As oil prices stays in the mid - nineties per barrel, credit card debts become the new ailment in the financial industry, while sub - prime mortgages continue to hurt. Opportunities present for bargain hunters from the financial stocks that Gurus have bought and the prices came down.
Citigroup Inc. (C, Financial): Down 31% Since John Keeley Bought In the Third Quarter
John Keeley added to his holdings in Banks Company Citigroup Inc. at prices between $45.48 and $51.91, he currently owns 192,369 shares. His position accounts for 0.1% of the $8.95 billion portfolio of Keeley Fund Management.
Gurus Ken Heebner and Arnold Schneider both bought Citigroup stock: 620,000 shares, and 1,746,000 shares, respectively. Guru Edward Lampert increased his stock by 62.74% to 24,808,083 shares, which is 7.7% of the $16.53 billion portfolio of ESL Investments. Both Marie Eveillard and Charles Brandes increased their ownership of Citigroup shares. Guru George Soros made no changes to his (21,656 shares) 0.04% of Citigroup holdings in the $3.15 billion portfolio of Soros Fund Management LLC; while, Guru David Dreman reduced his ownership of Citigroup stock by 32.08% to 1,431,525 shares in his $19.55 billion portfolio of Dreman Value Management. There are sixteen other gurus who made no changes to their portfolio: Charles Brandes, Mark Hillman, John Rogers, Richard Pzena, NWQ Managers, Tom Gayner, Bruce Berkowitz, Chris Davis, Wallace Weitz, Bill Miller, Bill Nygren, Robert Olstein, Dodge & Cox, Kenneth Fisher, Ruane Cunniff, Irving Kahn, and Ronald Muhlenkamp.
Citigroup Inc. has a market cap of $169.71 billion; its shares were traded at around $33.1 with P/E ratio of 9.17 and P/S ratio of 1.91. The dividend yield of Citigroup Inc. stocks is 6.5%.
According to analysts'estimates, sub - prime mortgage losses might be as much as $400 billion in the Citigroup write - offs this year alone in the credit - crisis.
Mizuho Financial Group Inc. (MFG, Financial): Down 26% Since Charles Brandes Bought In the Third Quarter
Charles Brandes increased his holdings to in Banks Company Mizuho Financial Group Inc. by 68.05%; his purchase prices were between $10.64 and $14.11. Currently Brandes owns 48,418,629 shares.
Mizuho Financial Group, Inc., through its subsidiary banks, provides various financial services, including banking, securities, and trust and asset management services in Japan and internationally. Mizuho Financial Group Inc. has a market cap of $ 53.9 billion; its shares were traded at around $9.28 with P/E ratio of 13.6.
MFG is one of the three banking giants of Japan, and also the second - largest public traded lenders. Since summer, the credit industry has turned sour, while investors made waves of financial stock sells. This month, MFG posted a sub - prime mortgage loss of 100 billion yen. As a result, MFG might decide to delay their merge with Shinko Securities Co.
Freddie Mac (FRE, Financial): Down 30% Since Charles Brandes Bought In the Third Quarter
Charles Brandes added to his holdings in Mortgage Finance Company Freddie Mac to 450,429 shares at prices between $55.23 and $63.16 per share. Arnold Schneider and Richard Pzena also increased their FRE holdings by 20.91% and 10.61%. David Dreman kept his 12,954,210 shares unchanged; Dreman holdings account for 4.02% of the $19.55 billion portfolio of Dreman Value Management. Four other gurus kept their positions the same: Chuck Akre, Wallace Weitz, HOTCHKIS & WILEY, and NWQ Managers.
Freddie Mac has a market cap of $26.03 billion; its shares were traded at around $41.70 with P/S ratio of 9.46. The dividend yield of Freddie Mac stocks is 4.8%.
Early November, the U.S. Reserve cut the federal funds rate for a second time by 0.25% to 4.5%. As a result, Freddie Mac reported a decrease in mortgage rates: 30 - year - fixed dropped to 6.24%, 15 - year to 5.90%, and 5 - year ARM to 5.89%. Last Tuesday, FRE sells $5.5 billion in bills, which are due in 2008. Currently, FRE is doing their investigations on faulty appraisals with WaMu loans (see section in WaMu).
