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Appaloosa Management, L.P. is a Short Hills, NJ-based hedge fund management firm founded by David A. Tepper. The firm manages over $4 bn in equities and has beaten the S&P 500 consistently by a large margin.

I discussed the Top 15 Buys of Appaloosa in my previous article here. In addition to buys, it is also interesting to look at top companies where Appaloosa is booking profit and selling its holdings. The following is a list of Appaloosa’s top five sell outs and position decreases in the last quarter, as released in its most recent 13F filing with the SEC:


Top Sell Outs by Market Value

Company Name

Ticker

MV Change (USD $)

Current Position

Change In Position

Cisco Systems Inc

CSCO

-122,387,272

0

-6,049,791

Johnson & Johnson

JNJ

-81,776,647

0

-1,322,177

Semiconductor HOLDRS Trust

SMH

-55,626,300

0

-1,710,000

General Motors Co

GM

-50,904,102

0

-1,381,012

Capital One Financial Corp

COF

-43,666,943

0

-1,026,009


Top Position Decreases By Market Value

Company Name

Ticker

MV Change (USD $)

Current Position

Change In Position

Citigroup Inc

C

-217,134,912

7,661,686

-4,088,450

Wells Fargo & Co

WFC

-133,155,131

3,091,560

-4,368,540

Bank of America Corp

BAC

-104,913,770

17,215,849

-7,851,695

Fifth Third Bancorp

FITB

-93,042,395

3,306,006

-6,159,000

Suntrust Banks Inc

STI

-81,605,759

1,460,899

-2,732,191


Here are some of the specifics about these companies, including a brief description of their business, growth expectations (topline and bottomline) and Valuation:

Sell Outs

Cisco Systems, Inc. designs, manufactures, and sells internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. Appaloosa sold all its holding (6,049,791 shares) in Cisco last quarter. Cisco’s EPS forecast for the current year is $1.60 and next year is $1.73. According to consensus estimates, its topline is expected to grow 7.50% in the current year and 6.00% next year. It is trading at a forward P/E of 9.45. Out of 36 analysts covering the company, 15 are positive and have buy ratings, one has a sell rating and 20 have hold ratings.

Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the health care field. Appaloosa sold all its holding (1,322,177 shares) in Johnson & Johnson last quarter. Johnson and Johnson’s EPS forecast for the current year is $4.95 and next year is $5.26. According to consensus estimates, its topline is expected to grow 6.00% in the current year and 5.20% next year. It is trading at a forward P/E of 12.46. Out of 21 analysts covering the company, 10 are positive and have buy ratings and 11 have hold ratings.

Semiconductor HOLDRS Trust issues depositary receipts called Semiconductor HOLDRS, representing an undivided beneficial ownership in the United States-traded common stock of companies that develop, manufacture and market integrated circuitry and other products known as semiconductors, which allow for speed and functionality in components used in computers and other electronic devices. Appaloosa sold all its holding (1,710,000 shares) in Semiconductor HOLDRS Trust ETF last quarter.

General Motors Company is a global automotive company. It develops, produces and markets cars, trucks and parts worldwide. GM also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial), formerly AmeriCredit Corp. (AmeriCredit). Appaloosa sold all its holding (1,381,012 shares) in General Motor’s last quarter. General Motor’s EPS forecast for the current year is $4.00 and next year is $4.94. According to consensus estimates, its topline is expected to grow 7.60% in the current year and 8.60% next year. It is trading at a forward P/E of 6.27. Out of 15 analysts covering the company, 12 are positive and have buy ratings and three have hold ratings.

Capital One Financial Corporation is a diversified financial services holding company. The Company and its subsidiaries offer a range of financial products and services to consumers, small businesses and commercial clients through branches, the Internet and other distribution channels. It operates in three business segments: Credit Card, Consumer Banking and Commercial Banking. Appaloosa sold all its holding (1,026,009 shares) in Capital One last quarter. Capital One’s EPS forecast for the current year is $6.66 and next year is $5.77. According to consensus estimates, its topline is expected to remain flat in the current year and grow 2.00% next year. It is trading at a forward P/E of 9.37. Out of 22 analysts covering the company, 9 are positive and have buy ratings, one has a sell rating and 12 have hold ratings.

Position Decreases

Citigroup Inc. is a global diversified financial services holding company. Appaloosa sold 4,088,450 shares of Citi last quarter and now holds 7,661,686 shares in the company. Citi’s EPS forecast for the current year is $4.16 and next year is $5.34. According to consensus estimates, its topline is expected to decline 7.00% in the current year and grow 5.70% next year. It is trading at a forward P/E of 7.52. Out of 21 analysts covering the company, 13 are positive and have buy ratings, two have sell ratings and six have hold ratings.

Wells Fargo & Company is a diversified financial services company. The Company provides banking, insurance, investments, mortgage banking, investment banking, retail banking, brokerage, and consumer finance through banking stores, the Internet and other distribution channels. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. Appaloosa sold 4,368,540 shares of Wells Fargo & Company last quarter and now holds 3,091,560 shares in the company. Wells’ EPS forecast for the current year is $2.77 and next year is $3.45. According to consensus estimates, its topline is expected to decline 4.00% in the current year and grow 4.30% next year. It is trading at a forward P/E of 7.98. Out of 25 analysts covering the company, 15 are positive and have buy ratings, two have sell ratings and eight have hold ratings.

Bank of America Corporation is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Appaloosa sold 7,851,695 shares of Bank of America Corporation last quarter and now holds 17,215,849 shares in the company. Bank of America’s EPS forecast for the current year is $1.06 and next year is $1.71. According to consensus estimates, its topline is expected to decline 4.10% in the current year and grow 5.50% next year. It is trading at a forward P/E of 6.68. Out of 26 analysts covering the company, 14 are positive and have buy ratings and 12 have hold ratings.

Fifth Third Bancorp is a diversified financial services company. The Bancorp operates in four business segments: Commercial Banking, Branch Banking, Consumer Lending and Investment Advisors. Appaloosa sold 6,159,000 shares of Fifth Third Bancorp last quarter and now holds 3,306,006 shares in the company. Fifth Third Bancorp’s EPS forecast for the current year is $1.15 and next year is $1.44. According to consensus estimates, its topline is expected to decline 6.60% in the current year and grow 4.30% next year. It is trading at a forward P/E of 8.60. Out of 25 analysts covering the company, 14 are positive and have buy ratings, one has a sell rating and ten have hold ratings.

SunTrust Banks, Inc. is a commercial banking organization. Through its principal subsidiary, SunTrust Bank, the Company provides deposit, credit, and trust and investment services. Additional subsidiaries provide mortgage banking, asset management, securities brokerage, capital market services, and credit-related insurance. Appaloosa sold 2,732,191 shares of SunTrust Banks last quarter and now holds 1,460,899 shares in the company. SunTrust Banks’ EPS forecast for the current year is $1.16 and next year is $2.32. According to consensus estimates, its topline is expected to decline 3.20% in the current year and grow 3.10% next year. It is trading at a forward P/E of 11.72. Out of 27 analysts covering the company, eight are positive and have buy ratings, two have sell ratings and 17 have hold ratings.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Top Sells of David Tepper's Appaloosa Management