New York hedge fund manager George Soros is one of the most politically powerful individuals in the world. Much of Soros' influence on the world derives from his $14 billion personal fortune. Soros has sold these stocks aggressively recently there are good reasons.
China is experiencing its worst drought in 50 years. Europe is in the midst of its worst drought in 44 years. The U.S. has had floods of the Mississippi River, which destroyed millions of acres of crops along the river while many areas that have not flooded are experiencing drought conditions. South America is experiencing a variety of drought conditions.
Also, the monsoon season is coming up soon for Asia. Farm lands are producing less while demand increases. The sells of fertilizer increases in during devastating farming conditions but Monsanto has other problems. Argentina farmers accuse Monsanto, the world's largest seed company, of trying to monopolize production in Argentina and of effectively excluding smaller farmers from using new seed technology by demanding too much in royalty payments. Monsanto was unable to patent the original Roundup Ready soy in Argentina. The company's battle to get royalties dragged on for years now and saw court injunctions hold up Argentine soymeal shipments in European ports.
Another concern about this company’s performance has nothing to do with numbers. If you search Monsanto on Google, it will automatically recommend the most commonly searched phrase which is “Monsanto Evil.” On the first page of results are articles all published after 2010 calling the corporation evil and greedy in how they monopolize their seeds. This negative press from the public may put some extra risk that Soros is unwilling to take.
Soros started to buy this stock in early 2007 until late 2008 when he sold out after the stock price doubled during that time with about 150,000 shares. Then he started to buy this share again in mid-2009, but the stock price has only gone down from about $83 to $60 and stayed down consistently every quarter. So after five quarters of increasing in holdings of 6.5 million shares Soros is now starting to sell and has sold half of it in one quarter. Even when the stock price seems to be increase again for three consecutive quarters now, Soros is still selling every quarter.
The average dividend yield of 33 mid-cap utility company stocks are 3.4%, which is higher compared to other sectors in the U.S. Only three stocks — NRG, GEN and CVA — had no dividends in the past 12 months. The stock value constantly dropping for multiple quarters also results in losing confidence in this stock. The stock has lost 2.02% over the last year.
Soros bought 360,000 shares in early 2009 and suddenly increased to 4.6 million shares next quarter. The price went up about $2 but has been steady in 2010. Then, Soros has been steadily selling since mid-2009 when he had his max 4.6 million shares. Soros’ current 1 million shares seem like his stopping point since he held on to these for the last two quarters.
As of June 6, Covanta announced that its board of directors has approved the payment of its regular quarterly cash dividend of $0.075 per share. The payment will be made on July 6, 2011, to stockholders of record as of the close of business on June 22, 2011. Soros may continue to keep his position on this stock.
Shares shorted dropped from 16.58 million to 15.25 million shares. This change is equivalent to 2.19% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.22). The stock is a short squeeze candidate, with a short float at 17.48% (equivalent to 7.57 days of average volume). The stock has performed poorly over the last month, losing 15.59%. The stock is more than 30% below its 52-week high. The stock plunged at the beginning of March after its disappointing earnings. Also, BPZ said CFO Edward Caminos had submitted his resignation to "pursue other professional opportunities," effective June 30. The stock has lost -46.13% over the last year.
Soros made a significant sum in 2008 when he bought this stock at about $11 and sold out at about $19.5 for over half a million shares. Afterward he re-bought 10 million shares over three quarters starting at $5. Soros started selling since the price dropped in 2010 and continued to drop, so he has been consistently selling his shares with only 2.6 million shares left now. Even when the stock price increased last quarter, Soros continued to sell more shares. He does not seem to have the confidence to keep any position on this stock any longer.
Pfizer is the world’s largest drug maker by sales, but plans are to cut an additional $1 billion in yearly costs on top of nearly $3 billion in existing research and development cuts. Huge cuts in its budget by the billions over the next few years do not look good for future stock prices.
In February 2011 it was announced that it was to close its research and development facility in Kent, which employs 2,400 people. On Feb. 1, 2011, Pfizer announced that it was to pull out of its UK Research and Development center at Sandwich, Kent, with the loss of 2,400 jobs. In April 2011, Pfizer Inc. has agreed to sell their world's largest maker of hard capsules, Capsugel unit, for about $2.38 billion to private equity firm KKR & Co. The cash will be used in part for a share buyback of about $5 billion planned for 2011.
