Seven of the top 10 second-quarter transactions by Murray Stahl (Trades, Portfolio) of Horizon Kinetics were reductions of existing stakes in the portfolio.
The largest reduction of the quarter was the sale of more than 83% of the guru’s stake in Liberty Media Corp. (LMCK, Financial), a Colorado-based mass media company. The guru sold 6,097,053 shares for an average price of $20.4 per share in a deal that had a -4.24% impact on the portfolio.
The remaining stake of 1,212,571 shares is 0.26% of LMCK’s outstanding shares and 0.58% of the guru’s total assets. Mason Hawkins (Trades, Portfolio) is LMCK’s leading shareholder among the gurus with a stake of 8,304,492 shares. The stake is 1.77% of LMCK’s outstanding shares and 1.63% of Hawkins’ total assets.
The guru also sold more than 83% of the stake in Liberty Media’s LMCA shares. The guru sold 3,063,726 shares for an average price of $20.58 per share. The transaction had a -2.08% impact on the portfolio.
The remaining 610,182 shares are 0.13% of LMCA’s outstanding shares and 0.3% of the guru’s total assets. LMCA’s leading shareholder among the gurus is Warren Buffett with a stake of 2,499,998 shares. The stake is 0.53% of LMCA’s outstanding shares and 0.04% of Buffett’s total assets.
Liberty Media has a price-earnings (P/E) ratio of 25.3, a price-book (P/B) ratio of 0.2 and a price-sales (P/S) ratio of 1.9.
GuruFocus gives LMCK a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with return on equity (ROE) of 4.17% that is lower than 53% of the companies in the Global Broadcasting – TV industry and return on assets (ROA) of 1.53% that is lower than 54% of the companies in that industry.
GuruFocus gives LMCA a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10.
LMCK sold for $21.04 per share at market close Thursday. The DCF Calculator gives LMCK a fair value of $8.99.
LMCA sold for $21.26 per share Thursday. The DCF Calculator gives LMCA a fair value of $8.99.
The guru sold 2,362,772 shares, nearly one-third of the stake, in Dreamworks Animation SKG (DWA, Financial), a California-based animation studio, for an average price of $35.91 per share. The deal had a -1.47% impact on the portfolio.
The remaining stake of 4,848,112 shares is 5.59% of Dreamworks’ outstanding shares and 5.02% of the guru’s total assets. PRIMECAP Management (Trades, Portfolio) is Dreamworks’ leading shareholder among the gurus with a stake of 11,374,000 shares. The stake is 13.12% of Dreamworks’ outstanding shares and 0.49% of PRIMECAP’s total assets.
Dreamworks has a P/E of 64, a forward P/E of 74.6, a P/B of 3 and a P/S of 3.6. GuruFocus gives Dreamworks a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10 with ROE of 4.86% that is higher than 51% of the companies in the Global Media – Diversified industry and ROA of 2.79% that is higher than 54% of the companies in that industry.
Dreamworks sold for $40.97 per share Thursday. The DCF Calculator gives Dreamworks a fair value of $6.85.
The guru sold nearly 28% of the stake in DISH Network Corp. (DISH, Financial), a Colorado-based satellite television company. The guru sold 580,979 shares for an average price of $48.82 per share in a transaction that had a -0.67% impact on the portfolio.
The remaining stake of 1,501,185 shares is 0.32% of DISH’s outstanding shares and 1.99% of the guru’s total assets. Dodge & Cox is DISH’s leading shareholder among the gurus with a stake of 14,122,580 shares. The stake is 3.04% of DISH’s outstanding shares and 0.73% of Dodge & Cox’s total assets.
DISH has a P/E of 26.5, a forward P/E of 17.2, a P/B of 6.5 and a P/S of 1.5. GuruFocus gives DISH a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 29.19% that is higher than 90% of the companies in the Global Pay TV industry and ROA of 3.78% that is higher than 59% of the companies in that industry.
DISH sold for $49.3 per share Thursday. The DCF Calculator gives DISH a fair value of $19.91.
The guru sold nearly 62% of the stake in Liberty Interactive Corp. (LVNTA, Financial), a Colorado-based mass media holding company that spun off from Liberty Media. The guru sold 686,966 shares for an average price of $34.44 per share. The deal had a -0.67% impact on the portfolio.
The remaining 428,778 shares are 0.07% of Liberty Interactive’s outstanding shares and 0.34% of the guru’s total assets. Alan Fournier (Trades, Portfolio) is Liberty Interactive’s leading shareholder among the gurus with a stake of 3,628,716 shares. The stake is 0.59% of Liberty Interactive’s outstanding shares and 3.09% of Fournier’s total assets.
Liberty Interactive has a P/E of 14.5, a forward P/E of 34.1, a P/B of 1.9 and a P/S of 1.3. GuruFocus gives Liberty Interactive a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 14.56% that is higher than 75% of the companies in the Global Media – Diversified industry and ROA of 4.65% that is higher than 66% of the companies in that industry.
Liberty Interactive sold for $38.69 per share Thursday. The DCF Calculator gives Liberty Interactive a fair value of $15.84.
The guru trimmed the stake in The Howard Hughes Corp. (HHC, Financial), a Dallas-based real estate development company, by more than 4%, selling 159,226 shares for an average price of $107.74 per share. The deal had a -0.42% impact on the portfolio.
The remaining stake of 3,545,634 shares is 8.9% of the company’s outstanding shares and 10.27% of the guru’s total assets. Bill Ackman (Trades, Portfolio) is Howard Hughes’ leading shareholder among the gurus with a stake of 3,568,017 shares. The stake is 8.96% of the company’s outstanding shares and 5.43% of Ackman’s total assets.
Howard Hughes has a P/E of 20.4, a forward P/E of 36.5, a P/B of 1.9 and a P/S of 5.1. GuruFocus gives Howard Hughes a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 14.03% and ROA of 5.75% that are higher than 75% of the companies in the Global Real Estate – General industry.
Howard Hughes sold for $117 per share Thursday. The DCF Calculator gives Howard Hughes a fair value of $61.43.
The guru reduced the stake in AutoNation Inc. (AN, Financial), a Florida-based automotive retailer, by more than 12%, selling 321,657 shares for an average price of $47.96 per share. The transaction had a -0.37% impact on the portfolio.
The remaining stake of 2,323,350 shares is 2.28% of AutoNation’s outstanding shares and 2.77% of the guru’s total assets. Edward Lampert (Trades, Portfolio) is AutoNation’s leading shareholder among the gurus with 6,093,287 shares. The stake is 5.97% of AutoNation’s outstanding shares and 28.12% of Lampert’s total assets.
AutoNation has a P/ E of 12.2, a forward P/E of 11.3, a P/B of 2.2 and a P/S of 0.3. GuruFocus gives AutoNation a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 19.01% that is higher than 79% of the companies in the Global Auto & Truck Dealerships industry and ROA of 4.51% that is higher than 55% of the companies in that industry.
AutoNation sold for $47.56 per share Thursday. The DCF Calculator gives AutoNation a fair value of $41.84.
Disclosure: I own no shares in any of the stocks mentioned in this article.
Start a free seven-day trial of Premium Membership to GuruFocus.
