, the billionaire hedge fund manager of SAC Capital Advisors, has
been adding to holdings of companies of which he owns a
substantial portion, according to
GuruFocus' Real Time Picks
. Though the SEC requires investors to report their holdings once
a quarter, if they own more than 5% of a company, they are
required to report any buys and sells of it within a few days.
GuruFocus Real Time Picks reports these trades of gurus' largest
On May 1, Cohen increased his holding of
Clearwater Paper (
8.8%, adding 132,821 shares at approximately $32 per share, and
bringing his total holding to 1,640,000 shares or 6.32% of shares
outstanding. Cohen opened his position in Clearwater Paper in the
first quarter of 2011 at approximately $20 per share.
Clearwater Paper, a standalone company, produces pulp and
paperboard at six facilities across the country namely Lewiston,
Idaho; and Las Vegas, Nev. Clearwater Paper has a market cap of
$780.9 million; its shares were traded at around $33.03 with a
P/E ratio of 16.8 and P/S ratio of 0.4.
Over the last five years, Clearwater Paper Corp.'s stock has
climbed 482%. In the last year, however, it has tumbled 15.4%.
Stephen Cohen suggested on May 2 that the company split itself up
in order to increase shareholder value.
In the letter, Cohen said that the stock is "deeply undervalued
by the public markets." He opined that the parts of the company
are worth more separate than in cohesion.
"We believe there may be significant strategic interest in some
or all of the Company's assets that could provide additional
value for shareholders beyond the standalone analysis," the
Clearwater it organized into two operating segments: Consumer
Products- which represents approximately 57% of the company's net
sales- and Pulp and Paperboard - which represents approximately
43%. Clearwater itself spun off of Potlatch Corporation on Dec.
16, 2008, and before that was a wholly owned subsidiary.
The company's operations may have played a part in the depressed
market interest in the stock more so than unrecognized value. For
instance, the company's return on equity and return on assets
have both declined for the three years since 2009. In addition,
gross margins were compressed from 15.8% in 2009 to 11.7% in
2011, and net margins from 14.6% in 2009 to 2.1% in 2011. Free
cash flow also fell to a negative $52.9 million in 2011 after
three years in positive territory.
Cohen increased his holding of
Select Comfort (
by 1503.95%, or 2,671,372 shares, on April 30 at an average price
of $29. Cohen initiated his position in the third quarter of 2010
at an average price of $6.90 per share. The company's stock has
been on a near 40% tear year to date.
Select Comfort is engaged in the manufacture, specialty retailing
and direct marketing of premium quality, innovative
adjustable-firmness beds and other sleep-related products. Select
Comfort has a market cap of $1.62 billion; its shares were traded
at around $30.29 with a P/E ratio of 24 and P/S ratio of 2.2.
Select Comfort reported very positive results for the first
quarter ended March 31, 2012. It was its 13
consecutive quarter of double-digit, year-over-year operating
income growth. First-quarter earnings were $0.39 per share, a 50%
year-over-year increase, and net sales increased 36% to $262
million, compared to $192 million the previous year, driven by
company controlled sales growth of 34% -- a quarterly record.
Shelly Ibach, chief operating officer and incoming president and
CEO, Select Comfort, stated, "Our record comparable-sales
increase in the quarter reflects the strength of our
customer-focused growth strategy. We continue to invest in
broadening awareness for the differentiated Sleep Number brand
and leveraging our position as a national retailer with
exclusive, company-controlled distribution. As we look ahead, we
are confident in our ability to continue generating
earnings-per-share growth of at least 20 percent per year for the
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