Arnold Schneider Sells Out FOE, up 385% - Third Quarter Sells in Review

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The recent portfolio of Arnold Schneider of Schneider Capital Management Corp. includes 120 stocks, 7 of them new, a total value of $1.09 billion and a quarter-over-quarter turnover of 7%. His portfolio is currently weighted with top three sectors: financial services at 34.8%, consumer cyclical at 17.9% and energy at 13.7%. The stocks bought by Guru Schneider averaged a return of 18.78% over 12 months. Among his highest-impact sells in the third quarter of 2013, Schneider sold out over a million shares of Ferro Corp., for a gain of 87%.

Up 385% over 12 months, Ferro Corp. ( FOE ) is an enameling company that provides manufacturers with specialty materials and chemicals to enhance product functionality, durability or beauty. The company reported financial results for the third quarter ended September 30, 2013 with net sales at $408.1 million, almost flat with net sales of $408.9 million in the same quarter of 2012. Ferro Corp.'s gross profit was $84.2 million for the reporting quarter, up from $60.7 million in the same quarter one year ago. Ferro's net income in the third quarter of 2013 was $12.7 million, bouncing from a net loss of ($316.1) million in the third quarter a year ago. Adjusted net income was $12.5 million, up from a net loss of ($1.9) in the third quarter of 2012. Adjusted earnings per diluted share were $0.14 for the reporting quarter, up from a net loss of ($0.02) per share in the same quarter of 2012. Ferro expects adjusted earnings for the fourth quarter of 2013 to be around $0.04 to $0.07 per diluted share, resulting in adjusted earnings of $0.42 to $0.45 per diluted share, for the full year.

Ferro's president and CEO Peter Thomas commented in a company press release: "We continue to make progress on our value creation strategy, making Ferro more competitive and driving increased profitability. We are realizing the benefits of our cost saving initiatives more quickly than previously anticipated and are now expecting total savings for 2013 to be approximately $45 million. More importantly, we estimate that our annual savings run rate at the beginning of 2014 will be approximately $70 million."

Ferro Corp. ( FOE ) Sold Out

Up 225% year-to-date, Ferro Corp. has a market cap of $1.21 billion. The current share price is around 13.93. Shares trade at a P/B of 5.90. The company does not pay a dividend.

Here's the GuruFocus analysis of FOE, showing four warnings .

Guru Action: Arnold Schneider sold out FOE, as of Sept. 30, 2013. He sold 1,109,191shares at an average price of $7.45 per share for an 87% gain.

This trade will impact his portfolio by -0.72%.

Starting in the fourth quarter of 2009, this holding made double-digit and triple-digit gains all the way through 11 quarters. Here's Schneider's trading history:

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Tracking historical share price, revenue and net income:

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See how eight gurus are trading FOE in the third quarter, and find one recent insider buy.



Standard Pacific Corp. ( SPF ): Reduced

Up 19% over 12 months, Standard Pacific Corp., a residential construction company, has a market cap of $2.27 billion. The current share price is around $8.18. Shares trade at a P/E of 5.70. The company does not pay a dividend.

Guru Action: Arnold Schneider reduced his position by 72.25%, as of Sept. 30, 2013. Schneider sold 1,046,503 shares at an average price of $7.92 per share for a 3.3% gain.

This trade impacts his portfolio by -0.79%. Schneider currently owns 401,975 shares after the trade.

Overall, Schneider has averaged a gain of 7% on 1,484,190 shares bought at an average price of $7.66 per share. Selling, he gained of 4% on 1,082,215 shares bought at an average price of $7.89 per share.

Tracking historical share price, revenue and net income:

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Eight gurus traded SPF in the third quarter and there is recent insider selling.

NVR Inc. ( NVR ): Reduced

Up 9% over 12 months, NVR Inc., a residential construction company, has a market cap of $4.41 billion. The current share price is around $969.98. Shares trade at a P/E of 20.70. The company does not pay a dividend.

Guru Action: Arnold Schneider reduced his position by 88.47%, as of Sept. 30, 2013. Schneider sold 8,164 shares at an average price of $904.60 per share for a 7.2% gain.

This trade will impact his portfolio by 0.71%. Schneider currently owns 1,064 shares after the trade.

Over a five-year trading history, Schneider has averaged a gain of 49% on 63,226 shares bought at an average price of $652.76 per share. Selling, he gained of 32% on 168,756 shares bought at an average price of $732.97 per share.

Tracking historical share price, revenue and net income:

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Here's more guru and insider trading of NVR.

Guru Arnold "Arnie" Schneider is president, chief investment officer and principal of Schneider Capital Management Corp., an institutional investment manager located in Wayne, Pa. Value equity investing has been the firm's sole focus since he founded the firm in 1996.

Here's the complete portfolio of Arnold Schneider.



GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: FOE , NVR , SPF

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