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Canyon Capital Advisors LLC is a hedge fund management firm founded by Joshua S. Friedman and Mitchell R. Julis. The firm manages over $10 billion in assets (equity plus fixed income) through the Canyon family of hedge funds, CSOF II Fund (Cayman), Ltd. and the CSOF II Fund, L.P.
I discussed the Top Buys of Canyon in my previous article here. In addition to buys, it is also interesting to have a look at top companies where Canyon Capital is booking profit and selling its holdings. The following is a list of its top 15 sells in the last quarter, as released in its most recent 13F filing with the SEC.
Stock
Symbol
Shares Held -12/31/2010
Shares Held - 03/31/2011
Talisman Energy Inc
2,094,060
0
Williams Companies Inc
2,164,840
614,445
Quicksilver Resources Inc
1,499,890
0
EOG Resources Inc
167,600
0
Tenet Healthcare Corp
4,803,638
2,166,485
Comcast Corporation
1,060,924
479,054
Charter Communications Inc
1,033,338
854,429
Sinclair Broadcast Group Inc
837,077
148,884
Chimera Investment Corporation
4,999,816
3,178,470
Hess Corporation
377,000
321,845
First Republic Bank
150,000
0
Johnson Controls Inc
100,000
0
Penn National Gaming Inc
470,600
367,850
JPMorgan Chase & Co
1,609,912
1,541,321
Nvidia Corporation
133,200
0
Here are some of the specifics about these companies, including a brief description of their business, growth expectations (top line and bottom line) and valuation:
Talisman Energy Inc
Canyon sold all (2,094,060) shares of Talisman Energy Inc. last quarter. The share price of the company has increased from $22.19 on 31 December 2010 to $24.7 on 31 March 2011.
Talisman Energy Inc is a global diversified upstream oil and gas company. The company's business activities include exploration, development, production, transportation and marketing of crude oil, natural gas and natural gas liquids. Talisman's three main operating areas are North America, the North Sea and Southeast Asia. Talisman’s EPS forecast for the current year is $1.16 and next year is $1.67. According to consensus estimates, its top line is expected to grow 29.10% in the current year and 22.90% next year. It is trading at a forward P/E of 11.92. Out of 12 analysts covering the company, 10 are positive and have buy ratings, one has a hold rating and one has a sell rating.
Williams Companies Inc
Canyon sold 1,550,395 shares of Williams Companies last quarter and now holds a total of 614,445 shares. This position is 1.15% of its portfolio. The share price of the company has increased from $24.72 on 31 December 2010 to $31.18 on 31 March 2011.
The Williams Companies Inc is an integrated natural gas company focused on exploration and production, midstream gathering and processing, and interstate natural gas transportation primarily in the Rocky Mountains, Gulf Coast, Pacific Northwest, Eastern Seaboard and the Marcellus Shale in Pennsylvania. Williams’ EPS forecast for the current year is $1.47 and next year is $1.74. According to consensus estimates, its top line is expected to grow 6.70% in the current year and 6.00% next year. It is trading at a forward P/E of 17.57. Out of 11 analysts covering the company, nine are positive and have buy ratings and two have hold ratings.
Quicksilver Resources Inc
Canyon sold all (1,499,890) shares of Quicksilver Resources Inc last quarter. The share price of the company has decreased from $14.74 on 31 December 2010 to $14.31 on 31 March 2011.
Quicksilver Resources Inc is an independent energy company. The company is primarily engaged in exploration, development and production of unconventional natural gas onshore in North America. Quicksilver owns producing oil and natural gas properties in the United States, principally in Texas, Colorado, Wyoming and Montana, and Canada in Alberta and British Columbia. Quicksilver’s EPS forecast for the current year is $0.24 and next year is $0.39. According to consensus estimates, its top line is expected to decline 4.50% in the current year and grow 15.80% next year. It is trading at a forward P/E of 36.64. Out of 24 analysts covering the company, eight are positive and have buy ratings, 15 have hold ratings and one has a sell rating.
EOG Resources Inc
Canyon sold all (167,600) shares of EOG Resources last quarter. The share price of the company has increased from $91.41 on 31 December 2010 to $118.51 on 31 March 2011.
