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Tiziano Frateschi
Tiziano Frateschi
Articles (2471)  | Author's Website |

Jim Chanos Exits Verizon, Tractor Supply in 3rd quarter

The guru sold out several stakes in 3rd quarter

November 29, 2016 | About:

Jim Chanos (Trades, Portfolio) manages a portfolio that, after the third-quarter trades, was composed of 45 stocks with a value of $310 million. These are the largest divestitures of that quarter.

The guru closed his stake in Tractor Supply Co. (TSCO) with an impact of -2.06% on the portfolio.

The company is an operator of retail farm and ranch stores in the U.S. and supplies to recreational farmers and ranchers as well as tradesmen and small businesses. During the third quarter net sales grew 4.5% from the same quarter of 2015, and earnings per share increased 4.7%.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 30.16% and ROA of 16.89% that are outperforming 92% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 7 out of 10 with cash to debt of 0.17 that is below the industry median of 0.84.

The largest shareholder among the gurus is Steven Cohen (Trades, Portfolio) with 0.58% of outstanding shares followed by Ron Baron (Trades, Portfolio) with 0.23%, Jim Simons (Trades, Portfolio) with 0.17%, Joel Greenblatt (Trades, Portfolio) with 0.16%, Pioneer Investments (Trades, Portfolio) with 0.13%, Mario Gabelli (Trades, Portfolio) with 0.08% and RS Investment Management (Trades, Portfolio) with 0.08%.

The investor exited his stake in Verizon Communications Inc. (VZ) with an impact of -1.42% on the portfolio.

The company is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its two segments are Wireless and Wireline. Third-quarter earnings per share were 89 cents compared to 99 cents in the same quarter of a year before, and total operating revenues decreased 6.7% year over year.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 79.76% and ROA of 5.83% that are outperforming 71% of the companies in the Global Telecom Services industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.06 that is below the industry median of 0.43.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 0.75% of outstanding shares followed by Warren Buffett (Trades, Portfolio) with 0.37%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.16%, Pioneer Investments with 0.09%, Jeremy Grantham (Trades, Portfolio) with 0.06%, Tweedy Browne (Trades, Portfolio) with 0.04%, Greenblatt with 0.04% and John Rogers (Trades, Portfolio) with 0.02%.

The guru exited his position in FireEye Inc. (FEYE) with an impact of -1.27% on the portfolio.

The company provides cybersecurity solutions for detecting, preventing and resolving cyber attacks that evade legacy signature-based security products. Its solutions include traditional and next-generation firewalls, IPS, anti-virus and gateways. Third-quarter revenue grew 13% from the third quarter of a year before, and GAAP gross margin was 63%. The company reported non-GAAP gross margin was 74% compared to 73% in the same quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10 with ROE of -56.11% and ROA -22.80% that are underperforming 89% of the companies in the Global Software - Application industry. Financial strength has a rating of 4 out of 10 with cash to debt of 1.26 that is below the industry median of 11.11.

The largest shareholder among the gurus is Baron with 0.22% of outstanding shares followed by Simons with 0.2% and Chase Coleman (Trades, Portfolio) with 0.12%.

The guru closed his stake in Northrop Grumman Corp. (NOC) with an impact of -1.22% on the portfolio.

It is a security company providing systems, products and solutions in unmanned systems; cyber security; command, control, communications and computers (C4) intelligence; surveillance; and reconnaissance. First-quarter earnings per share grew 26%, and net earnings increased 15%. The company repurchased 1.5 million shares of its common stock in the first quarter.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 37.72% and ROA of 8.85% that are outperforming 86% of the companies in the Global Aerospace & Defense industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.17 that is below the industry median of 0.37.

Lee Ainslie (Trades, Portfolio) is the largest shareholder among the gurus with 0.63% of outstanding shares followed by First Eagle Investment (Trades, Portfolio) with 0.61%, Simons with 0.22%, Cohen with 0.08%, Greenblatt with 0.02%, Pioneer Investments with 0.02% and John Burbank (Trades, Portfolio) with 0.02%.

The investor exited his stake in Lockheed Martin Corp. (LMT) with an impact of -1.21% on the portfolio.

The company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROA of 178.49% and ROC of 10.80% that are outperforming 91% of the companies in the Global Aerospace & Defense industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.20 that is below the industry median of 0.37.

The largest shareholder among the gurus is First Eagle Investment with 0.2% of outstanding shares followed by Tweedy Browne with 0.03%, Greenblatt with 0.02%, Burbank with 0.02%, Manning & Napier Advisors Inc. with 0.01% and Rogers with 0.01%.

The guru closed his stake in Altria Group Inc. (MO) with an impact of -1.16% on the portfolio.

The company through its subsidiaries manufactures and sells cigarettes, other tobacco products, machine-made large cigars and pipe tobacco. It also maintains a portfolio of leveraged and direct finance leases. Third-quarter diluted earnings per share decreased 28.2%, and the company repurchased 2.6 million shares at an average price of $66.23 for a total of $171 million.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 178.20% and ROA of 16% that are outperforming 70% of the companies in the Global Tobacco industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.17 that is below the industry median of 0.57.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 0.99% of outstanding shares followed by Tom Russo (Trades, Portfolio) with 0.3%, Simons with 0.15%, David Winters (Trades, Portfolio) with 0.04%, MS Global Franchise Fund (Trades, Portfolio) with 0.03%, Wintergreen Fund (Trades, Portfolio) with 0.03% and Greenblatt with 0.02%.

The guru exited his shares in Reynolds American Inc. (RAI) with an impact of -1.12% on the portfolio.

The company through its subsidiaries, manufactures cigarettes and other tobacco products in the U.S. The products brand include Camel, Pall Mall and Winston among others.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 27.28% and ROA of 10.38% that are outperforming 60% of the companies in the Global Tobacco industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.15 that is below the industry median of 0.54%.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.36% of outstanding shares followed by Pioneer Investments with 0.34%, Winters with 0.13%, Wintergreen Fund with 0.12%, MS Global Franchise Fund with 0.05% and Greenblatt with 0.03%.

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

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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