It was previously predicted that Pfizer shares will be down, but shares are up 20% year to date, though the market’s valuation may still reflect too pessimistic a judgment regarding Pfizer’s ability to stabilize and grow earnings over time. Management expects net income to grow 5% from 2010 to 2012, helped by $4-5 billion in cost reductions and revenue contributions from new products. According to management, Pfizer “remains on track” to achieve 15 to 20 regulatory submissions in 2010-12. The company recently had 12 pending US new drug applications and supplemental filings.
Soros made a loss on this stock from 2005 to 2008 with about 190,000 shares at the end. Then he started to buy it again in mid-2009. Soros’ interactions with this stock are very interesting in that he seems to always buy and sell at the relative stock prices every quarter. He has been making flawless decisions until recently when he decided to sell when the price of the stock was still growing the past two quarters. The amounts of shares that Soros buys or sells seem very drastic for price changes of no more than $2. Soros seems to believe that this stock may be more volatile than it actually is.
GAMCO Investment decreased its CVC holdings by 42% in the last quarter, but still owns 3%. The stock price has been down by 13% since March, and the downward trend is still going on. The founding family of Cablevision Systems Corp., a New York-area cable provider, has been unsuccessful in two attempts in the past five years to buy out its public shareholders.
Last quarter, cable ad revenue at CVC rose 16.1% year-over-year, which helped overall revenue grow 9.7% from the first quarter 2010. The company plans to spin off its Rainbow TV programming business, with $273 million in first quarter revenue, to shareholders. Subscriber growth continues in voice and high speed, with the company adding 40,000 and 32,000 net customers in the quarter. Strong cash flow supports shareholder-friendly share buybacks, with the company repurchasing 6.7 million shares in the first quarter, and dividends.
In 2006, Soros bought and sold out this stock in the first quarter to make a profit with 170,000 shares. Then he started to buy again in 2009 and for a full year he increased his holdings to 400,000 shares. The price of the stock has only gone up since then every quarter and Soros is deciding to start selling now, so it seems he may be uncertain about the long term value of this stock and so decides to sell now.
To see more on George Soros please go see George Soros Buys.
No. 1: Monsanto Company (MON, Financial), Weightings: 2.29% - 2,658,998 Shares
Monsanto is a global provider of technology-based solutions and agricultural products for growers and downstream customers, such as grain processors and consumers, in the agricultural markets. Monsanto Company has a market cap of $35.5 billion; its shares were traded at around $68.88 with a P/E ratio of 25.4 and P/S ratio of 3.3. The dividend yield of Monsanto Company stocks is 1.7%. Monsanto Company had an annual average earnings growth of 32.5% over the past 10 years. George Soros owns 2,658,998 shares of MON, valued as $192 million as of March 31, 2011, which accounts for 2.29% of his equity portfolio. George Soros reduced his positions in the Dec. 31, 2010 quarter by 49.54%, again in the March 31, 2011 quarter by 19.21%.China is experiencing its worst drought in 50 years. Europe is in the midst of its worst drought in 44 years. The U.S. has had floods of the Mississippi River, which destroyed millions of acres of crops along the river while many areas that have not flooded are experiencing drought conditions. South America is experiencing a variety of drought conditions.
Also, the monsoon season is coming up soon for Asia. Farm lands are producing less while demand increases. The sells of fertilizer increases in during devastating farming conditions but Monsanto has other problems. Argentina farmers accuse Monsanto, the world's largest seed company, of trying to monopolize production in Argentina and of effectively excluding smaller farmers from using new seed technology by demanding too much in royalty payments. Monsanto was unable to patent the original Roundup Ready soy in Argentina. The company's battle to get royalties dragged on for years now and saw court injunctions hold up Argentine soymeal shipments in European ports.
