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I discussed Top 10 stocks Goldman Sachs is Buying in my previous article. In addition to top buys, it is also interesting to know the top stocks where Goldman Sachs is booking profits. The following is a list of top stocks where Goldman Sachs is decreasing its positions, according to its latest 13F filing with SEC.

Stock

Symbol

Shares Held - 06/30/2011

Shares Held - 09/30/2011

Change in shares

Staples Inc.

SPLS

41677427

7044801

-34632626

Pepsico Inc.

PEP

22129957

16881815

-5248142

Comcast Corporation

CMCSA

20692794

5596150

-15096644

Southwestern Energy Co.

SWN

9251806

1164042

-8087764

Dollar General Corporation

DG

52474939

46411215

-6063724

Mosaic Co.

MOS

6262115

2102833

-4159282

Occidental Petroleum Corporation

OXY

7405117

4380957

-3024160

Kinetic Concepts Inc.

KCI

3034393

34702

-2999691

General Motors Company

GM

11957341

2165725

-9791616

Newfield Exploration Co.

NFX

6114154

1231174

-4882980

Source: 13F filing

Pepsi’s slowing growth and market shares losses against its key rival Coca Cola makes Pepsi a perfect short target. There are some expectations that company may announce some cost-cutting and restructuring measures early next year, and hence the stock might be show some strength going into 2012. However, I don’t see any likelihood of the stock outperforming.

It is increasingly becoming clear that we are headed into another recession and in times of slowdowns; announcements have little impact unless accompanied by actual execution. When Coca-Cola faced similar problems in the past, it took it around 5 years of disciplined focus on brand building, innovation, bottler re-investment to improve trends. Clearly, it is not going to be an easy ride for Pepsi either.

Comcast Corporation also appears to be a good sell given continued investment spending in NCBU along with macro uncertainty which might adversely affect advertising spend. Although cable business reported strong 3Q results, it is expected to slow next year due to product maturation and intense competition.

Two stocks where I don’t agree with Goldman and believe they are buys instead of sell are Dollar General and Mosaic.

Dollar General is a strong fundamental growth story. The company is expanding square footage at a 7% rate and posting mid-single digit comps on existing store base. The company is generating strong free cash flow and using it to de-lever balance sheet and repurchase shares. Although the stock has gone up 32% YTD, it still looks cheap trading at 15x forward PE.

I am also bullish on Mosaic Co. I believe fertilizer stocks can perform better in this downturn as compared to 2008 recession due to relatively tight supply chain and higher grain prices which are helping farm economics.



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

Source: 10 Stocks Goldman Sachs Is Selling