Mohnish Pabrai was interviewed by Steve Forbes very recently. He discussed the investment manager should be patient and wait for the great investment to show up. Ideally investment managers should only go to work when the rest of the world is fearful. He also discussed his brand of investment philosophy of “low rish, high uncertainty and high return”:
But the “Gentleman of Leisure” has not been at leisure at all. Here is the portfolio changes since December 31, 2009, the last time he had to file SEC with a snapshot of his entire portfolio. The entries in this table are for the stocks he held more than 5%. He has been unloading two stocks: Pinnacle Airlines Corp. (
PNCL,
Financial) and Harvest Natural Resources Inc. (
HNR,
Financial)
Portfolio change since 2009-12-31:
| Symbol | As of Date | Current Shares | Change from Last |
|---|
| HNR | 2010-03-23 | 4,792,834 | -1% |
| HNR | 2010-03-19 | 4,841,935 | -1.5% |
| HNR | 2010-03-16 | 4,915,934 | -3.2% |
| HNR | 2010-02-25 | 5,073,334 | -0.3% |
| HNR | 2010-02-24 | 5,086,534 | -1% |
| HNR | 2010-02-18 | 5,138,037 | -0.8% |
| HNR | 2010-02-04 | 5,180,658 | -1.2% |
| PNCL | 2010-02-02 | 2,127,018 | -0.2% |
| HNR | 2010-01-28 | 5,241,795 | -0.7% |
| HNR | 2010-01-25 | 5,278,393 | -2% |
| PNCL | 2010-01-21 | 2,130,518 | -0.1% |
| HNR | 2010-01-20 | 5,386,523 | -1.9% |
| HNR | 2010-01-15 | 5,491,523 | -0.2% |
| HNR | 2010-01-11 | 5,499,851 | -0.6% |
| HNR | 2010-01-07 | 5,533,570 | -0.5% |
| HNR | 2010-01-05 | 5,561,249 | -0.7% |
1. Pinnacle Airlines Corp. (PNCL)
Pinnacle Airlines Corp., a regional airline, offers scheduled passenger service throughout the United States. Pinnacle Airlines Corp. has a market cap of $141 million; its shares were traded at around $7.6 with a P/E ratio of 6.1 and P/S ratio of 0.2. Pinnacle Airlines Corp. had an annual average earning growth of 10.2% over the past 5 years.
Company insiders have been selling the stock recently as well:
CEO Recent Trades:
- Sell:: President & CEO Philip H Trenary sold 5,000 shares of PNCL stock on 12/07/2009 at the average price of 7.18, the price of the stock has increased by 5.85% since.
Directors and Officers Recent Trades:
- Sell:: Sr. VP of Operations George A Casey sold 6,161 shares of PNCL stock on 03/04/2010 at the average price of 8.11, the price of the stock has decreased by 6.29% since.
- Sell:: Sr VP Ground Operations L Russell Elander sold 11,984 shares of PNCL stock on 03/02/2010 at the average price of 8.14, the price of the stock has decreased by 6.63% since.
Mohnish Pabrai Holding History with PNCL| Symbol | Quarter ended on | Value ($1000) | Shares (Split adjusted) | Share Price (Split adjusted) |
|---|
| PNCL | 20091231 | 3 | 68,800 | $ 0.04 |
| PNCL | 20091231 | 13,814 | 2,007,902 | $ 6.88 |
| PNCL | 20090930 | 21 | 68,800 | $ 0.31 |
| PNCL | 20090930 | 14,151 | 2,112,054 | $ 6.7 |
| PNCL | 20090630 | 7,676 | 2,731,688 | $ 2.81 |
| PNCL | 20090630 | 3 | 68,800 | $ 0.04 |
| PNCL | 20090331 | 14 | 68,800 | $ 0.2 |
| PNCL | 20090331 | 3,797 | 2,731,688 | $ 1.39 |
| PNCL | 20081231 | 4,676 | 2,750,688 | $ 1.7 |
| PNCL | 20081231 | 48 | 68,800 | $ 0.7 |
| PNCL | 20080930 | 11,044 | 2,774,973 | $ 3.98 |
| PNCL | 20080930 | 78 | 70,800 | $ 1.1 |
| PNCL | 20080630 | 10,329 | 3,268,602 | $ 3.16 |
| PNCL | 20080331 | 28,620 | 3,339,402 | $ 8.57 |
| PNCL | 20071231 | 49,485 | 3,244,902 | $ 15.25 |
| PNCL | 20070930 | 22,849 | 1,426,276 | $ 16.02 |
| PNCL | 20070630 | 25,848 | 1,378,538 | $ 18.75 |
| PNCL | 20070331 | 36,205 | 2,094,002 | $ 17.29 |
| PNCL | 20061231 | 35,284 | 2,094,002 | $ 16.85 |
| PNCL | 20060930 | 15,517 | 2,094,002 | $ 7.41 |
| PNCL | 20060630 | 14,742 | 2,094,002 | $ 7.04 |
| PNCL | 20060331 | 11,521 | 1,730,002 | $ 6.66 |
| PNCL | 20051231 | 5,339 | 800,500 | $ 6.67 |
2. Harvest Natural Resources Inc. (HNR)
Harvest Natural Resources, Inc. is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. Harvest Natural Resources Inc. has a market cap of $259.8 million; its shares were traded at around $7.81 with and P/S ratio of 1435.1.
Mohnish Pabrai Holding History with HNR| Symbol | Quarter ended on | Value ($1000) | Shares (Split adjusted) | Share Price (Split adjusted) |
|---|
| HNR | 20091231 | 29,606 | 5,596,529 | $ 5.29 |
| HNR | 20090930 | 29,011 | 5,655,201 | $ 5.13 |
| HNR | 20090630 | 25,067 | 5,684,201 | $ 4.41 |
| HNR | 20090331 | 19,305 | 5,694,701 | $ 3.39 |
| HNR | 20081231 | 24,565 | 5,712,701 | $ 4.3 |
| HNR | 20080930 | 57,813 | 5,712,701 | $ 10.12 |
| HNR | 20080630 | 63,182 | 5,712,701 | $ 11.06 |
| HNR | 20080331 | 68,895 | 5,712,701 | $ 12.06 |
| HNR | 20071231 | 71,409 | 5,712,701 | $ 12.5 |
| HNR | 20070930 | 68,210 | 5,712,701 | $ 11.94 |
| HNR | 20070630 | 67,804 | 5,693,001 | $ 11.91 |
| HNR | 20070331 | 48,445 | 4,973,787 | $ 9.74 |
| HNR | 20061231 | 36,988 | 3,479,603 | $ 10.63 |
| HNR | 20060930 | 34,982 | 3,379,860 | $ 10.35 |
| HNR | 20060630 | 45,108 | 3,331,460 | $ 13.54 |
| HNR | 20060331 | 32,677 | 3,361,851 | $ 9.72 |
| HNR | 20051231 | 27,894 | 3,141,232 | $ 8.88 |
| HNR | 20050930 | 29,617 | 2,760,190 | $ 10.73 |
| HNR | 20050630 | 27,991 | 2,560,955 | $ 10.93 |
| HNR | 20050331 | 12,151 | 1,021,968 | $ 11.89 |
| HNR | 20041231 | 17,664 | 1,022,830 | $ 17.27 |
Conclusion
Monhish acquired the shares of the two stocks at much higher prices. Rather than doubling down and buying more shares, it looks like he is retreating from them.
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