Another concern about this company’s performance has nothing to do with numbers. If you search Monsanto on Google, it will automatically recommend the most commonly searched phrase which is “Monsanto Evil.” On the first page of results are articles all published after 2010 calling the corporation evil and greedy in how they monopolize their seeds. This negative press from the public may put some extra risk that Soros is unwilling to take.
Soros started to buy this stock in early 2007 until late 2008 when he sold out after the stock price doubled during that time with about 150,000 shares. Then he started to buy this share again in mid-2009, but the stock price has only gone down from about $83 to $60 and stayed down consistently every quarter. So after five quarters of increasing in holdings of 6.5 million shares Soros is now starting to sell and has sold half of it in one quarter. Even when the stock price seems to be increase again for three consecutive quarters now, Soros is still selling every quarter.
No. 2: Covanta Holding Corp. (CVA, Financial), Weightings: 0.21% - 1,048,508 Shares
Covanta Holding Corporation is an internationally recognized owner and operator of large-scale energy-from-waste and renewable energy projects and a recipient of the Energy Innovator Award from the U. Covanta Holding Corp.It has a market cap of $2.45 billion; its shares were traded at around $16.21 with a P/E ratio of 29.9 and P/S ratio of 1.6. The dividend yield of Covanta Holding Corp. stocks is 1.8%. George Soros owns 1,048,508 shares of CVA, valued as $18 million as of March 31, 2011, which accounts for 0.21% of his equity portfolio. George Soros reduced his position in the Dec. 31, 2010 quarter by 45.91%, again in the March 31, 2011 quarter by 1.72%.The average dividend yield of 33 mid-cap utility company stocks are 3.4%, which is higher compared to other sectors in the U.S. Only three stocks — NRG, GEN and CVA — had no dividends in the past 12 months. The stock value constantly dropping for multiple quarters also results in losing confidence in this stock. The stock has lost 2.02% over the last year.
Soros bought 360,000 shares in early 2009 and suddenly increased to 4.6 million shares next quarter. The price went up about $2 but has been steady in 2010. Then, Soros has been steadily selling since mid-2009 when he had his max 4.6 million shares. Soros’ current 1 million shares seem like his stopping point since he held on to these for the last two quarters.
As of June 6, Covanta announced that its board of directors has approved the payment of its regular quarterly cash dividend of $0.075 per share. The payment will be made on July 6, 2011, to stockholders of record as of the close of business on June 22, 2011. Soros may continue to keep his position on this stock.
No. 3: BPZ Resources Inc. (BPZ, Financial), Weightings: 0.17% - 2,644,005 Shares
BPZ Resources is an oil and gas exploration and production company with properties in northwest Peru and Ecuador. BPZ Resources Inc. has a market cap of $474.5 million; its shares were traded at around $4.04 with and P/S ratio of 4.3. George Soros owns 2,644,005 shares of BPZ, valued as $14 million as of March 31, 2011, which accounts for 0.17% of his equity portfolio. George Soros reduced his position in the Dec. 31, 2010 quarter by 17.57%, again in the March 31, 2011 quarter by 45.15%.Shares shorted dropped from 16.58 million to 15.25 million shares. This change is equivalent to 2.19% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.22). The stock is a short squeeze candidate, with a short float at 17.48% (equivalent to 7.57 days of average volume). The stock has performed poorly over the last month, losing 15.59%. The stock is more than 30% below its 52-week high. The stock plunged at the beginning of March after its disappointing earnings. Also, BPZ said CFO Edward Caminos had submitted his resignation to "pursue other professional opportunities," effective June 30. The stock has lost -46.13% over the last year.
Soros made a significant sum in 2008 when he bought this stock at about $11 and sold out at about $19.5 for over half a million shares. Afterward he re-bought 10 million shares over three quarters starting at $5. Soros started selling since the price dropped in 2010 and continued to drop, so he has been consistently selling his shares with only 2.6 million shares left now. Even when the stock price increased last quarter, Soros continued to sell more shares. He does not seem to have the confidence to keep any position on this stock any longer.
