1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Tiziano Frateschi
Tiziano Frateschi
Articles (2578)  | Author's Website |

David Dreman Sells St. Jude Medical, Ford

Contrarian investor nearly closes stake in medical company

David Dreman (Trades, Portfolio) is the founder and chairman of Dreman Value Management and also serves as the firm's CIO. The guru made the following sales during the third quarter.

His stake in St. Jude Medical Inc. (STJ) was almost closed, after a reduction of 99.70% and with an impact of -0.82% on the portfolio.

The company develops, manufactures and distributes cardiovascular medical devices for global cardiac rhythm management, cardiovascular, atrial fibrillation therapy areas and neurostimulation medical devices for the management of chronic pain. Third quarter net sales increased 12% and international sales grew 13%. The company reported a decrease of 3% for diluted EPS.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The return on equity of 15.74% and return on assets of 5.33% are outperforming 69% of the companies in the Global Medical Devices industry. Financial strength has a rating of 5 out of 10 from GuruFocus. 

Vanguard Health Care Fund (Trades, Portfolio) is another notable shareholder of the company among the gurus with 2.14% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 1.01%, Daniel Loeb (Trades, Portfolio) with 0.91%, Eric Mindich (Trades, Portfolio) with 0.51%, Jeremy Grantham (Trades, Portfolio) with 0.44% and First Eagle Investment (Trades, Portfolio) with 0.19%.

The guru reduced his stake in Express Scripts Holding Co. (ESRX) by 54.60% and with an impact of -0.69% on the portfolio.

The company offers health care management and administration services such as managed care organizations, health insurers, workers' compensation plans and government health programs. During the third quarter, net income grew 9% and diluted EPS increased 19%. The company reported a growth of 8% for EBITDA and 13% for EBITDA per adjusted claim.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. ROE of 17.20% and ROA of 5.31% are outperforming 50% of the companies in the Global Health Care Plans industry. Financial strength has a rating of 5 out of 10 from GuruFocus. The cash to debt of 0.14 is below the industry median of 1.36.

The largest shareholder of the company among the gurus is Dodge & Cox with 3.47% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.82%, Chris Davis (Trades, Portfolio) with 0.75%, Manning & Napier Advisors with 0.55%, David Rolfe (Trades, Portfolio) with 0.5%, Charles Brandes (Trades, Portfolio) with 0.35%, Wallace Weitz (Trades, Portfolio) with 0.16% and Joel Greenblatt (Trades, Portfolio) with 0.14%.

The guru reduced his stake in Ford Motor Co. (F) by 46.59% and with an impact of -0.57% on the portfolio.

The company is engaged in the automobile manufacturing business. It produces cars and trucks.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. ROE of 24.43% and ROA of 3.13% are underperforming 55% of the companies in the Global Auto Manufacturers industry. Financial strength has a rating of 5 out of 10 from GuruFocus. The cash to debt of 0.25 is below the industry median of 0.51.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus with 1.17% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.44%, Diamond Hill Capital (Trades, Portfolio) with 0.31%, Pioneer Investments (Trades, Portfolio) with 0.04%, Jim Simons (Trades, Portfolio) with 0.02, Ken Fisher (Trades, Portfolio) with 0.02% and Mario Gabelli (Trades, Portfolio) with 0.01%.

The investor closed his stake in EMC Corp. (EMC) with an impact of -0.56% on the portfolio.

The company supports businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). It operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. Third quarter revenue grew 1% year over year and the company generated $1.4 billion in operating cash flow and $1.03 billion in free cash flow.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 9.96% and ROA of 4.58% are outperforming 69% of the companies in the Global Data Storage industry. Financial strength has a rating of 6 out of 10 from GuruFocus. The cash to debt of 1.87 is above the industry median of 1.35.

Dreman almost closed his stake in HollyFrontier Corp. (HFC), selling 99.61% of his holding.

The company is an independent petroleum refiner. It produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. 

GuruFocus gives the stock a profitability and growth rating of 4 out of 10. Financial strength has a rating of 6 out of 10 from GuruFocus, with cash to debt of 0.29 that is below the industry median of 0.44.

The largest shareholder of the company among the gurus is Steven Cohen (Trades, Portfolio) with 0.72% of outstanding shares, followed by John Buckingham (Trades, Portfolio) with 0.08%, Caxton Associates (Trades, Portfolio) with 0.04%, Keeley Asset Management Corp (Trades, Portfolio) with 0.04% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The guru reduced his stake in Johnson Controls International PLC. (JCI) by 18.84% and with an impact of -0.24% on the portfolio.

The company creates products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and batteries for hybrid and electric vehicles; and interior systems for automobiles. Fourth quarter adjusted net sales were $9.4 billion compared to $8.7 billion in the prior year quarter.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. Financial strength has a rating of 5 out of 10 from GuruFocus. The cash to debt of 0.04 is below the industry median of 0.51.

The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 4.01% of outstanding shares, followed by Dodge & Cox with 3.52%, Chris Davis (Trades, Portfolio) with 1.56%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.98% and HOTCHKIS & WILEY with 0.95%.

The guru reduced his stake in Agrium Inc. (AGU) by 82.07% and with an impact of -0.21% on the portfolio.

It is a retail supplier of agricultural products and services in North and South America and a producer and marketer of agricultural nutrients and industrial products. Third quarter sales were $2,245 million compared to $2,534 million in the same quarter of a year before. Net earnings were $39 million versus $99 million in the prior year quarter.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. ROE of 11.65% and ROA of 4.28% are outperforming 57% of the companies in the Global Agricultural Inputs industry. Financial strength has a rating of 5 out of 10 from GuruFocus. The cash to debt of 0.05 is below the industry median of 0.41.

The largest shareholder of the company among the gurus is Dodge & Cox with 1.93% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.34%, NWQ Managers (Trades, Portfolio) with 0.17%, Jeremy Grantham (Trades, Portfolio) with 0.07%, Westport Asset Management (Trades, Portfolio) with 0.05% and Stanley Druckenmiller (Trades, Portfolio) with 0.03%.

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

Start a free seven-day trial of Premium Membership to GuruFocus. 

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


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Tiziano Frateschi


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)