Weekly Guru Bargains Highlights: Southwest Airlines Co, CBS Corp, Ford Motor Company, Con-way Inc, Johnson Controls Inc.

Author's Avatar
Feb 16, 2009
Last week's top five guru bargain stocks were Southwest Airlines Co, CBS Corp, Ford Motor Company, Con-way Inc, and Johnson Controls Inc. According to GuruFocus updates, these stocks have declined the most since Gurus have bought.


Southwest Airlines Co. (LUV, Financial): Down 26% Since John Hussman Bought In the Quarter Ended on 2008-12-31


John Hussman initiated holdings in Airlines company Southwest Airlines Co. during the quarter ended 12/31/2008. He owned 1,500,000 shares of as of 12/31/2008. Southwest Airlines is a major domestic airline that provides primarily shorthaul high-frequency point-to-point low-fare service. It has a market cap of $5.2 billion; its shares were traded at around $7.29 with a P/E ratio of 17.9 and P/S ratio of 0.47. The dividend yield of Southwest Airlines Co. stocks is 0.26%. Southwest Airlines Co. had an annual average earning growth of 4.3% over the past 10 years. GuruFocus rated Southwest Airlines Co. the business predictability rank of 2-star.


Southwest Airlines Co. recently reported its fourth quarter 2008 results. The company also announced that it reported its 36 th consecutive year of profitability for the company. It reported an income of $0.24 per diluted share, although this was way lower than $0.84 per diluted share in the fourth quarter of 2007.


John Hussman bought 1,500,000 shares in the quarter that ended on 12/31/2008, which is 0.38% of the $3.37 billion portfolio of Hussman Economtrics Advisors, Inc.. PRIMECAP Management owns 61,643,101 shares as of 09/30/2008, which accounts for 1.6% of the $55.92 billion portfolio of PRIMECAP Management. Brian Rogers, George Soros, and Arnold Schneider all sold out their holdings in the quarter that ended on 12/31/2008.


CBS Corp. (CBS, Financial): Down 23% Since John Keeley Bought In the Quarter Ended on 2008-12-31


John Keeley initiated holdings in Media company CBS Corp. during the quarter ended 12/31/2008. He owned 25,000 shares of as of 12/31/2008.


CBS Corporation is a mass media company with constituent parts that reach back to the beginnings of the broadcast industry as well as newer businesses that operate on the leading edge of the media industry. The Company has a market cap of $3.89 billion; its shares were traded at around $5.81 with a P/E ratio of 2.8 and P/S ratio of 0.28. The dividend yield of CBS Corp. stocks is 18.88%.


CBS Corporation reported its results for the third quarter of 2008. The company said that it had revenues of $3.4 billion, up 3% compared with the third quarter of 2007. “In the current economy, every company must keep a firm eye on costs and manage each business with


distinction,” said Sumner Redstone, Executive Chairman, CBS Corporation. “Leslie and his team are


doing just that, and I’m confident that they will continue to position CBS for success now and in the future.”


John Keeley bought 25,000 shares in the quarter that ended on 12/31/2008, which is less than 0.01% of the $6 billion portfolio of Keeley Fund Management. David Dreman owns 154,840 shares as of 09/30/2008, an increase of 68.14% from the previous quarter. Brian Rogers owns 3,000,000 shares as of 12/31/2008, a decrease of 50% of from the previous quarter. Michael Price sold out his holdings in the quarter that ended on 09/30/2008.


Director, 10% Owner Sumner M Redstone sold 17,000,000 shares of CBS stock on 10/10/2008 at the average price of $7.1; the price of the stock has decreased by 18.17% since.


Ford Motor Company (F, Financial): Down 23% Since John Keeley Bought In the Quarter Ended on 2008-12-31


John Keeley initiated holdings in the automobiles company Ford Motor Company during the quarter ended 12/31/2008. He owned 50,000 shares of as of 12/31/2008. Ford Motor Company produces cars and trucks. The company has a market cap of $4.23 billion; its shares were traded at around $1.76 with and P/S ratio of 0.03.


