, founder of SAC Capital, has been in the midst of quite a bit of
controversy recently as an insider trading scandal stretching
back several years has finally come into the limelight. SAC
Capital and several of its employees have been charged with
securities fraud as a result of illegal insider trading. In light
of all of the firm's recent controversy, several big clients,
including Blackstone Group (
) and Morgan Stanley (
), have removed their money and left SAC Capital.
Despite the fact some of his largest investors have taken their
money and left,
made some notable purchases on June 5. Cohen increased his
holdings in the advertising company Lamar and bought into
educational company ITT Educational. As of the most recent
quarter Cohen owned 1,498 stocks valued at over $20 billion.
Lamar Advertising Company (
Steven Cohen upped his stake in Lamar Advertising Company by
128.24%. Cohen added a total of 2,355,793 shares to his holding
at an average price of $43.47 per share; this transaction
represents a 0.59% impact to his portfolio. Since his buy, the
price per share has increased approximately 5%.
Cohen's historical holding history of Lamar:
[size=13px; line-height: 1.22]The guru now owns a total of
4,192,758 shares of Lamar, representing about 4.6% of the
company's shares outstanding. [/size]
About Lamar Advertising:
Lamar Advertising Company is a leading outdoor advertising
company currently operating over 150 outdoor advertising
companies in 44 states, Canada and Puerto Rico, logo businesses
in 22 states and the province of Ontario, Canada and over 60
transit advertising franchises in the United States, Canada and
Recent Happenings at Lamar:
Steven Cohen increased his holdings in Lamar Advertising as the
company was being oversold. On June 5, Lamar Advertising hit the
Relative Strength Index, or RSI, of 27.3 meaning that the company
was being oversold. A stock is considered to be oversold if the
RSI reading falls below 30. Steven Cohen took advantage of the
overselling of Lamar to buy an additional 2 million shares of the
Financials of Lamar:
In the company's most recent quarterly release it reported:
� A 6.5% increase in net revenue, first quarter
revenue 2013 was $283.5 million versus $266.2 million from the
first quarter of 2012.
� The first quarter net loss was $6.1 million compared
to the net loss of $22.8 million in the same quarter 2012.
� The FCF increased 13% to $49.9 million, up from
$44.2 million in the same period 2012.
Lamar Advertising's guidance reported that they expect the net
revenue to be approximately $322 million to $325 million,
representing a pro forma increase of 2% to 3%.
The analysis on Lamar shows that the company's operating margin
has been consistently expanding and that the P/S ratio is close
to a five-year high of 3.8.
Lamar Advertising's historical P/S and P/B ratios:
The company's price in comparison to its revenue and net income:
Lamar Advertising has a market cap of $3.98 billion; its shares
were traded at around $44.26 with a P/E ratio of 159.40 and a P/S
ratio of 3.40. Lamar Advertising had an annual average earnings
growth of 4.4% over the past 10 years.
Lamar Advertising is popular among the gurus. There are currently
14 gurus that hold a stake in Lamar. To see the shares these
gurus hold as well as their holding history, click here.
ITT Educational Services (
Also on June 5, Steven Cohen bought into ITT Educational
Services. Cohen made this buy as the price of ITT Educational
stock began to rebound from its 10-year low of $12.27 which it
hit in April. Cohen bought 1,230,621 shares at an average price
of $25.06, representing a 0.17% impact to SAC Capital's
portfolio. Since his buy, the price per share has dropped about
2% to approximately $24.66 per share.
Cohen previously owned shares of ITT Educational. He sold out of
his shares in the fourth quarter 2011. Cohen's holding history of
ITT Educational is as follows:
About ITT Educational:
ITT Educational Services is the holding company for ITT Technical
Institutes and Daniel Webster College. ITT Technical Institutes
are a private college system focused primarily on
technology-oriented programs of study. There are currently over
140 ITT schools in 39 states. ITT offers seven programs which
provide career-focused, degree programs to over 70,000 students.
Recent Happenings at ITT Educational:
There has been a lot of news recently on the for-profit education
industry. The oftentimes highly un-favored sector of the market
seems to be making a turnaround. The industry's troubles began in
2010, when Congress began to question whether or not these
companies were necessary. These companies' students had poor
graduation rates, after they graduated they couldn't find jobs
and without jobs many of the students were unable to repay
government-backed loans. Currently the default rate on student
loans at these institutions now exceeds 9%, which is
significantly higher than any other higher education system.
Within the past month, the for-profit educations saw some of the
sharpest gains in the market. The rally in for-profit schools
began in the middle of the earnings season as many of the schools
in the sector did not do as poorly as expected.
The following chart shows ITT Educational's one-month gains as
well as the gains made by its competitors:
ITT Educational Services' Financials:
In ITT Educational's First Quarter Results, the company reported:
� Revenue of $287.7 million, a 15.8% decrease from the
same quarter 2012.
� The operating income decreased 47.6% from 2012 to
� New student enrollment in the first quarter of 2013
decreased 3.6% to 17,412 compared to 18,067 in the same period in
2012. Total student enrollment decreased 14.2% to 61,039 as of
March 31, 2013 compared to 71,123 as of March 31, 2012.
ITT Educational Services has been actively buying back its own
stock. Over the past four years, the number of shares outstanding
has declined 35%.
The analysis of ITT Educational reports that the operating margin
has been in decline for the past five years. The annual rate of
decline per year is 5.5%.
The Peter Lynch Valuation Chart shows that the company appears to
The 10-year financials on ITT Educational also shows that the
company's revenue and earnings growth had been stably growing up
until the past year.
ITT Educational has a market cap of $616.5 million; its shares
were traded at around $25.97 with a P/E ratio of 5.40 and a P/S
ratio of 0.50. The company had an annual average earnings growth
of 25.8% over the past 10 years. GuruFocus rated ITT Educational
the business predictability rank of 4.5-star.
There are currently eight gurus that maintain holdings in ITT
Educational. To see these gurus, the shares they hold and their
holding history, click here.
You can view Steven Cohen's current portfolio here. Also
check out his Undervalued Stocks, Top Growth Companies and High
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