No. 4: Pfizer Inc. (PFE, Financial), Weightings: 0.14% - 570,900 Shares
Pfizer Inc. is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier and more productive lives. Pfizer Inc. has a market cap of $167.9 billion; its shares were traded at around $20.78 with a P/E ratio of 9.4 and P/S ratio of 2.5. The dividend yield of Pfizer Inc. stocks is 3.8%. George Soros owns 570,900 shares of PFE, valued as $12 million as of March 31, 2011, which accounts for 0.14% of his equity portfolio. George Soros reduced his positions in the Dec. 31, 2010 quarter by 64.76%, again in the March 31, 2011 quarter by 32.87%.Pfizer is the world’s largest drug maker by sales, but plans are to cut an additional $1 billion in yearly costs on top of nearly $3 billion in existing research and development cuts. Huge cuts in its budget by the billions over the next few years do not look good for future stock prices.
In February 2011 it was announced that it was to close its research and development facility in Kent, which employs 2,400 people. On Feb. 1, 2011, Pfizer announced that it was to pull out of its UK Research and Development center at Sandwich, Kent, with the loss of 2,400 jobs. In April 2011, Pfizer Inc. has agreed to sell their world's largest maker of hard capsules, Capsugel unit, for about $2.38 billion to private equity firm KKR & Co. The cash will be used in part for a share buyback of about $5 billion planned for 2011.
It was previously predicted that Pfizer shares will be down, but shares are up 20% year to date, though the market’s valuation may still reflect too pessimistic a judgment regarding Pfizer’s ability to stabilize and grow earnings over time. Management expects net income to grow 5% from 2010 to 2012, helped by $4-5 billion in cost reductions and revenue contributions from new products. According to management, Pfizer “remains on track” to achieve 15 to 20 regulatory submissions in 2010-12. The company recently had 12 pending US new drug applications and supplemental filings.
Soros made a loss on this stock from 2005 to 2008 with about 190,000 shares at the end. Then he started to buy it again in mid-2009. Soros’ interactions with this stock are very interesting in that he seems to always buy and sell at the relative stock prices every quarter. He has been making flawless decisions until recently when he decided to sell when the price of the stock was still growing the past two quarters. The amounts of shares that Soros buys or sells seem very drastic for price changes of no more than $2. Soros seems to believe that this stock may be more volatile than it actually is.
No. 5: Cablevision Systems Corp. (CVC, Financial), Weightings: 0.07% - 175,861 Shares
Cablevision Systems Corp. is one of the nation's entertainment and telecommunications companies. Cablevision Systems Corp. has a market cap of $9.95 billion; its shares were traded at around $33.82 with a P/E ratio of 21.3 and P/S ratio of 1.4. The dividend yield of Cablevision Systems Corp. stocks is 1.7%. Cablevision Systems Corp. had an annual average earnings growth of 9.8% over the past 10 years. Check out the complete list of the stocks that George Soros keeps on buying George Soros owns 175,861 shares of CVC, valued as $6 million as of March 31, 2011, which accounts for 0.07% of his equity portfolio. George Soros reduced his positions in the Dec. 31, 2010 quarter by 47.45%, again in the March 31, 2011 quarter by 15.33%.GAMCO Investment decreased its CVC holdings by 42% in the last quarter, but still owns 3%. The stock price has been down by 13% since March, and the downward trend is still going on. The founding family of Cablevision Systems Corp., a New York-area cable provider, has been unsuccessful in two attempts in the past five years to buy out its public shareholders.
Last quarter, cable ad revenue at CVC rose 16.1% year-over-year, which helped overall revenue grow 9.7% from the first quarter 2010. The company plans to spin off its Rainbow TV programming business, with $273 million in first quarter revenue, to shareholders. Subscriber growth continues in voice and high speed, with the company adding 40,000 and 32,000 net customers in the quarter. Strong cash flow supports shareholder-friendly share buybacks, with the company repurchasing 6.7 million shares in the first quarter, and dividends.
In 2006, Soros bought and sold out this stock in the first quarter to make a profit with 170,000 shares. Then he started to buy again in 2009 and for a full year he increased his holdings to 400,000 shares. The price of the stock has only gone up since then every quarter and Soros is deciding to start selling now, so it seems he may be uncertain about the long term value of this stock and so decides to sell now.
To see more on George Soros please go see George Soros Buys.
