'Biggest Losers' Update – WPO, OI, HST

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Oct 07, 2013
Over 12 months, Washington Post Company (WPO, Financial) is up 71%, Owens-Illinois Inc. (OI, Financial) is up 49% and Host Hotels & Resorts Inc. (HST, Financial) is up 14% but all three companies are among the ‘Biggest Losers’ in the S&P 500.

On October 1, 2013, Jeff Bezos of Amazon.com completed his acquisition of Washington Post Company’s newspaper publishing business. He paid $250 million cash, according to USA Today.



Washington Post Company (WPO)


Up 71% over 12 months, Washington Post Company has a market cap of $4.57 billion; its shares were traded at around $615.52. The P/E ratio is 47.30 and the P/B ratio is 1.70.

Although Washington Post Company is an education and media business, it is most widely known for its newspaper publication, The Washington Post. As a subsidiary of the company, Kaplan Inc. provides a range of educational services for children, students and professionals, both domestically and outside the United States. The company's media operations consist of the ownership and operation of cable television systems, newspaper publishing, television broadcasting and magazine publishing.

The company reported financial results for the second quarter of 2013 with a net income of $44.7 million, down from $51.8 million in the same quarter of 2012. For the same quarter, company revenue was up by 3% at $1,021.9 million, compared to $989.1 million in the same quarter a year ago.

Historical share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, there are seven guru stakeholders and very active insider selling

As of June 30, 2013, the top Guru stakeholder is Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, Financial) (BKR.B) with current shares of 1,727,765 or 23.28% of shares outstanding and 0.94% of his total assets managed. The holding gained 34.3% in the second quarter of 2013.

Mason Hawkins holds 548,310 shares or 7.39% of WPO. Over five years Hawkins gained 44% on 281,795 shares at an average price of $426.22. He also gained 44% on 100,143 shares sold at an average price of $426.09 per share.

Owens-Illinois Inc. (OI)

Up 49% over 12 months, Owens-Illinois Inc. has a market cap of $4.9 billion; its shares were traded at around $29.81. The P/E ratio is 38.50 and the P/B ratio is 4.74.

Established in1903, Owens-Illinois Inc. is a manufacturer of glass containers with 79 glass manufacturing plants located in 21 countries. It produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits and wine. The company also produces packaging for a variety of food items, soft drinks, teas, juices and pharmaceuticals.

Historical share pricing, revenue and net income:

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The company reported financial results for the second quarter of 2013 with net sales of $1.78 billion, similar to the same quarter a year ago. For the quarter the company reported operating profit of $267 million, reflecting little change from the same quarter in 2012.

Guru Action: As of June 30, 2013, there are 10 guru stakeholders and insider activity.

The top Guru stakeholder is First Pacific Advisors with current shares at 6,140,207 or 3.74% of shares outstanding and 1.8% of total assets managed.

In the second quarter of 2013, the firm increased its position by 0.92%, buying 55,800 shares at an average price of $26.99, for a gain of 10.4%. Across a ten-quarter history, the firm gained 19% on 6,140,207 shares bought at an average price of $24.98 per share.

Host Hotels & Resorts Inc. (HST)

Up 14% over 12 months, Host Hotels & Resorts Inc. has a market cap of $13.34 billion; its shares were traded at around $17.78. The P/E ratio is 84.30 and the P/B ratio is 1.86.

Host Hotels & Resorts Inc. is a self-managed and self-administered real estate investment trust, or REIT that owns lodging properties and conducts operations through Host Hotels & Resorts LP. The company's hotels are operated under brand names including Ritz-Carlton, Fairmont, Four Seasons and others.

The company reported financial results for the second quarter ended June 30, 2013, with a 92.1% increase in net income, on an as-adjusted basis, at $121 million, compared to a net income of $63 million in the same quarter in 2012. Hotel revenues were up by 9.4% for the second quarter of 2013, compared to the same quarter a year ago. The company expects its total comparable hotel revenues to increase 4.3% to 5.1% in 2013. The 2013 guidance also looks for a net income ranging from $265 million to $290 million for the year.

Historical share pricing, revenue and net income:

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Guru Action: As of June 30, 2013, there are seven guru stakeholders and very active insider selling.

The top Guru stakeholder is Ken Heebner even after he reduced his position by 35.08%, selling 2,200,000 shares at an average price of $17.65, and gaining 0.7%. His current shares remaining are 4,070,490 or 0.54% of shares outstanding and 1.8% of his total assets managed.

Over five years Heebner gained 123% on 6,320,490 shares at an average price of $7.99 per share. He also gained 1% on 2,250,000 shares sold at an average price of $17.59 per share.



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