Weekly Guru Bargains Highlights: Palm Inc, PDL BioPharma Inc, KB Home, AirTran Holdings Inc, Owens & Minor Inc.

Weekly Guru Bargains Highlights: PALM, PDLI, KBH, AAI, OMI

Author's Avatar
Dec 05, 2009
Last week’s top five guru bargain stocks were Palm Inc, PDL BioPharma Inc, KB Home, AirTran Holdings Inc, and Owens & Minor Inc. According to GuruFocus updates, these stocks have declined the most since Gurus have bought.


Palm Inc. (PALM, Financial): Down 20% Since Richard Perry Bought In the Quarter Ended on 2009-09-30


Richard Perry added to his holdings in Computer Hardware company Palm Inc. by 225% during the quarter ended 09/30/2009. He owned 5,200,000 shares of as of 09/30/2009. Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company has a market cap of $1.9 billion; its shares were traded at around $11.73 with and P/S ratio of 2.5.


Palm Inc. recently said that it would report its second quarter fiscal year results on December 17. For the first quarter of the year, the company announced total revenues were $68.0 million. Gross profit was ($2.8) million, and gross margin was (4.1) percent. These results include the effects of subscription accounting applied to Palm webOS products as required by GAAP.(1) In accordance with this methodology, revenues and direct cost of revenues for Palm webOS products (currently Palm(R) Pre(TM) smartphone) are deferred and recognized over the product's estimated economic life.


Richard Perry owns 5,200,000 shares as of 09/30/2009, an increase of 225% from the previous quarter. John Griffin owns 2,377,775 shares as of 09/30/2009, an increase of 74.1% from the previous quarter. This position accounts for 0.94% of the $4.42 billion portfolio of Blue Ridge Capital. Andreas Halvorsen owns 101,798 shares as of 09/30/2009, which accounts for 0.02% of the $7.83 billion portfolio of Viking Global Investors LP. Jean-Marie Eveillard owns 380 shares as of 06/30/2009, which accounts for less than 0.01% of the $10.76 billion portfolio of Arnhold & S. Bleichroeder Advisers, LLC. Lee Ainslie owns 6,416,948 shares as of 09/30/2009, a decrease of 22.31% of from the previous quarter. This position accounts for 1.35% of the $8.32 billion portfolio of Maverick Capital. Jean-Marie Eveillard sold out his holdings in the quarter that ended on 09/30/2009.


Insiders have both increased and decreased their positions in the company.


PDL BioPharma Inc. (PDLI, Financial): Down 25% Since George Soros Bought In the Quarter Ended on 2009-09-30


George Soros added to his holdings in Biotechnology company PDL BioPharma Inc. by 345.36% during the quarter ended 09/30/2009. He owned 81,500 shares of as of 09/30/2009. Protein Design Labs Inc. is a biopharmaceutical company focused on the research, development and commercialization of novel therapies for inflammation and autoimmune diseases, acute cardiac conditions and cancer. PDL has a market cap of $761.3 million; its shares were traded at around $6.37 with a P/E ratio of 5 and P/S ratio of 2.5. The dividend yield of Pdl Biopharma Inc. stocks is 15.6%.


PDL Biopharma recently announced revenue guidance for the fourth quarter ended December 31, 2009 of approximately $57 million, as compared with $69 million for the fourth quarter of 2008. Included in fourth quarter 2008 results was the first of two installment payments of $12.5 million from Alexion. Also included in fourth quarter 2008 results was a one-time $1.8 million payment from Genentech for the exercise of options to four additional antigens and extension of the option period for two antigens under its license agreement with PDL.


David Dreman bought 351,800 shares in the quarter that ended on 09/30/2009, which is 0.07% of the $3.85 billion portfolio of Dreman Value Management. George Soros owns 81,500 shares as of 09/30/2009, an increase of 345.36% from the previous quarter. This position accounts for 0.01% of the $4.41 billion portfolio of Soros Fund Management LLC.


Seth Klarman sold out his holdings in the quarter that ended on 09/30/2009.


Buy:: Director Jody S Lindell bought 3,000 shares of PDLI stock on 06/15/2009 at the average price of 7.76, the price of the stock has decreased by 17.91% since. Other insiders have also increased their positions in the company.