Capital One Financial Corp. (COF, Financial): Down 22% Since Brian Rogers Bought In the Third Quarter
Brian Rogers upped his ownership of the consumer finance company, Capital One Financial Corp., by 250%. His purchase price was averaged at $69.60. Rogers currently owns 1,750,000 shares of COF stock in his $23.8 billion portfolio of T Rowe Price Equity Income Fund.
Bill Nygren bought 700,000 shares and Kenneth Fisher bought 1,815,586 shares. A few others increased their stakes from the previous quarter: Richard Pzena, who owns 6,610,060 shares, increased by 25720.6%; Robert Olstein, who owns 449,500, increased by 40.38%; and Dodge & Cox, who owns 33,259,708 shares, increased by 17.68%.
Ruane Cunniff and Bill Miller kept their shares constant - Cuniff with 772,378 shares and Miller with 4,446,000 shares.
Guru David Dreman lowered his ownership by 38.05% to 36,470 shares, and Guru Ronald Muhlenkamp lowered his by 25.5% to 1,192,296 shares. Guru Arnold Schneider sold out of all his COF stock in the second quarter.
Capital One Financial Corporation operates as the holding company for the Capital One Bank and Capital One, F.S.B, which offers various commercial banking services in the U.S. Capital One Financial Corp. has a market cap of $21.12 billion; its shares were traded at around $54.26 with P/E ratio of 12.18 and P/S ratio of 1.76. The dividend yield of Capital One Financial Corp. stocks is 0.2%.
Since August, Chairman, CEO and President of COF, Richard D. Fairbank have sold a total of 31,044 shares at $64.06 to $64.98. In May, the Chief Financial Officer, Gary L. Perlin, sold 10,600 shares at $80. Other big sells made since July: Chief Information Officer Gregor Bailar have sold 152,612 shares at $62.21 to $70.21; Chief Risk Officer Peter A. Schnall sold 7,158 shares at $66.24 to $74.47; Director Pierre E. Leroy and Larry A. Klane sold 2,400 and 3,000 shares correspondingly.
Capital One Financial Corp., as one of the major issuers of Visa cards, was part of a large lawsuit, where Visa was accused of illegally oppressing competition. Visa will pay $2.25 billion to American Express in settling a lawsuit.
Washington Mutual Inc. (WM, Financial): Down 44% Since Charles Brandes Bought In the Third Quarter
Charles Brandes purchased 12,856,011 shares of Washington Mutual Inc. stock at $33.20 and $42.05.
HOTCHKIS & WILEY increased WM by 23.46% to 7,297,692 shares. Guru David Dreman kept his 12,476,152 shares of WM the same in his $19.55 billion portfolio of Dreman Value Management. Three other gurus, with large share volumes, kept their portfolio unchanged: Bill Nygren, Ronald Muhlenkamp, and Richard Pzena.
Washington Mutual, Inc. operates as a consumer and small business banking company in the U.S. It operates in four segments: Retail Banking, Card Services, Commercial, and Home Loans. Washington Mutual Inc. has a market cap of $18.08 billion; its shares were traded at around $20.51 with P/E ratio of 6.66 and P/S ratio of 1.40. The dividend yield of Washington Mutual Inc. stocks is 10.9%.
Directors Orin Smith and Michael K. Murphy bought 10,700 and 1,500 shares, respectively, priced at $28.03 to $35.85. Alfred R. Brooks, EVP & President of the Commercial Group, sold 3,000 shares at $43.82 in May.
Early November, Andrew Cuomo, NY Attorney General, ordered Freddie Mac and Fannie Mae to investigate the WaMu mortgages closely for inflated appraisals. Any affirmation of Cuomo’s suspicion of foul play would mean a huge blow to WaMu. Also, in the lawsuit American Express versus Visa, Washington Mutual Inc. will pay $38 million, in the $2.25 billion settlement. The charges lowered the third quarter profits by $24 million, or $0.03 a share.
