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Guru Bargains with Technologies? Advanced Micro Devices Inc., Embarq Corp., EMC Corp., Motorola Inc. and LouisianaPacific Corp

April 10, 2008 | About:

From price hikes to slow sales, this is the sign of the times toward an economy under arrest. Our Gurus rarely buy technology stocks. But they own some, and these are beaten down as of recent. Related Companies: Advanced Micro Devices Inc. (AMD), Embarq Corp. (EQ), EMC Corp. (EMC), Motorola Inc. (MOT), LouisianaPacific Corp. (LPX).

Advanced Micro Devices Inc. (AMD): Down 45% Since George Soros Bought In the Last Quarter of 2007

Chip-maker Advanced Micro Devices, Inc. (AMD) plans to lay-off 10% of its employees by the third quarter of 2008, anticipating dramatically low sales below the expected $1.62 billion. AMD faced hard competition with Intel, which beat AMD last year on revenue. The company expects its first quarter revenue to be around $1.5 billion. AMD lost a total of $3.38 billion in 2007. The company’s share price is currently at its two-year low.

In the quarter that ended on 12/31/07, George Soros bought 49,000 shares between $7.32 and $13.94. While Jean-Marie Eveillard bought 40,000 shares, Kenneth Fisher kept his 219,331 shares the same.

Director Paulett Eberhart bought 3,666 shares on 11/27/07 at $10.27.

Other insiders sold shares of AMD between $6.29 and $10.68 since November: EVP Thomas M. Mccoy sold a total of 24,865 shares; SVP Rick Bergman sold 44,580 shares; and SVP Michel Cadieux sold 1,585 shares.

Advanced Micro Devices Inc. has a market cap of $3.65 billion; its shares were traded at around $6.03 with P/S ratio of 0.64.

Embarq Corp. (EQ): Down 22% Since David Dreman Bought In the Last Quarter of 2007

For 2007, the telecom company Embarq Corporation posted $1.50 billion operating income and $4.44 per diluted share on $6.37 billion revenue. The last quarter of 2007, the company had decrease in revenue at $1.58 billion. The company recently announced Tom Gerke as its new CEO.

David Dreman bought 20,060 shares at $49.12 to $56.60 per share.

Embarq Corp. has a market cap of $6.17 billion; its shares were traded at around $39.64 with a P/E ratio of 8.93 and P/S ratio of 0.96. The dividend yield of Embarq Corp. stocks is 6.7%.

EMC Corp. (EMC): Down 28% Since George Soros Bought In the Last Quarter of 2007

Data storage provider, EMC Corporation, plans to acquire competitor Iomega for $213 million at $3.85 per share. For 2007, EMC Corporation’s profit was up 43% at $1.76 billion on revenue of $13.2 billion. Toward the latter half of 2007, the company’s stock made large gains from its 10% investment in VMware.

Currently George Soros owns 19,304 shares; Kenneth Fisher owns 19,982,747; John Keeley owns 108,000 shares; Bill Miller owns 1,500,000 shares; and Steve Mandel reduced his shares to 14,278,599.

Director Edmund F. Kelly bought 10,000 shares of EMC stock on 10/26/07 at $24.43.

Since October of 2007, insiders made their sell at $19.02 to $25.17: EVP & CFO David Goulden sold 200,000 shares; President David A. Donatelli sold 339,000 shares; EVP Paul T. Dacier sold 227,811 shares; Vice Chairman William J. Teuber Jr. and President Mark S. Lewis each sold 200,000 shares; EVP John T. Mollen sold 150,000 shares; EVP Frank Hauck sold 130,136 shares; President Howard D. Elias sold 50,000 shares; and Director Windle B. Priem sold 30,000 shares.

EMC Corp. has a market cap of $31.11 billion; its shares were traded at around $14.9 with a P/E ratio of 19.23 and P/S ratio of 2.37.

Motorola Inc. (MOT): Down 42% Since Robert Olstein Bought In the Last Quarter of 2007

Motorola, Inc. will lay-off 2,600 employees and face a $104 million pre-tax charge for severance pay in the first quarter of 2008. Over the past year, the company had cut-away 10,000 jobs in an attempt to cut their losses in the cellular phone vendor business. Motorola’s fourth quarter profit dove 84% to $100 million or $0.04 per share compared to $623 million or $0.25 from 2006 on a 18% revenue drop to $9.65 billion.

Motorola is banking on a plan to separate its foundering cell phone unit from the rest of the company, as it gears up for a second straight year of proxy fights with activist financier Carl Icahn.

Robert Olstein added to his holdings in Telecom Equipment Company Motorola Inc. by 495% between $15.66 and $19.18; he currently owns 1,261,000 shares. Other gurus who own shares in Motorola: Mark Hillman, George Soros, Dodge & Cox, Arnold Schneider, Carl Icahn, Irving Kahn, John Keeley, Bill Miller, Charles Brandes, Bruce Sherman, Kenneth Fisher, and NWQ Managers. Jean-Marie Eveillard sold out all his holdings in Motorola.

EVP and Chief Technology Officer Padmasree Warrior sold 15,485 shares of MOT stock on 11/20/07 at $16.05.

Motorola Inc. has a market cap of $21.56 billion; its shares were traded at around $9.84 with P/S ratio of 0.61. The dividend yield of Motorola Inc. stocks is 2.1%.

LouisianaPacific Corp. (LPX): Down 29% Since George Soros Bought In the Last Quarter of 2007

Louisiana-Pacific Corporation, construction and building materials manufacturer, lost $38.6 million or $0.37 per share in the fourth quarter of 2007, compared to a loss of $24.6 million or $0.24 from 2006. For the full year, the company faced a large loss of $167 million or $1.61 a share on 22% drop in sales to $1.7 billion. Chief Executive Rick Frost stated, "Double digit declines in new home construction, acceleration of the mortgage crisis, and parity of the Canadian dollar to the U.S. dollar all negatively affected our operating results." For the latest quarter, the company paid $0.15 per share for divided.

George Soros bought 20,536 shares at $15.30 before December of 2007. As Charles Brandes sold out all his LPX shares, Arnold Schneider and Third Avenue Management kept their LPX shares.

LouisianaPacific Corp. has a market cap of $1.12 billion; its shares were traded at around $10.86 with P/S ratio of 0.66. The dividend yield of LouisianaPacific Corp. stocks is 5.6%.


Rating: 3.3/5 (3 votes)


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