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Steven Romick Sells Microsoft, Walgreens, CVS

FPA portfolio manager trims Microsoft stake by 20%

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Jan 20, 2016
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Steven Romick (Trades, Portfolio) sold many stocks during the fourth quarter. He is the portfolio manager of the FPA Crescent Fund and the following are the most weighted sales during the last quarter of 2015.

He reduced his stake in Microsoft Corp. (MSFT) by 20.99% with an impact of 1.46% on the portfolio. The current stake is 6.76% of the investor’s total assets.

The company generates revenue by developing, manufacturing, licensing, and supporting software products and services for different types of computing devices. During the first quarter 2016, Microsoft announced a 16% increase in its quarterly dividend and returned $6.9 billion to shareholders in the form of share repurchases and dividends.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 14.28% and ROA 7.05% that are over performing 70% of the Global Software - Infrastructure industry. Financial strength has a rating of 8 out of 10, with a cash-to-debt of 2.58 that is far below the industry median of 7.12.

The company’s largest shareholder among the gurus is Jeff Ubben (Trades, Portfolio) with 0.94% of outstanding shares, followed by Dodge & Cox with 0.94%,

PRIMECAP Management (Trades, Portfolio) with 0.75%, First Eagle Investment (Trades, Portfolio) with 0.42%, James Barrow (Trades, Portfolio) with 0.39%, Steve Mandel (Trades, Portfolio) with 0.32% and Jeremy Grantham (Trades, Portfolio) with 0.3%.

Romick reduced his stake by 74.59% in Walgreens Boots Alliance Inc. (WBA) with an impact of 1.2% on the portfolio. The current stake is 0.41% of the investor’s total assets.

The company operates a drug-store chain in the U.S. It provides consumer goods and services, pharmacy, and health and wellness services in communities across America. Adjusted third quarter net earnings per diluted share increase 22.9% compared to the same quarter of a year before, and GAAP net earnings per diluted share increased 59.5%.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with strong returns of ROE 33.37% and ROA 14% that are over performing 76% of the companies in the Global Pharmaceutical Retailers industry. Financial strength has a rating of 5 out of 10, with a cash-to-debt of 0.18 that is below the industry median of 0.48.

Andreas Halvorsen (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.16% of outstanding shares, followed by Jana Partners (Trades, Portfolio) with 1.27%, Steve Mandel (Trades, Portfolio) with 0.63%, Vanguard Health Care Fund (Trades, Portfolio) with 0.63, Bill Gates (Trades, Portfolio) with 0.32% and John Griffin (Trades, Portfolio) with 0.3%.

Romick sold out his shares in Express Scripts Holding Co. (ESRX) with an impact of 1.15% on the portfolio.

The company operates as a pharmacy benefit management in North America. It includes HMOs, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers' compensation plans and government health programs.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with positive returns of ROE 12.26% and ROA 4.34% that are over performing 64% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 8 out of 10, with a cash-to-debt of 0.03 that is far below the industry median of 1.75.

The company’s largest shareholder among the gurus is Dodge & Cox with 4.2% of outstanding shares, followed by

Chris Davis (Trades, Portfolio) with 1.36%, David Rolfe (Trades, Portfolio) with 0.85%, Jeremy Grantham (Trades, Portfolio) with 0.68%, Manning & Napier Advisors with 0.67%, Pioneer Investments (Trades, Portfolio) with 0.5% and Charles Brandes (Trades, Portfolio) with 0.31%.

Romick sold out his shares in Canadian Natural Resources Ltd. (CNQ) with an impact of 0.72% on the portfolio.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with strong returns of ROE 1.53% and ROA 0.71% that are over performing 76% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 7 out of 10, with a cash-to-debt of 0.45 that is below the industry median of 0.52.

First Eagle Investment (Trades, Portfolio) is the largest shareholder among the gurus with 2.15% of outstanding shares, followed by Bruce Berkowitz (Trades, Portfolio) with 0.89%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.7%, First Pacific Advisors (Trades, Portfolio) with 0.35 and  David Winters (Trades, Portfolio) with 0.25%.

