T Boone Pickens (Trades, Portfolio) made seven transactions in the first quarter that had impacts of at least 2% on his portfolio, and all but the top two were in the oil and gas industry.
Pickens’ largest deal of the quarter was the purchase of 118,973 shares of Emerson Electric Co. (EMR, Financial), an electrical equipment company based in Ferguson, Missouri, for an average price of $48.11 per share. The transaction had a 3.34% impact on Pickens’ portfolio.
The holding is 0.02% of Emerson’s outstanding shares and 3.34% of Pickens’ total assets. T Rowe Price Equity Income Fund (Trades, Portfolio) is Emerson’s leading shareholder among the gurus with a stake of 4,329,500 shares. The stake is 0.67% of Emerson’s outstanding shares and 1.11% of the guru’s total assets.
Emerson has a P/E of 17, a forward P/E of 15.1, a P/B of 4.2 and a P/S of 1.5. GuruFocus gives Emerson a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 23.60% that is higher than 92% of the companies in the Global Diversified Industrials industry and ROA of 8.63% that is higher than 84% of the companies in that industry.
Emerson sold for $49.81 per share Wednesday morning. The DCF Calculator gives Emerson a fair value of $31.85.
Pickens sold his 107,399 shares in Tupperware Brands Corp. (TUP, Financial), an Orlando, Florida-based home products company, for an average price of $51.55 per share. The divestiture had a -3.3% impact on Pickens’ portfolio.
Tupperware’s leading shareholder among the gurus is Joel Greenblatt (Trades, Portfolio) with a stake of 243,898 shares. The stake is 0.48% of Tupperware’s outstanding shares and 0.16% of Greenblatt’s total assets.
Tupperware has a P/E of 13.8, a forward P/E of 12.2, a P/B of 16.2 and a P/S of 1.2. GuruFocus gives Tupperware a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 125.13% that is higher than 99% of the companies in the Global Packaging & Containers industry and ROA of 11.96% that is higher than 90% of the companies in that industry.
Tupperware sold for $54.33 per share Wednesday morning. The DCF Calculator gives Tupperware a fair value of $67.42 with a 19% margin of safety.
Pickens boosted his holding in Kinder Morgan Inc. (KMI, Financial), a Houston-based oil and gas company, by nearly 593% with the purchase of 288,884 shares for an average price of $16.26 per share. The deal had a 2.67% impact on Pickens’ portfolio.
Pickens’ stake, now 337,634 shares, is 0.02% of Kinder Morgan’s outstanding shares and 3.12% of Pickens’ total assets. Warren Buffett (Trades, Portfolio) is Kinder Morgan’s leading shareholder among the gurus with a stake of 26,533,525 shares. The stake is 1.19% of Kinder Morgan’s outstanding shares and 0.37% of Buffett’s total assets.
Kinder Morgan has a P/E of 911.5, a forward P/E of 26.7, a P/B of 1.1 and a P/S of 2.8. GuruFocus gives Kinder Morgan a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10 with ROE of 0.21% that is lower than 68% of the companies in the Global Oil & Gas Midstream industry and ROA of 0.16% that is lower than 73% of the companies in that industry.
Kinder Morgan sold for $18.7 per share Wednesday morning. The DCF Calculator gives Kinder Morgan a fair value of 21 cents.
Pickens raised his stake in Western Gas Partners LP (WES, Financial), a natural gas and oil company based in The Woodlands, Texas, by nearly 360% with the purchase of 104,319 shares for an average price of $36.93 per share. The transaction had a 2.34% impact on Pickens’ portfolio.
The stake, now 133,319 shares, is 0.09% of Western Gas’ outstanding shares and 2.99% of Pickens’ total assets. Western Gas’ leading shareholder among the gurus is Jim Simons (Trades, Portfolio) with 269,100 shares in his portfolio.
Western Gas has a forward P/E of 25.3, a P/B of 1.9 and a P/S of 4.3. GuruFocus gives Western Gas a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of -0.11% that is lower than 71% of the companies in the Global Oil & Gas Midstream industry and ROA of 3.16% that is higher than 54% of the companies in that industry.
Western Gas sold for $48.79 per share Wednesday morning. The DCF Calculator gives Western Gas a fair value of $-3.71.
When this article was posted Wedneday, it was reported that Targa Resources Partners LP (NGLS, Financial) was divested from T Boone Pickens (Trades, Portfolio)’ portfolio in the first quarter.
Although it is listed on Pickens’ latest trades page, the stock is no longer being traded as of Feb. 16.
We regret the error.
Pickens trimmed his stake in EQT Midstream Partners LP (EQM, Financial), a Pittsburgh-based natural gas provider, by almost 78%. The guru sold 52,928 shares, leaving him with 15,000 shares in his possession. The deal had a -2.21% impact on Pickens’ portfolio.
EQT’s leading shareholder among the gurus is Simons, who owns 37,500 shares, representing 0.05% of EQT’s outstanding shares and 0.01% of Simons’ total assets.
EQT has a P/E of 15.7, a P/B of 3.8 and a P/S of 8.7. GuruFocus gives EQT a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10 with ROE of 29.04% that is higher than 90% of the companies in the Global Oil & Gas Midstream industry and ROA of 25.30% that is higher than 96% of the companies in that industry.
EQT sold for $77.34 per share Wednesday morning. The DCF Calculator gives EQT a fair value of $52.33.
Pickens acquired a 392,654-share stake in Memorial Resource Development Corp. (MRD, Financial), a Houston-based developer of natural gas, NGL and oil properties, for an average price of $11.91 per share. The transaction had a 2.06% impact on Pickens’ portfolio.
The stake is 0.19% of Memorial Resource Development’s outstanding shares and 2.06% of Pickens’ total assets. Memorial Resource Development’s leading shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with a stake of 4,687,918 shares. The stake is 2.27% of Memorial Resource Development’s outstanding shares and 0.07% of the guru’s total assets.
Memorial Resource Development has a P/E of 62.4, a forward P/E of 93.5, a P/B of 4.1 and a P/S of 4.5. GuruFocus gives Memorial Resource Development a Financial Strength rating of 3/10 and a Profitability and Growth rating of 4/10 with ROE of 7.71% that is higher than 56% of the companies in the Global Oil & Gas Midstream industry and ROA of 1.10% that is lower than 63% of the companies in that industry.
Memorial Resource Development sold for $16.27 per share Wednesday morning. The DCF Calculator gives Memorial Resource Development a fair value of $2.78.
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