EOG Resources, together with its subsidiaries, explores, develops, produces and markets natural gas and crude oil primarily in producing basins in the United States, Canada, The Republic of Trinidad and Tobago, the United Kingdom, and The People's Republic of China. As of December 31, 2010, EOG's total net reserves were 1,950 million barrels of oil equivalent, of which 386 million barrels were crude oil and condensate reserves, 152 were natural gas liquids reserves and 8,470 billion cubic feet were natural gas reserves. EOG’s EPS forecast for the current year is $3.78 and next year is $6.17. According to consensus estimates, its top line is expected to grow 29.90% in the current year and 24.50% next year. It is trading at a forward P/E of 17.92. Out of 33 analysts covering the company, 13 are positive and have buy ratings and 20 have hold ratings.
Tenet Healthcare Corp
Canyon sold 2,637,153 shares of Tenet Healthcare Corp last quarter and now holds a total of 2,166,485 shares. This position is 0.97 % of its portfolio. The share price of the company has increased from $6.69 on 31 December 2010 to $7.45 on 31 March 2011.
Tenet Healthcare Corporation provides healthcare services through the operation of acute care hospitals and related health care facilities. All of Tenet’s operations are conducted through its subsidiaries and affiliates. Tenet’s EPS forecast for the current year is $0.42 and next year is $0.48. According to consensus estimates, its top line is expected to grow 5.90% in the current year and 3.90% next year. It is trading at a forward P/E of 13.29. Out of 19 analysts covering the company, nine are positive and have buy ratings and 10 have hold ratings.
Comcast Corporation
Canyon sold 581,870 shares of Comcast Corporation last quarter and now holds a total of 479,054 shares in the company. This position is 0.71% of its portfolio. The share price of the company has increased from $21.97 on 31 December 2010 to $24.72 on 31 March 2011.
Comcast Corporation is a provider of video, high-speed Internet and phone services to residential and business customers in the United States. As of December 31, 2010, the company’s cable systems served approximately 22.8 million video customers, 17 million high-speed Internet customers and 8.6 million phone customers, and passed over 51 million homes and businesses in 39 states and the District of Columbia. Comcast’s EPS forecast for the current year is $1.60 and next year it is $1.91. According to consensus estimates, its top line is expected to grow 45.90% in the current year and 6.90% in the next year. It is trading at a forward P/E of 12.69. Out of 30 analysts tracking the stock, 19 are positive and have buy ratings and 11 have hold ratings.
Charter Communications Inc
Canyon sold 178,909 shares of Charter Communications Inc last quarter and now holds a total of 854,429 shares. This position is 2.61% of its portfolio. The share price of the company has increased from $38.94 on 31 December 2010 to $50.63 on 31 March 2011.
Charter Communications, Inc. is a provider of cable services in the United States, offering a variety of entertainment, information and communications solutions to residential and commercial customers. Charter’s EPS forecast for the current year is -$0.21 and next year is $2.1. According to consensus estimates, its top line is expected to grow 2.80% in the current year and 4.50% next year. It is trading at a forward P/E of 27.51. Out of nine analysts covering the company, three are positive and have buy ratings and six have hold ratings.
Sinclair Broadcast Group Inc
Canyon sold 688,193 shares of Sinclair Broadcast Group Inc last quarter and now holds a total of 148,884 shares. This position is 0.11% of its portfolio. The share price of the company has increased from $8.18 on 31 December 2010 to $12.54 on 31 March 2011.
Sinclair Broadcast Group, Inc. is a diversified television broadcasting company, which owns or provides certain programming, operating or sales services to television stations. Sinclair’s EPS forecast for the current year is $1.03 and next year is $1.27. According to consensus estimates, its top line is expected to decline 0.30% in the current year and grow 7.20% next year. It is trading at a forward P/E of 7.50. All five analysts covering the company are positive and have buy ratings.
Chimera Investment Corporation
Canyon sold 1,821,346 shares of Chimera Investment Corporation last quarter and now holds a total of 3,178,470 shares. This position is 0.76% of its portfolio .The share price of the company has decreased from $4.11 on 31 December 2010 to $3.96 on 31 March 2011.
Chimera Investment Corporation is a specialty finance company that invests, either directly or indirectly through its subsidiaries, in residential mortgage-backed securities (RMBS), residential mortgage loans, real estate-related securities and various other asset classes. Chimera’s EPS forecast for the current year is $0.60 and next year is $0.60. According to consensus estimates, its top line is expected to grow 17.00% in the current year and 0.10% next year. It is trading at a forward P/E of 6.32. Out of 11 analysts covering the company, five are positive and have buy ratings and six have hold ratings.
