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Weekly Guru Bargains Highlights:Valero Energy Corp., CBS Corp., Goldman Sachs Group Inc., American International Group Inc., Office Depot Inc.

April 17, 2008 | About:

Challenging stock market reward those who do deep research, punishes those who don’t. These stocks have declined in prices after Gurus bought. Are these bargains? Related Companies: Valero Energy Corp. (VLO), CBS Corp. (CBS), Goldman Sachs Group Inc. (GS), American International Group Inc. (AIG), Office Depot Inc. (ODP).

Valero Energy Corp. (VLO): Down 29% Since Robert Olstein Bought In the Last Quarter of 2007

Crude prices topped $108 late-March as oil inventory report showed up short. Shares of the refiner Valero Energy Corp. (VLO) slipped nearly 30% since January of 2008. The company recently acquired a $397.4 million contract with the Defense Department to deliver aviation fuel. Valero expects its first quarter’s earnings to be between $0.10 and $0.35 per share, which is much lower than the expected $0.95 per share. First quarter’s performance are also affected by plant shut-downs, costing $400 million. By 2011, Valero Energy plans to invest $2.4 billion to expand the output of its Port Arthur refinery from 325 to 415 thousand barrels per day.

Robert Olstein bought 415,700 shares between $64.97 and $73.21. Other gurus also own Valero: David Dreman, T Boone Pickens, and Kenneth Fisher.

Chairman of the Board, CEO, and Director William R. Klesse sold 100,000 shares of VLO stock on 3/10/08 at $52.32 and EVP S. Eugene Edwards sold 18,455 shares on 12/20/07 at $69.94.

Valero Energy Corp. has a market cap of $25.96 billion; its shares were traded at around $51.68 with a P/E ratio of 5.82 and P/S ratio of 0.27. The dividend yield of Valero Energy Corp. stocks is 1%.

CBS Corp. (CBS): Down 24% Since Richard Aster Jr. Bought In the Last Quarter of 2007

Mass media company CBS Corporation’s fourth quarter earnings narrowed 15% to $286 million or $0.42 per share compared to $335 million or $0.43 per share on a 3% revenue drop to $3.76 billion. Shares of CBS stock have tumbled to a 52-week low on soft TV and radio revenue. TV revenue dropped 4% to $2.46 billion and radio revenue dropped 7%.

Richard Aster Jr. bought 29,400 shares between $26.15 and $29.61. David Dreman and Michael Price also bought shares of CBS Corp. Jean-Marie Eveillard, Richard Pzena, Brian Rogers, John Rogers, and NWQ Managers kept their holdings in CBS about the same.

While Director Linda M. Griego bought 6,000 shares on 11/07/07 at $27.34, EVP Louis J. Briskman sold 124,351 shares on 11/26/07 at $26.33.

CBS Corp. has a market cap of $14.22 billion; its shares were traded at around $21.24 with a P/E ratio of 12.30 and P/S ratio of 1.01. The dividend yield of CBS Corp. stocks is 4.7%.

Goldman Sachs Group Inc. (GS): Down 21% Since Mark Hillman Bought In the Last Quarter of 2007

Investment firm Goldman Sachs Group, Inc. reported first quarter net income drop by 53% to $1.51 billion or $3.23 per share. Shares of Goldman Sachs Group have declined around 20% since earlier in January on heavy write-downs in the financial industry. The company reduced costs by cutting 5% of its workforce or 1,500 jobs last year.

Several gurus made changes to their holdings in Goldman Sachs: George Soros bought 2,695 shares; Robert Olstein bought 122,800 shares; Mark Hillman bought 313,576 shares; John Keeley reduced his GS holdings to 2,600 shares; Ronald Muhlenkamp and Richard Pzena both sold out their GS holdings. Other gurus kept their shares unchanged: Kenneth Fisher, Bill Miller, Tom Gayner, Chuck Akre, and Chris Davis.

As of late-October, Insider sells were made between $172.61 and $234.94: CFO David A. Viniar sold 20,000 shares; President Jon Winkelried sold 70,000 shares; EVP Gregory K. Palm sold 50,000 shares; and Vice Chairman Michael S. Sherwood sold 7,302 shares.

Goldman Sachs Group Inc. has a market cap of $74.46 billion; its shares were traded at around $169.05 with a P/E ratio of 7.94 and P/S ratio of 1.56. The dividend yield of Goldman Sachs Group Inc. stocks is 0.8%.

American International Group Inc. (AIG): Down 25% Since David Dreman Bought In the Last Quarter of 2007

In the fourth quarter, insurance and financial provide American International Group, Inc. (AIG) lost $5.3 billion or $2.08 per share compared to a gain of $3.4 billion or $1.31 per share from the previous year, on weak U.S. real estate investments. The company expects India’s Mutual Fund industry to grow over 30% in 2008. In March, AIG carried a suit against ex-CEO Maurice Greenberg for pocketing $20 million in company stock.

David Dreman purchased 17,010 shares between $52.84 and $67.85. As David Dreman, David Swensen, Kenneth Fisher, Dodge & Cox, Bill Miller, Brian Rogers, and Tom Gayner recently bought shares of AIG, David Tepper, Robert Olstein, and John Keeley sold out their holdings in AIG.

Director Fred Langhammer bought 30,000 shares of AIG stock in November between $51.60 and $55.44. Also, Director James F. Orr III bought 5,000 shares at $55.60 and Director Stephen L. Hammerman bought 1,000 shares at $55.50.

EVP Robert Michael Sandler sold 17,047 shares on 12/06/07 at $59.43 and 10% Owner Edwards E. Matthews sold 56,250 shares on 11/26/07 at $52.76.

American International Group Inc. has a market cap of $111.26 billion; its shares were traded at around $44.11 with a P/E ratio of 18.49 and P/S ratio of 0.99. The dividend yield of American International Group Inc. stocks is 1.8%.

Office Depot Inc. (ODP): Down 38% Since Joel Greenblatt Bought In the Last Quarter of 2007

Office Depot, Inc. (ODP) slashed quarterly earnings to $19 million or $0.07 per diluted share compared to $127 million or $0.45 per diluted share from 2006, on decline in domestic sales and higher operating expenses. Shares of the office supply retailer are at its two-year low, compared to over $40 per share in January of 2007.

Joel Greenblatt bought 368,000 shares between $13.09 and $22.16, as Arnold Van Den Berg sold out his holdings. Also, Mason Hawkins and Robert Olstein current owns Office Depot shares.

Evidently, Office Depot, Inc. share prices got hit with all retailers. Interestingly, it is the only stock Joel Greenblatt bought over a long time.

Director Marsha Johnson Evans bought 5,000 shares on 11/21/07 at $16.69, while EVP David C. Fannin sold 5,156 shares at $11.20 to $11.36 since early-March.

Office Depot Inc. has a market cap of $3.07 billion; its shares were traded at around $11.35 with a P/E ratio of 7.91 and P/S ratio of 0.19.

Rating: 3.8/5 (4 votes)


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