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John Rogers Selling Wilmington Trust (WL) While Adding to Northern Trust Corp. (NTRS) and City National Bank (CYN)

May 29, 2009 | About:

On Friday, May 29, 2009, John Rogers said at the final session of the Morningstar Investment Conference that he has adjusted his banking holdings, selling Banco Popular and Wilmington Trust (WL) while adding to Northern Trust Corp. (NTRS) and City National Bank (CYN). Justifying his investment calls, he said “"You focus more on the businesses you believe in the most and scale out of the ones you don't think have so much upside", according to forxbusiness.com.

In the same meeting, he said he is now more concerned about a company's balance sheet than he was before, and that even though he would stress-test his companies, today he applies tougher tests to see if they can withstand worse markets than typically have been expected. He added that he's "even more aggressive" about telling management at companies that they shouldn't look to grow through acquisitions and taking on debt. .....

GuruFocus Data shows that about 27% of John Rogers’s stock holdings are in Financials.

Wilmington Trust (WL)

Wilmington Trust Corporation is a financial services holding company that provides wealth management and specialized corporate services to clients throughout the United States and in more than eighty five other countries and commercial banking services throughout the Delaware Valley region.

Wilmington Trust Corp. has a market cap of $988.6 million; its shares were traded at around $14.41 with a P/E ratio of 13 and P/S ratio of 1.1. The dividend yield of Wilmington Trust Corp. stocks is 4.9%. Wilmington Trust Corp. had an annual average earning growth of 4.9% over the past 10 years. GuruFocus rated Wilmington Trust Corp. the business predictability rank of 3-star.

John Rogers bought into WL in 3Q08 when the stock was around $29 per share. He had over two million shares on September 30, 2008. He reduced his position in half during 4Q08 to about 1.1 million shares. GuruFocus Data shows he has sold out the position by March 31, 2009.

Northern Trust Corp. (NTRS)

Northern Trust Corp. is a multi-bank holding company with worldwide locations and is a provider of treasury management, master trust custody, retirement risk and performance, international and investment management services for corporations, large institutions and individuals. Northern Trust Corp. has a market cap of $12.81 billion; its shares were traded at around $57.65 with a P/E ratio of 20.7 and P/S ratio of 2.9. The dividend yield of Northern Trust Corp. stocks is 1.9%. Northern Trust Corp. had an annual average earning growth of 6.9% over the past 10 years. GuruFocus rated Northern Trust Corp. the business predictability rank of 2.5-star.

John Rogers has been trading in and out this bank holding company since 1999. He held as much as 10.6 million shares back in 2Q05 but has been distributing the shares since then. GuruFocus Data recently reported that he reduced his holdings from 0.9 million shares to 0.7 million shares during the first quarter of 2009. With today’s announcement, maybe his holding in the company is in the up swing.

City National Bank (CYN)

City National Corporation conducts its operations through its primary subsidiary City National Bank. Through its subsidiary the company conducts business in Southern and in Northern California. City National Corp. has a market cap of $1.78 billion; its shares were traded at around $36.57 with a P/E ratio of 21.4 and P/S ratio of 1.7. The dividend yield of City National Corp. stocks is 1.1%. City National Corp. had an annual average earning growth of 9.2% over the past 10 years. GuruFocus rated City National Corp. the business predictability rank of 5-star.

John Rogers started to hold some CYN since or before 2Q06 when the stock was at around $65 per share. His ownership peaked in 2Q08 when he had 6.6 million shares but he hs been selling since then. [url= http://www.gurufocus.com/StockBuy.php?symbol=CYN] GuruFocus data[/url] shows that in 1Q09, he actually reduced his holding from 3.27 million shares to 3.03 million shares, still making his top 10 holding list. Once again, if his announcement today pertains to recent event, he has changed his heart on CYN and started to accumulate the banking company instead of distributing it.


Rating: 2.7/5 (7 votes)

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