Go Fishing with Billionaires - An Ocean of 52-Week Lows

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Sep 13, 2013
It’s time to go fishing with billionaire investors in an ocean full of 52-week lows.

Today the top four industry sectors with the most 52-weeks lows are real estate investment trusts, banks, utilities – regulated, and consumer packaged goods. The GuruFocus special feature 52-week low screener is a rapid-research tool listing 790 stocks currently for the USA, in addition to thousands of others around the world.

Here’s a company update from each featured industry sector:

Sector: REITs

This sector has 81 stocks out of 176 at a 52-week low. The low ratio is 0.46.

Highlight: Realty Income Corporation (O, Financial)

The O share price is currently $39.23 or 29.3% off the 52-week high of $55.48. Its yield is 5.20%.

Down 7% over 12 months, the company has a market cap of $7.69 billion and is traded at a P/E of 39.00.

Realty Income Corporation is an equity real estate investment trust, or REIT. Its main business objective is to generate dependable monthly cash distributions from a consistent and predictable level of funds from operations. The company typically acquires retail store properties under long-term leases with retail chain store operators.

Guru Action: Five gurus currently hold O shares and there is active insider trading.

As of June 30, 2013, the top Guru stakeholder is Jim Simons with 1,042,069 shares or 0.53% of shares outstanding. He bought the shares at an average price of $47.67 for a loss of 17.7%. His five-year history shows that he has bought and sold out a number of times, always with double-digit gains until his most recent new buy. His highest gain with O is 111.1% made in the first quarter of 2009 on 787,400 shares bought at an average price of $18.58.

Tracking share price, revenue and net income:

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Sector: Banks

This sector has 61 stocks out of 657 at a 52-week low. The low ratio is 0.09.



Highlight: Towne Bank Inc. (TOWN, Financial)

The TOWN share price is around $14.40 or 17% off the 52-week high of $17.34. Its yield is 2.40%.

Down 7% over 12 months, Towne Bank Inc. has a market cap of $451.91million and is traded at a P/E of 13.40.

Towne Bank Inc. was incorporated in1998 as a community bank providing financial services to individuals and small and medium-sized businesses. It operates in three segments: Banking, Realty and Insurance.

Guru Action: As of June 30, 2013, Jim Simons is the only Guru stakeholder and there is no insider trading on record. .Simons reduced his position by 13.81%, selling 6,422 shares at an average price of $14.54, for a loss of 1.5%. He has held for seven quarters, taking a loss in six of them. His only gain of 12.5% was made on 20,480 shares bought at an average price of $12.73 in the second quarter of 2012.

Tracking share price, revenue and net income:

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Sector: Utilities – Regulated

This sector has 55 stocks out of 154 at a 52-week low. The low ratio is 0.36.



Highlight: Pepco Holdings Inc. (POM, Financial)

The POM share price is currently $18.17 or 20.0% off the 52-week high of $22.72. Its yield is 5.90%.

Down 5% over 12 months, Pepco Holdings Inc. has a market cap of $4.5 billion and is traded at a P/E of 13.90.

Incorporated in 2001, Pepco Holdings Inc. is a public utility holding company whose subsidiaries are engaged primarily in electricity and natural gas delivery, and competitive energy generation, marketing and supply. Pepco is engaged in the transmission and distribution of electricity in Washington, D.C. and Maryland.

Guru Action: Four gurus currently hold POM shares, and insider trading is very active.

As of June 30, 2013, Paul Tudor Jones made a new buy of 12,800 shares at an average price of $21.33 for a loss of 15.3%. He has held for seven quarters taking a loss in every quarter since he bought new in the fourth quarter of 2010.

Tracking share price, revenue and net income:

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Sector: Consumer Packaged Goods


This sector has 34 stocks out of 169 at a 52-week low. The low ratio is 0.2.



Highlight: Origin Agritech Ltd. (SEED, Financial)

The SEED share price is currently $1.43 or 29.6% off the 52-week high of $2.03.

Down 2% over 12 months, Origin Agritech has a market cap of $33.1 million and is traded at a P/B of 0.90.

Origin Agritech Ltd. was incorporated in the British Virgin Islands in 2005. It is a technology-focused crop seed company serving China. The company's activities include the specialization in the research and development, production, and sales and marketing of crop seeds (corn, rice, cotton and canola) throughout China, where Origin Agritech Ltd. received approval in 2009 for commercial use of the world's first genetically modified phytase corn, the first genetically modified corn seed product in China.

Guru Action: Two gurus currently hold SEED shares and there is insider trading.

As of June 30, 2013, Jim Simons reduced his position by 25.43%, selling 66,500 shares at an average price of $1.63 per share for a 12.3% loss.

Tracking share price, revenue and net income:

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The 52-week low screener can help investors discover deep value along with an assurance factor that billionaire stakeholders are betting on these companies.

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