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Chris Davis Buys Activision Blizzard, Sells Amazon.com

The guru's top trades in the 2nd quarter

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Aug 22, 2016
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Davis Advisors manages more than $60 billion across several different asset classes.

Chris Davis (Trades, Portfolio) is the portfolio manager of Davis Financial Fund. The following are its largest trades of the second quarter.

The guru closed his stake in Las Vegas Sands Corp. (LVS) with an impact of -1.5% on the portfolio.

The company is a developer of destination properties that feature premium accommodations, world-class gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants and other amenities.

Net revenue for the second quarter decreased 9.3%, and net income decreased 32.2%. Adjusted net income (a non-GAAP measure) decreased to $411.3 million, or 52 cents per diluted share, compared to $481.5 million, or 60 cents per diluted share, in the second quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with return on equity (ROE) of 24.13% and return on assets (ROA) of 7.82% that are outperforming 81% of the companies in the Global Resorts & Casinos industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.22 that is below the industry median of 0.75.

The largest shareholder among the gurus is

Frank Sands (Trades, Portfolio) with 0.72% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.57%, PRIMECAP Management (Trades, Portfolio) with 0.31%, Mario Gabelli (Trades, Portfolio) with 0.07% and Murray Stahl (Trades, Portfolio) with 0.07%.

The guru bought 7,027,568 shares in Activision Blizzard Inc. (ATVI) with an impact of 1.23% on the portfolio.

The company is an online, personal computer, video game console, tablet, hand-held and mobile game publisher. It has three operating segments: Activision Publishing Inc., Blizzard Entertainment Inc. and Activision Blizzard Distribution.

Second quarter net revenue was $1.57 billion compared with $1.04 billion for the second quarter of a year before, an increase of 50%. GAAP net revenues from digital channels were an all-time quarterly record of $1.14 billion, up 23% quarter over quarter and 101% year over year.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 9.11% and ROA of 4.83% that are outperforming 60% of the companies in the Global Electronic Gaming & Multimedia industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.45 that is below the industry median of 10.15.

Steve Mandel (Trades, Portfolio) is the largest shareholder among the gurus with 1.39% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 1.37%, Davis with 0.95%, Daniel Loeb (Trades, Portfolio) with 0.4% and Jeremy Grantham (Trades, Portfolio) with 0.14%.

The guru reduced his stake in Amazon.com Inc. (AMZN) by 16.03% with an impact of -1.12% on the portfolio.

The company sells its products through the website which provides services, such as advertising services and co-branded credit card agreements. It also offers electronic devices like Kindle e-readers and Fire tablets.

Operating cash flow increased 42% in the second quarter and net sales grew 31%. Operating income was $1.3 billion in the second quarter compared with $464 million in the second quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 14.02% and ROA of 3.21% that are outperforming 55% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 7 out of 10 with cash to debt of 2.01 that is above the industry median of 0.99.

The largest shareholder among the gurus is

Andreas Halvorsen (Trades, Portfolio) with 0.73% of outstanding shares followed by Sands with 0.5%, Spiros Segalas (Trades, Portfolio) with 0.46%, Ken Fisher (Trades, Portfolio) with 0.42% and Mandel with 0.42%.

The investor closed his stake in Laboratory Corp. of America Holdings (LH) with an impact of -0.88% on the portfolio.

The company offers testing services used by the medical profession in core testing, patient diagnosis and in the monitoring and treatment of disease.

During the second quarter net revenue grew 7% year over year, and adjusted EPS of $2.31 increased 11% over last year.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROA of 12.46% and ROC of 4.36% that is outperforming 67% of the companies in the Global Diagnostics & Research industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.11 that is below the industry median of 2.12.

Larry Robbins (Trades, Portfolio) is the largest shareholder among the gurus with 5.33% followed by John Rogers (Trades, Portfolio) with 1.48%, Wallace Weitz (Trades, Portfolio) with 0.79%, Paul Tudor Jones (Trades, Portfolio) with 0.23% and Joel Greenblatt (Trades, Portfolio) with 0.17%.

The guru increased his stake in Occidental Petroleum Corp. (OXY) by 45.22% with an impact of 0.87% on the portfolio.

The company is a multinational organization whose subsidiaries and affiliates operate in the oil and gas, chemical and midstream, marketing and other segments.

During the second quarter end cash balance of $3.8 billion, an increase of nearly $600 million from the first quarter. It reported a loss of $139 million or 18 cents per diluted share for the second quarter.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of -29.19% and ROA -16.89% that are underperforming 52% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.45.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 2.49% of outstanding shares followed by

T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%, NWQ Managers (Trades, Portfolio) with 0.18%, Pioneer Investments (Trades, Portfolio) with 0.12% and First Pacific Advisors (Trades, Portfolio) with 0.1%.

The investor bought 2,442,286 shares in EQT Corp. (EQT) with an impact of 0.83% on the portfolio.

The company conducts its business through two business segments, namely EQT Production and EQT Midstream.

Second quarter net loss was $258.6 million, or $1.55 loss per diluted share (EPS), compared to second-quarter 2015 net income attributable to EQT of $5.5 million, or 4 cents per diluted share. The company reported a 26% increase for sales volume.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of -6.44% and ROA of -2.47% that are outperforming 68% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.81 that is above the industry median of 0.45.

NWQ Managers (Trades, Portfolio) is the second-largest shareholder among the gurus, with 0.92% of outstanding shares followed by John Burbank (Trades, Portfolio) with 0.47%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.47% and Jim Simons (Trades, Portfolio) with 0.25%.

The investor reduced his stake Monsanto Co. (MON) by 20.41% with an impact of -0.64% on the portfolio.

The company along with its subsidiaries provides agricultural products for farmers. Its seeds, biotechnology traits, herbicides and precision agriculture products provide farmers with solutions that improve productivity.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 18.33% and ROA of 4.90% that are outperforming 61% of the companies in the Global Agricultural Inputs industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.12 that is below industry median of 0.55.

The largest shareholder among the gurus is

PRIMECAP Management (Trades, Portfolio) with 0.26% of outstanding shares followed by Robbins with 2.47%, Sands with 2.23%, Manning & Napier Advisors, Inc with 1.01% and Grantham with 0.67%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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