Almost all investors GuruFocus follows have reported their
third quarter portfolios, making it possible to see their buying
trends. GuruFocus' feature,
the S&P 500 Grid
, shows the consensus buys of Gurus during the period.
According to the grid, the S&P stocks the most Gurus bought
were: AIG (
), Citigroup (
), Google (
), JPMorgan Chase (
) and Apple (
The most-purchased stock of the third quarter of 2012 among Gurus
was American International Group (
). Twenty-five Gurus bought the stock. None sold the stock.
AIG's stock rallied 40% year to date to trade for $32.46 per
share on Wednesday.
AIG, the insurance company rescued from collapse by the U.S.
government during the 2008 financial crisis, has seen its revenue
drop by an average rate per share of 35.7% for the last five
years. Book value per share declined at an annual rate of 6.6%
over the last five years.
In the third quarter, the company continued its turn around,
reporting net income of $1.9 billion, increased from a net loss
of $4 billion a year previously. Total revenues increased to
$17.7 billion from $12.72 billion.
Also during the quarter, the U.S. Department of the Treasury sold
approximately $26.5 billion worth of shares, which reduced its
remaining investment in AIG to approximately 234.2 million
shares, or approximately 15.9% of outstanding shares.
AIG has a P/E of 7.1, which is close to a 10-year low. Its P/B is
0.5 and P/S is 0.9.
Twenty-two Gurus bought or added to their existing holdings of
Citigroup in the third quarter. Ten reduced or eliminated their
Citigroup's stock has advanced 36% overall year to date, after a
In the last five years, revenue per share at Citigroup declined
at an annual rate of 41.4% and book value at a rate of 10.7%.
In the third quarter the company reported to having a Tier I
Capital and Tier 1 Common ratio of 13.9% and 12.7%, up from 13.5%
and 11.7%, respectively, a year previously.
Its third quarter net income was $468 million, or $0.15 per
diluted share, a decline from $3.8 billion a year previously. The
quarter's results were impacted by a pre-tax loss of $4.7 billion
from the sale of its 14% interest and other charges related to
its partial ownership of Morgan Stanley Smith Barney, a joint
venture on Sept. 11. Other adjustments related to tightening
credit spreads cut into revenue by several billion dollars.
Excluding all one-time losses, the bank would have earned $3.3
Revenues net if interest expense declined 33% to $14 billion.
Excluding the charges and losses it would have increased 3% to
The bank announced on Oct. 16 that its CEO, Vikram Pandit, had
resigned, and was replaced by board-appointed Michael Corbat. In
the fourth quarter, the company's results of operations could
include costs incurred from Hurricane Sandy.
Citigroup has a P/E of 10.3, which is close to a 10-year low. Its
P/B is 0.5 and P/S is 1.3.
C data by GuruFocus.com
Twenty Gurus either introduced Google to their portfolios or
added to their stakes in the company. Five Gurus either reduced
their shares or removed it from their portfolio.
Google's stock gained 3% year to date.
The company has a five-year annual revenue per share growth rate
of 25.1%, EBITDA growth of 25.1%, free cash flow growth of 41.4%
and book value growth of 26.4%.
Cash on its balance sheet is $45.7 billion and long-term
liabilities and debt amount to $7.2 billion.
In the third quarter Google's revenue increased 45%
year-over-year, surpassing $14 billion for the first time, aided
by the acquisition of Motorola, whose revenues were 18% of total
Google has a P/E of 19.5, P/B of 3.1 and P/S of 5.6.
GOOG data by GuruFocus.com
JPMorgan Chase (
Twenty Gurus bought or added to their existing holdings of
JPMorgan Chase in the third quarter, while eight reduced or sold
out of their positions.
Year to date, JPMorgan Chase stock has gained 22.5%, including a
brief pullback mid-year.
The bank's revenue has declined at a rate of 1%, EBITDA at a rate
of 6.6% and book value at a rate of 7% annually over the past
In the third quarter, it reported net income of $5.7 billion, or
a record $1.40 per share, on revenue of $25.9. In the same period
of 2011, it reported net income of $4.3 billion, or $1.02 per
share, on revenue of $25.9 billion.
Regarding its balance sheet, the bank ended the third quarter
with a Basel I Tier I common ratio of 10.4%, up from 9.9% in the
second quarter, and a Basel III Tier I common ratio estimated at
approximately 8.4%, up from 7.9% in the second quarter.
Citigroup CEO Jamie Dimon commented on his outlook for the
mortgage industry and its effect on the bank's operations in the
third quarter press release:
"Importantly, we believe the housing market has turned the
corner. In our Mortgage Banking business, we were encouraged that
credit trends continued to modestly improve, and, as a result,
the Firm reduced the related loan loss reserves by $900 million.
Despite this improvement, the absolute level of charge-offs
remains elevated. We also expect to see high default-related
expense for a while longer. We are acting responsibly to help
homeowners and prevent foreclosures, offering nearly 1.4 million
mortgage modifications and completing 578,000 since 2009. Credit
trends in our credit card portfolio continued to improve, and the
wholesale credit environment remained stable."
JPMorgan has a P/E of 8.6, which is close to a 10-year low. Its
P/E is 1.62 and P/S is 0.77.
JPM data by GuruFocus.com
To see more stocks that were the most popular among investors
GuruFocus tracks, visit the S&P 500 Grid.About GuruFocus:
GuruFocus.com tracks the stocks picks and portfolio holdings of
the world's best investors. This value investing site offers
stock screeners and valuation tools. And publishes daily articles
tracking the latest moves of the world's best investors.
GuruFocus also provides promising stock ideas in 3 monthly
newsletters sent to