KB Home (KBH, Financial): Down 18% Since Arnold Schneider Bought In the Quarter Ended on 2009-09-30


Arnold Schneider initiated holdings in Home Construction company KB Home during the quarter ended 09/30/2009. He owned 291,725 shares of as of 09/30/2009. KB Home is a builder of single-family homes with domestic operations in several western states, and international operations in France. Domestically, the company builds innovatively designed homes which cater primarily to first-time homebuyers, generally in medium-sized developments close to major metropolitan areas. Internationally, the company also builds commercial projects and high density residential properties such as condominium complexes. Kb Home has a market cap of $1.2 billion; its shares were traded at around $13.6 with and P/S ratio of 0.4. The dividend yield of Kb Home stocks is 1.8%.


KB Home recently announced financial results for the third quarter 2008. Revenues totaled $458.5 million, down 33% from $681.6 million in the third quarter of 2008, due to lower housing revenues. The Company generated a net loss of $66.0 million, or $.87 per diluted share, in the third quarter of 2009. In the 2008 third quarter, the Company reported a net loss of $144.7 million, or $1.87 per diluted share.


Arnold Schneider bought 291,725 shares in the quarter that ended on 09/30/2009, which is 0.27% of the $1.81 billion portfolio of Schneider Capital Management. Charles Brandes owns 264,220 shares as of 09/30/2009, which accounts for 0.02% of the $21.32 billion portfolio of Brandes Investment.


Buy:: EVP and CFO Raymond Silcock bought 30,000 shares of KBH stock on 10/14/2009 at the average price of 15.69, the price of the stock has decreased by 13.32% since.


AirTran Holdings Inc. (AAI, Financial): Down 21% Since Bruce Kovner Bought In the Quarter Ended on 2009-09-30


Bruce Kovner initiated holdings in Airlines company AirTran Holdings Inc. during the quarter ended 09/30/2009. He owned 209,952 shares of as of 09/30/2009. AirTran Holdings, Inc., through its wholly owned subsidiary, AirTran Airlines, Inc. (formerly known as ValuJet Airlines, Inc.), operates airline serving short haul markets primarily in the eastern United States. The Company has a market cap of $619.9 million; its shares were traded at around $5.16 with a P/E ratio of 10.6 and P/S ratio of 0.2. Airtran Holdings Inc. had an annual average earning growth of 15.5% over the past 5 years.


Arnold Schneider owns 1,245,950 shares as of 09/30/2009, which accounts for 0.43% of the $1.81 billion portfolio of Schneider Capital Management. Ken Heebner sold out his holdings in the quarter that ended on 09/30/2009.


Sell:: 10% Owner Investment Partners Lp Par sold 42,900 shares of AAI stock on 09/28/2009 at the average price of 6.51, the price of the stock has decreased by 20.74% since. Sell:: 10% Owner Investment Partners Lp Par sold 44,316 shares of AAI stock on 09/25/2009 at the average price of 6.5, the price of the stock has decreased by 20.62% since.


Owens & Minor Inc. (OMI, Financial): Down 12% Since Andreas Halvorsen Bought In the Quarter Ended on 2009-09-30


Andreas Halvorsen added to his holdings in Drug Retailers company Owens & Minor Inc. by 418.05% during the quarter ended 09/30/2009. Owens & Minor, Inc. is one of the nation's largest distributors of national name brand medical/surgical supplies. It has a market cap of $1.63 billion; its shares were traded at around $39.06 with a P/E ratio of 14.5 and P/S ratio of 0.2. The dividend yield of Owens & Minor Inc. stocks is 2.4%. Owens & Minor Inc. had an annual average earning growth of 3.2% over the past 10 years. GuruFocus rated Owens & Minor Inc. the business predictability rank of 2.5-star.


Owens and Minor recently reported its fourth quarter cash dividend per share. The company announced that its board of directors has approved the payment of the fourth quarter 2009 cash dividend in the amount of $0.23 per share. The cash dividend is payable on December 31, 2009, to shareholders of record as of December 15, 2009.


David Dreman bought 226,661 shares in the quarter that ended on 06/30/2009, which is 0.32% of the $3.85 billion portfolio of Dreman Value Management. Andreas Halvorsen owns 1,694,734 shares as of 09/30/2009, an increase of 418.05% from the previous quarter. This position accounts for 0.98% of the $7.83 billion portfolio of Viking Global Investors LP. David Dreman owns 474,069 shares as of 09/30/2009, an increase of 109.15% from the previous quarter. This position accounts for 0.56% of the $3.85 billion portfolio of Dreman Value Management.


Sell:: President & CEO Craig R Smith sold 18,000 shares of OMI stock on 09/02/2009 at the average price of 44.64, the price of the stock has decreased by 12.5% since. Many other insiders have also decreased their positions in the company.