The following information is a highlight of the real-time guru
activity we saw this week. To view more information on these gurus,
check out their
. "Real Time Picks" reports the stock purchases and sells that
Gurus have made within the prior two weeks. If a Guru makes a
purchase or sell of a company in which they own a greater-than 5%
stake, SEC regulations require them to report their transaction
within two days. We saw notable real time activity from
This week Buffet's company, Berkshire Hathaway (BRK.A)(BRK.B),
became 2.8% owner of
Goldman Sachs (
by converting warrants he purchased when the investment bank was on
the brink of failing in 2008.
In the original Goldman Sachs deal, Buffett invested $5 billion for
the bank's preferred stock and received $5 billion in common stock,
strike price $115 per share. He had five years to exercise the
warrants, which carried a 10% dividend.
Then, in March 2013, the two parties amended the deal from a cash
settlement to a net share settlement. In other words, instead of
giving Berkshire Hathaway the right to purchase 43,478,260 shares
at an exercise price of $115 before Oct. 1, 2013, Goldman would
instead give him the number of shares equal to the value to the
difference between the average closing price of the 10 trading days
leading up to Oct. 1, 2013 and the exercise price multiplied by the
43,478,260 shares the warrants granted.
This stake was smaller than it would have been in the initial deal,
but did not require Buffett to spend any money to exercise the
warrants. As disclosed on Oct. 8, the stake given in the amended
deal totaled about 13.06 million shares, making Berkshire the
six-largest external shareholder in the company.
In 2011, Goldman redeemed another 50,000 shares of preferred stock
with a 10% cumulative dividend at a price of $110,000 per share
that Berkshire purchased concurrently with the warrants. Goldman
paid Buffett $1.64 billion in one-time preferred dividends at the
time of redemption.
Goldman Sachs shares trade around $159.45 on Friday, up
approximately 23% since Buffett made the deal with the company on
Oct. 1, 2008.
To read more on Buffett's transaction, read Holly LaFon's article
Hawkins cut his stake in
Wendy's Co (
. over the past week. The guru decreased his position in Wendy's
-46.09% by selling a total of 16,136,800 shares. He sold these
shares at an average price of $8.14 per share, and since his sell
the price per share is trading up about 5%.
Hawkins still holds on to 18,878,200 shares, representing 4.8% of
the company's shares outstanding. The sell dropped him down from an
8.9% stake in the company. Historically the guru has seen an
average gain of 61% on shares bought, as shown in the graph below.
Hawkins's historical holding history:
Wendy's Co. owns, franchises and operates company-owned Wendy's
fast food restaurants. The company maintains over 6,500 restaurants
in operation in the U.S as well as in 27 other countries and
Wendy's historical revenue and net income:
The analysis on Wendy's Co. reports that the company's revenue has
been in decline over the past five years, its dividend payout is
too high, their Piotroski F-Score is high and its P/S ratio is
nearing a 10-year high.
Wendy's has a market cap of $3.36 billion. Its shares are currently
trading at around $8.54 with a P/E ratio of 232.40, a P/S ratio of
1.30 and a P/B ratio of 1.60. The company's dividend yield is
currently at 2.00%.
Rogers made a rather large increase in his position in
Rosetta Stone (
last week. The guru upped his stake 138.19% by purchasing a total
of 1,315,089 shares. He purchased these shares at an average price
of $16.23 per share. The price is trading slightly down today at
$16.18 per share.
John Rogers now holds on to a total of 2,266,743 shares of Rosetta
Stone, representing 10.4% of the company's shares outstanding. His
update in the company makes him the largest guru shareholder of
Rosetta Stone stock.
Rogers' historical holding history of RST:
Rosetta Stone is a provider of technology-based language learning
solutions. The company develops, markets and sells language
learning solutions consisting of software, online services and
audio practice tools under the Rosetta Stone brand. The company
currently offers courses in 30 languages.
Rosetta Stone's historical revenue and net income:
Recently Rosetta Stone announced $25 million share repurchase plan.
The plan will purchase these shares of outstanding common stock
over the duration of a two-year period.
The past quarter showed immense growth as its EBITDA jumped nearly
150% to $2.8 million.
Rosetta Stone has a market cap of $350.1 million. Its shares are
currently trading at around $16.14 with a P/S ratio of 1.30 and a
P/B ratio of 2.50.
John Rogers also made a smaller but still notable increase in the
. The guru upped his stake 13.01% by purchasing a total of 86,937
shares of the company's stock. He bought these shares at an average
price of $10.96 per share, and since then the price per share has
increased about 6%.
Rogers now holds on to a total of 755,379 shares of Astro-Med,
making him the largest guru shareholder and representing 10.14% of
the company's shares outstanding.
Rogers holding history of Astro-Med:
Astro-Med designs, develops, manufactures and distributes specialty
printers and data acquisition and analysis systems, including both
hardware and software. These products incorporate technologies used
to acquire, store, analyze and present data in multiple formats.
Astro-Med's historical revenue and net income:
Over the past quarter the company saw an increase in sales of 17.3%
from the past year.
The Peter Lynch Chart suggests that the company is currently
Astro-Med has a market cap of $86.7 million. Its shares are
currently trading at around $11.58 with a P/E ratio of 68.30, a P/S
ratio of 1.30 and a P/B ratio of 1.40. The company also currently
holds a dividend yield of 2.40%.
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