolio) with a stake of 4,333,363 shares. The stake is 0.99% of Costco’s outstanding shares and 0.53% of Buffett’s total assets.

Costco has a P/E of 29.3, a forward P/E of 24.3, a P/B of 6.1 and a P/S of 0.6. GuruFocus gives Costco a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

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Costco sold for $152.67 per share Monday.

Chanos sold his 2,800-share stake in VF Corp. (VFC, Financial), a Greensboro, North Carolina-based clothing and accessories company, for an average price of $66.2 per share. The transaction had a -3.37% impact on Chanos’ portfolio.

VF’s leading shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with a stake of 3,173,801 shares. The stake is 0.75% of VF’s outstanding shares and 1.31% of Diamond Hill’s total assets.

VF has a P/E of 23, a forward P/E of 17.8, a P/B of 5.2 and a P/S of 2.3. GuruFocus gives VF a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

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VF sold for $65.78 per share Monday.

Chanos sold his 1,200-share stake in Nordstrom Inc. (JWN, Financial), a Seattle-based fashion retailer, for an average price of $60.29 per share. The deal had a -3.03% impact on Chanos’ portfolio.

HOTCHKIS & WILEY is Nordstrom’s leading shareholder among the gurus with a stake of 1,589,394 shares. The stake is 0.86% of Nordstrom’s outstanding shares and 0.32% of HOTCHKIS & WILEY’s total assets.

Nordstrom has a P/E of 17.7, a forward P/E of 16.8, a P/B of 12.2 and a P/S of 0.8. GuruFocus gives Nordstrom a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

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Nordstrom sold for $56.06 per share Monday.

Chanos sold his 94,277-share stake in Hasbro Inc. (HAS, Financial), a toy and board game company based in Pawtucket, Rhode Island, for an average price of $73.22 per share. The divestiture had a -2.74% impact on Chanos’ portfolio.

RS Investment Management (Trades, Portfolio) is Hasbro’s leading shareholder among the gurus with a stake of 444,290 shares. The stake is 0.36% of Hasbro’s outstanding shares and 0.27% of RS Investment’s total assets.

Hasbro has a P/E of 22, a forward P/E of 18.2, a P/B of 5.9 and a P/S of 2.2. GuruFocus gives Hasbro a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.

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Hasbro sold for $78.4 per share Monday.

Chanos sold his 89,512-share stake in Dollar General Corp. (DG, Financial), a discount retail chain based in Goodlettsville, Tennessee, for an average price of $67.8 per share. The transaction had a -2.62% impact on Chanos’ portfolio.

Dollar General’s leading shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with a stake of 2,554,323 shares. The stake is 0.88% of Dollar General’s outstanding shares and 0.7% of Pioneer Investment’s total assets.

Dollar General has a P/E of 21.7, a forward P/E of 18.9, a P/B of 4.7 and a P/S of 1.3. GuruFocus gives Dollar General a Financial Strength rating of 9/10 and a Profitability and Growth rating of 8/10.

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Dollar General sold for $85.81 per share Monday.

Chanos sold his 137,397-share stake in Utilities Select Sector SPDR® ETF (XLU, Financial) for an average price of $42.97 per share. The deal had a -2.4% impact on Chanos’ portfolio.

Louis Moore Bacon (Trades, Portfolio) is the ETF’s leading shareholder among the gurus with a stake of 550,000 shares. The stake is 0.74% of Bacon’s total assets.

The ETF sold for $48.21 per share Monday.

Chanos sold his 503,796-share stake in United States Natural Gas Fund LP Unit (UNG, Financial) for an average price of $9.37 per share. The divestiture had a -2.36% impact on Chanos’ portfolio.

The fund’s leading shareholder among the gurus is John Hussman (Trades, Portfolio) with a stake of 650,000 shares. The stake is 0.8% of Hussman’s total assets.

The fund sold for $6.44 per share Monday.

Chanos sold his 28,597-share stake in Palo Alto Networks Inc. (PANW), a Santa Clara, California-based network security company, for an average price of $173.37 per share. The transaction had a -2% impact on Chanos’ portfolio.

Frank Sands (Trades, Portfolio) is Palo Alto Networks’ leading shareholder among the gurus with a stake of 3,016,786 shares. The stake is 3.41% of Palo Alto Networks’ outstanding shares and 1.37% of Sands’ total assets.

Palo Alto Networks has a forward P/E of 58.1, a P/B of 23.1 and a P/S of 11.3. GuruFocus gives Palo Alto Networks a Financial Strength rating of 8/10 and a Profitability and Growth rating of 4/10.

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Palo Alto Networks sold for $154.97 per share Monday.

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