Hess Corporation
Canyon sold 55,155 shares of Hess Corporation last quarter and now holds a total of 321,845 shares. This position is 1.65% of its portfolio. The share price of the company has increased from $76.54 on 31 December 2010 to $85.21 on 31 March 2011.
Hess Corporation is a global integrated energy company that operates in two segments: Exploration and Production, and Marketing and Refining. The E&P segment explores for, develops, produces purchases, transports and sells crude oil and natural gas. Hess’ EPS forecast for the current year is $7.61 and next year is $8.31. According to consensus estimates, its top line is expected to grow 15.20% in the current year and 3.60% next year. It is trading at a forward P/E of 9.46. Out of 18 analysts covering the company, 12 are positive and have buy ratings, five have hold ratings and one has a sell rating.
First Republic Bank
Canyon sold all (150,000) shares of First Republic Bank Common Stock Group Inc last quarter. The share price of the company has increased from $29.12 on 31 December 2010 to $30.91 on 31 March 2011.
First Republic Bank is a state-chartered commercial bank and trust company. The company is a provider of private banking and wealth management services. The services offered by the company include private banking, private business banking, real estate lending, wealth management and trust services. First Republic Bank’s EPS forecast for the current year is $2.6 and next year is $2.51. According to consensus estimates, its top line is expected to grow 4.20% in the next year. It is trading at a forward P/E of 13.10. Out of seven analysts covering the company, two are positive and have buy ratings and five have hold ratings.
Johnson Controls Inc
Canyon sold all (100,000) shares of Johnson Controls Inc last quarter. The share price of the company has increased from $38.2 on 31 December 2010 to $41.57 on 31 March 2011.
Johnson Controls provides automotive interiors. For buildings, the company offers products and services that optimize energy use. It also provides batteries for automobiles and hybrid electric vehicles, along with related systems engineering, marketing and service expertise. Johnson’s EPS forecast for the current year is $2.44 and next year is $3.27. According to consensus estimates, its top line is expected to grow 15.20% in the current year and 12.00% next year. It is trading at a forward P/E of 11.51. Out of 26 analysts covering the company, 17 are positive and have buy ratings and nine have hold ratings.
Penn National Gaming Inc
Canyon sold 102,750 shares of Penn National Gaming Inc last quarter and now holds a total of 367,850 shares. This position is 0.82% of its portfolio. The share price of the company has increased from $35.15 on 31 December 2010 to $37.06 on 31 March 2011.
Penn National Gaming is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. Penn’s EPS forecast for the current year is $1.71 and next year is $1.83. According to consensus estimates, its top line is expected to grow 11.10% in the current year and 10.50% next year. It is trading at a forward P/E of 20.87. Out of 23 analysts covering the company, 19 are positive and have buy ratings, three have hold ratings and one has a sell rating.
JPMorgan Chase & Co
Canyon sold 68,591 shares of JPMorgan Chase last quarter and now holds a total of 1,541,321 shares. This position is 4.28% of its portfolio. The share price of the company has increased from $42.42 on 31 December 2010 to $46.1 on 31 March 2011.
JPMorgan Chase is a financial holding company. JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association, a national bank with United States branches in 23 states, and Chase Bank USA. JPMorgan Chase’s principal non-bank subsidiary is J.P. Morgan Securities LLC, the Firm’s United States investment banking firm. JPMorgan’s EPS forecast for the current year is $4.93 and next year is $5.65. According to consensus estimates, its top line is expected to decline 3.90% in the current year and grow 4.60% in the next year. It is trading at a forward P/E of 7.65. Out of 31 analysts tracking the stock, 28 are positive and have buy ratings and three have hold ratings.
Nvidia Corporation
Canyon sold all (133,200) shares of Nvidia Corporation last quarter. The share price of the company has increased from $15.4 on 31 December 2010 to $18.46 on 31 March 2011.
NVIDIA Corporation is a provider of visual computing technologies and the inventor of the graphics processing unit (GPU). The company’s products are designed to generate graphics on workstations, personal computers, game consoles and mobile devices. Nvidia’s EPS forecast for the current year is $1.05 and next year is $1.25. According to consensus estimates, its top line is expected to grow 16.00% in the current year and 8.90% next year. It is trading at a forward P/E of 14.77. Out of 31 analysts covering the company, 10 are positive and have buy ratings, 20 have hold ratings and one has a sell rating.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: Top 15 Sells of Canyon Capital Advisors