Citigroup Inc. (C, Financial): Down 31% Since John Keeley Bought In the Third Quarter
John Keeley added to his holdings in Banks Company Citigroup Inc. at prices between $45.48 and $51.91, he currently owns 192,369 shares. His position accounts for 0.1% of the $8.95 billion portfolio of Keeley Fund Management.
Gurus Ken Heebner and Arnold Schneider both bought Citigroup stock: 620,000 shares, and 1,746,000 shares, respectively. Guru Edward Lampert increased his stock by 62.74% to 24,808,083 shares, which is 7.7% of the $16.53 billion portfolio of ESL Investments. Both Marie Eveillard and Charles Brandes increased their ownership of Citigroup shares. Guru George Soros made no changes to his (21,656 shares) 0.04% of Citigroup holdings in the $3.15 billion portfolio of Soros Fund Management LLC; while, Guru David Dreman reduced his ownership of Citigroup stock by 32.08% to 1,431,525 shares in his $19.55 billion portfolio of Dreman Value Management. There are sixteen other gurus who made no changes to their portfolio: Charles Brandes, Mark Hillman, John Rogers, Richard Pzena, NWQ Managers, Tom Gayner, Bruce Berkowitz, Chris Davis, Wallace Weitz, Bill Miller, Bill Nygren, Robert Olstein, Dodge & Cox, Kenneth Fisher, Ruane Cunniff, Irving Kahn, and Ronald Muhlenkamp.
Citigroup Inc. has a market cap of $169.71 billion; its shares were traded at around $33.1 with P/E ratio of 9.17 and P/S ratio of 1.91. The dividend yield of Citigroup Inc. stocks is 6.5%.
According to analysts'estimates, sub - prime mortgage losses might be as much as $400 billion in the Citigroup write - offs this year alone in the credit - crisis.
Mizuho Financial Group Inc. (MFG, Financial): Down 26% Since Charles Brandes Bought In the Third Quarter
Charles Brandes increased his holdings to in Banks Company Mizuho Financial Group Inc. by 68.05%; his purchase prices were between $10.64 and $14.11. Currently Brandes owns 48,418,629 shares.
Mizuho Financial Group, Inc., through its subsidiary banks, provides various financial services, including banking, securities, and trust and asset management services in Japan and internationally. Mizuho Financial Group Inc. has a market cap of $ 53.9 billion; its shares were traded at around $9.28 with P/E ratio of 13.6.
MFG is one of the three banking giants of Japan, and also the second - largest public traded lenders. Since summer, the credit industry has turned sour, while investors made waves of financial stock sells. This month, MFG posted a sub - prime mortgage loss of 100 billion yen. As a result, MFG might decide to delay their merge with Shinko Securities Co.
Freddie Mac (FRE, Financial): Down 30% Since Charles Brandes Bought In the Third Quarter
Charles Brandes added to his holdings in Mortgage Finance Company Freddie Mac to 450,429 shares at prices between $55.23 and $63.16 per share. Arnold Schneider and Richard Pzena also increased their FRE holdings by 20.91% and 10.61%. David Dreman kept his 12,954,210 shares unchanged; Dreman holdings account for 4.02% of the $19.55 billion portfolio of Dreman Value Management. Four other gurus kept their positions the same: Chuck Akre, Wallace Weitz, HOTCHKIS & WILEY, and NWQ Managers.
Freddie Mac has a market cap of $26.03 billion; its shares were traded at around $41.70 with P/S ratio of 9.46. The dividend yield of Freddie Mac stocks is 4.8%.
Early November, the U.S. Reserve cut the federal funds rate for a second time by 0.25% to 4.5%. As a result, Freddie Mac reported a decrease in mortgage rates: 30 - year - fixed dropped to 6.24%, 15 - year to 5.90%, and 5 - year ARM to 5.89%. Last Tuesday, FRE sells $5.5 billion in bills, which are due in 2008. Currently, FRE is doing their investigations on faulty appraisals with WaMu loans (see section in WaMu).