John Keeley bought 50,000 shares in the quarter that ended on 12/31/2008, which is less than 0.01% of the $6 billion portfolio of Keeley Fund Management. Charles Brandes owns 116,640,234 shares as of 09/30/2008, which accounts for 2.2% of the $27.58 billion portfolio of Brandes Investment. Ken Heebner owns 74,964,000 shares as of 09/30/2008, which accounts for 3.45% of the $11.29 billion portfolio of CAPITAL GROWH MANAGEMENT LP. Four gurus sold out their positions in Ford Motor Company (F).


Group Vice President Mei Wei Cheng bought 50,000 shares of F stock on 08/22/2008 at the average price of $4.47; the price of the stock has decreased by 60.63% since.


Con-way Inc. (CNW, Financial): Down 26% Since Richard Aster Jr Bought In the Quarter Ended on 2008-12-31


Richard Aster Jr added to his holdings in Trucking company Con-way Inc. by 15.76% during the quarter ended 12/31/2008. He owned 560,500 shares of as of 12/31/2008. Con-way Inc.is a freight transportation and logistics company with businesses in less-than-truckload and full truckload freight services brokerage logistics warehousing supply chain management and trailer manufacturing. The company has a market cap of $1.01 billion; its shares were traded at around $21 with a P/E ratio of 7.8 and P/S ratio of 0.2. The dividend yield of Con-way Inc. stocks is 1.82%. Con-way Inc. had an annual average earning growth of 1.2% over the past 10 years.


Con-way Inc. recently reported its fourth quarter 2008 results. The company announced that its revenue was $1.125 billion, compared to 1.2 billion in the fourth quarter of 2007. The company also announced that it had an Operating Loss of about $35 million, compared to an Operating Income of $70 million in the fourth quarter 2007.


HOTCHKIS & WILEY owns 377,599 shares as of 09/30/2008, an increase of 2290.02% from the previous quarter. Richard Aster Jr owns 560,500 shares as of 12/31/2008, which accounts for 0.77% of the $1.94 billion portfolio of Meridian Fund. Richard Pzena owns 284,775 shares as of 09/30/2008, a decrease of 23.75% of from the previous quarter. This position accounts for 0.1% of the $13.21 billion portfolio of Pzena Investment Management LLC.


SVP, General Counsel & Sec Jennifer Pileggi bought 1,000 shares of CNW stock on 11/10/2008 at the average price of $29.18; the price of the stock has decreased by 28.03% since.


Johnson Controls Inc. (JCI, Financial): Down 22% Since Richard Aster Jr Bought In the Quarter Ended on 2008-12-31


Richard Aster Jr initiated holdings in Auto Parts company Johnson Controls Inc. during the quarter ended 12/31/2008. He owned 17,900 shares of as of 12/31/2008. Johnson Controls Inc. is a global market leader in automotive systems and facility management and control. It has a market cap of $7.43 billion with a P/E ratio of 6.7 and P/S ratio of 0.2. The dividend yield of Johnson Controls Inc. stocks is 4.16%. Johnson Controls Inc. had an annual average earning growth of 7.9% over the past 10 years. GuruFocus rated Johnson Controls Inc. the business predictability rank of 5-star.


Johnson Controls Inc. recently reported its first quarter 2009 results. It said that its first quarter profit was up 45%. The company announced net income of -14 cents per diluted share, compared to a gain of 39 cents per diluted share in the first quarter of 2009.


Richard Aster Jr bought 17,900 shares in the quarter that ended on 12/31/2008, which is 0.02% of the $1.94 billion portfolio of Meridian Fund. Kenneth Fisher owns 81,250 shares as of 09/30/2008, which accounts for 0.01% of the $31.63 billion portfolio of Fisher Asset Management, LLC. Chris Davis owns 396,723 shares as of 09/30/2008, which accounts for 0.02% of the $74.87 billion portfolio of Davis Selected Advisers.


Vice President Beda Bolzenius bought 48,000 shares of JCI stock on 02/04/2009 at the average price of $12.5; the price of the stock has increased by 9.28% since.


For the complete list of stocks that Guru Bargains, go to: Value Bargains of Gurus.