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Weekly Guru Bargains Highlights: Hansen Natural Corp., Mechel OAO, Health Net Inc., Continental Airlines Inc., First Horizon National Corp.

May 24, 2008 | About:

This month, oil prices hit a new high $130 a barrel. Stock prices fall with energy prices rising. These stocks are down since Gurus bought. Related Companies: Hansen Natural Corp. (HANS), Mechel OAO (MTL), Health Net Inc. (HNT), Continental Airlines Inc. (CAL), First Horizon National Corp. (FHN).

Hansen Natural Corp. (HANS): Down 29% Since Jean-Marie Eveillard Bought In the First Quarter of 2008

Beverage distributor Hansen Natural Corporation (HANS) increased their first quarter profits 43% from robust sales, especially from its energy drink Monster. The company’s profits totaled $28.8 million or $0.29 compared to $20.2 million or $0.21 in the previous year. Revenue was up 28% at $212.2 million.

Jean-Marie Eveillard nearly doubled his HANS holdings to 550,680 shares, while Ken Heebner sold out his shares. Jean-Marie Eveillard purchase prices were between $34.67 and $43.82, with an estimated average price of $40.20.

Natural Corp. has a market cap of $2.66 billion; its shares were traded at around $28.46 with a P/E ratio of 17.87 and P/S ratio of 2.80.

Mechel OAO (MTL): Down 49% Since Ken Heebner Bought In the First Quarter of 2008

Late March, the Russian steel and mining company Mechel OAO (MTL) purchased Ductil Steel of Romania for $221 million. Also, the company recently signed a 12-month $1.5 billion loan to buy the iron-alloy company Oriel Resources.

Ken Heebner upped his holdings to 920,000 shares; he bought between $85.1 and $137.24. George Soros sold out all his MTL holdings in the quarter that ended on 3/31/08.

Mechel OAO has a market cap of $7.84 billion; its shares were traded at around $56 with a P/E ratio of 8.37 and P/S ratio of 1.32.

Health Net Inc. (HNT): Down 32% Since Bruce Berkowitz Bought In the First Quarter of 2008

Health Net, Inc. (HNT) delivers managed health care services through health plans and government sponsored managed care plans. The health insurer lost $35.7 million or $0.33 a share for the first quarter, compared to a previous profit of $88.6 million or $0.77 a share. The quarterly loss was due to lawsuit charges, increasing medical costs, and restructuring expenses. Health net lowered their outlook for 2008 to between $3.45 and $3.55 a share.

Bruce Berkowitz bought 2,384,800 shares around $43.40 a share. Other gurus also own Health Net: Edward Owens, Richard Snow, Kenneth Fisher, and Bill Miller.

Insider sells were made in February by President Stephen Lynch, who sold 33,000 shares; Director Frederick C Yeager sold 1,000 shares; and Director Bruce G. Willison, who sold 606 shares.

Health Net Inc. has a market cap of $3.27 billion; its shares were traded at around $29.33 with a P/E ratio of 49.35 and P/S ratio of 0.22.

Continental Airlines Inc. (CAL): Down 33% Since David Tepper Bought In the First Quarter of 2008

Air carrier Continental Airlines, Inc (CAL) reported first quarter loss as fuel skyrockets. For the quarter, fuel prices rose 53%, which cost $364 million. Continental lost $80 million or $0.80 a share compared to prior profit of $22 million or $0.21 a share, although revenue increased 12.3% to $3.57 billion. The company plans to remove 14 planes out of service within the next 12 months and reduce domestic capacity by 5%.

David Tepper bought 35,000 shares at an average price of $24.40, between $19.08 and $30.08 a share.

Continental Airlines Inc. has a market cap of $1.43 billion; its shares were traded at around $16.35 with a P/E ratio of 4.30 and P/S ratio of 0.11.

First Horizon National Corp. (FHN): Down 46% Since HOTCHKIS & WILEY Bought In the First Quarter of 2008

First Horizon National Corporation (FHN) operates as a holding company for First Tennessee Bank National Association. The company’s quarterly profit declined nearly 90% to $7.9 million or $0.06 a share, compared to $70.5 million or $0.55 a share. FHN put aside $240 million for write-downs in the first quarter, which nearly doubled compared to $156.5 million in the fourth quarter. First Horizon shares recently plunged to a 52-week low.

HOTCHKIS & WILEY upped his First Horizon National holdings to 4,828,900 shares—which were purchased between $14.75 and $21.86.

Director R. Brad Martin bought 500 shares on 11/27/07 at the average price of $20.67.

First Horizon National Corp. has a market cap of $1.18 billion; its shares were traded at around $9.4 with P/S ratio of 0.80. The dividend yield of First Horizon National Corp. stocks is 7.9%.


Rating: 3.8/5 (11 votes)


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