Capital One Financial Corp. (COF, Financial): Down 22% Since Brian Rogers Bought In the Third Quarter
Brian Rogers upped his ownership of the consumer finance company, Capital One Financial Corp., by 250%. His purchase price was averaged at $69.60. Rogers currently owns 1,750,000 shares of COF stock in his $23.8 billion portfolio of T Rowe Price Equity Income Fund.
Bill Nygren bought 700,000 shares and Kenneth Fisher bought 1,815,586 shares. A few others increased their stakes from the previous quarter: Richard Pzena, who owns 6,610,060 shares, increased by 25720.6%; Robert Olstein, who owns 449,500, increased by 40.38%; and Dodge & Cox, who owns 33,259,708 shares, increased by 17.68%.
Ruane Cunniff and Bill Miller kept their shares constant - Cuniff with 772,378 shares and Miller with 4,446,000 shares.
Guru David Dreman lowered his ownership by 38.05% to 36,470 shares, and Guru Ronald Muhlenkamp lowered his by 25.5% to 1,192,296 shares. Guru Arnold Schneider sold out of all his COF stock in the second quarter.
Capital One Financial Corporation operates as the holding company for the Capital One Bank and Capital One, F.S.B, which offers various commercial banking services in the U.S. Capital One Financial Corp. has a market cap of $21.12 billion; its shares were traded at around $54.26 with P/E ratio of 12.18 and P/S ratio of 1.76. The dividend yield of Capital One Financial Corp. stocks is 0.2%.
Since August, Chairman, CEO and President of COF, Richard D. Fairbank have sold a total of 31,044 shares at $64.06 to $64.98. In May, the Chief Financial Officer, Gary L. Perlin, sold 10,600 shares at $80. Other big sells made since July: Chief Information Officer Gregor Bailar have sold 152,612 shares at $62.21 to $70.21; Chief Risk Officer Peter A. Schnall sold 7,158 shares at $66.24 to $74.47; Director Pierre E. Leroy and Larry A. Klane sold 2,400 and 3,000 shares correspondingly.
Capital One Financial Corp., as one of the major issuers of Visa cards, was part of a large lawsuit, where Visa was accused of illegally oppressing competition. Visa will pay $2.25 billion to American Express in settling a lawsuit.
Washington Mutual Inc. (WM, Financial): Down 44% Since Charles Brandes Bought In the Third Quarter
Charles Brandes purchased 12,856,011 shares of Washington Mutual Inc. stock at $33.20 and $42.05.
HOTCHKIS & WILEY increased WM by 23.46% to 7,297,692 shares. Guru David Dreman kept his 12,476,152 shares of WM the same in his $19.55 billion portfolio of Dreman Value Management. Three other gurus, with large share volumes, kept their portfolio unchanged: Bill Nygren, Ronald Muhlenkamp, and Richard Pzena.
Washington Mutual, Inc. operates as a consumer and small business banking company in the U.S. It operates in four segments: Retail Banking, Card Services, Commercial, and Home Loans. Washington Mutual Inc. has a market cap of $18.08 billion; its shares were traded at around $20.51 with P/E ratio of 6.66 and P/S ratio of 1.40. The dividend yield of Washington Mutual Inc. stocks is 10.9%.
Directors Orin Smith and Michael K. Murphy bought 10,700 and 1,500 shares, respectively, priced at $28.03 to $35.85. Alfred R. Brooks, EVP & President of the Commercial Group, sold 3,000 shares at $43.82 in May.
Early November, Andrew Cuomo, NY Attorney General, ordered Freddie Mac and Fannie Mae to investigate the WaMu mortgages closely for inflated appraisals. Any affirmation of Cuomo’s suspicion of foul play would mean a huge blow to WaMu. Also, in the lawsuit American Express versus Visa, Washington Mutual Inc. will pay $38 million, in the $2.25 billion settlement. The charges lowered the third quarter profits by $24 million, or $0.03 a share.