Romick also sold out his shares in CVS Health Corp. (CVS) with an impact of 0.52% on the portfolio.

The company is an integrated pharmacy health care provider in the U.S. They have three segments: Pharmacy Services, Retail Pharmacy and Corporate. Third quarter net revenues increased 10.3% and operating profit increased 3.8% compared to the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with strong returns of ROE 13.50% and ROA 6.51% that are underperforming 69% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 8 out of 10, with a cash-to-debt of 0.11 that is far below the industry median of 1.75

The largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 0.44% of outstanding shares, followed by

PRIMECAP Management (Trades, Portfolio) with 0.31%, Vanguard Health Care Fund (Trades, Portfolio) with 0.28% and  Jeremy Grantham (Trades, Portfolio) with 0.22%.

Romick sold out his shares in Vodafone Group PLC (VOD) with an impact of 0.39% on the portfolio.

The company is a telecommunications provider. Its services include voice, data and fixed broadband. The geographic regions covered by the company include Europe and Africa, Middle East and Asia Pacific.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with negative returns of ROE 2.04% and ROA 1.11% that are underperforming 74% of the companies in the Global Telecom Services industry. Financial strength has a rating of 7 out of 10, with a cash-to-debt of 0.16 that is below the industry median of 0.41.

HOTCHKIS & WILEY is the largest shareholder among the gurus with 0.53% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.07%,

First Pacific Advisors (Trades, Portfolio) with 0.05%, Jim Simons (Trades, Portfolio) with 0.04, David Einhorn (Trades, Portfolio) with 0.03% and Sarah Ketterer (Trades, Portfolio) with 0.02%.

Romick reduced his shares in Thermo Fisher Scientific Inc. (TMO) by 7.69% with an impact of 0.18% on the portfolio. The current stake is 2.44% of the investor’s total assets.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10 with strong returns of ROE 9.63% and ROA 4.69% that are over performing 70% of the companies in the Global Diagnostics & Research industry. Financial strength has a rating of 7 out of 10, with a cash-to-debt of 0.04 that is far below the industry median of 2.87.

The largest shareholder among the gurus is

Larry Robbins (Trades, Portfolio) with 2.13% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.35%, Vanguard Health Care Fund (Trades, Portfolio) with 0.77% and Pioneer Investments (Trades, Portfolio) with 0.55%.

Romick reduced his shares by 26.17% in Joy Global Inc. (JOY) with an impact of 0.14% on the portfolio. The current stake is 0.33% of the investor’s total assets.

The company is a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with negative returns of ROE 47.39% and ROA 23.25% that are underperforming 96% of the companies in the Global Farm & Construction Equipment industry. Financial strength has a rating of 4 out of 10, with a cash-to-debt of 0.10 that is below the industry median of 0.41.

James Barrow (Trades, Portfolio) is the largest shareholder among the gurus with 5.38% of outstanding shares, followed by

First Pacific Advisors (Trades, Portfolio) with 4.02%, Steven Romick (Trades, Portfolio) with 2.57% and  Jim Simons (Trades, Portfolio) with 1.45%.

Romick reduced his shares by 9.47% in Anheuser-Busch Inbev SA (BUD) with an impact of 0.05% on the portfolio. The current stake is 1.36% of the investor’s total assets.

The company is a brewing company. It manages a portfolio of over 200 brands of beer. It also produces and distributes soft drinks, particularly in Latin America. 

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with strong returns of ROE 33.53% and ROA 11.66% that are over performing 84% of the companies in the Global Beverages - Brewers industry. Financial strength has a rating of 7 out of 10, with a cash-to-debt of 0.13 that is below the industry median of 0.46.

The company’s largest shareholder among the gurus is

Tom Russo (Trades, Portfolio) with 0.32% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.3%, Lee Ainslie (Trades, Portfolio) with 0.13%, Chase Coleman (Trades, Portfolio) with 0.12% and  Daniel Loeb (Trades, Portfolio) with 0.09%.

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