Leading funds such as T Rowe Price, Federated Investors, Van Eck Associates Corp. and RS Investment Management filed forms 13-D and 13-G with the SEC on Thursday and Friday, December 8th and 9th, indicating that they had amended their ownership in U.S. traded public companies. The forms are required to be filed within ten days, so the institutions traded these shares sometime between the last week of November and Friday. The following are the most notable filings from Thursday and Friday (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):
Alkermes Plc (ALKS): ALKS, an integrated biotech company, develops injectable and oral products for the treatment of central nervous system (CNS) disorders, addiction, diabetes and autoimmune disorders. On Thursday, Pittsburg, PA-based investment management company Federated Investors, with $352 billion in assets under management, filed SEC Form SC 13G/A indicating that they hold 6.6 million or 5.1% of the outstanding shares of ALKS, a new position for them since their 13-F Q3 filing.
Besides Federated, T Rowe Price and Vanguard Group are the other major institutional holders of ALKS, with 4.6% and 3.6% of the outstanding shares respectively. ALKS revenues are on a strong growth trajectory, up over 40% year-over-year for the last two quarter, based on rising sales of Risperdal Consta for schizophrenia and bipolar disorder, and they are projected to double in 2011 and then rise over 40% in 2012. However, it is expecting to keep posting losses at least until 2012, and it trades at 6-7 times annual revenue on a TTM basis compared to the average of 235.7 for the biotech group.
Inovio Pharmaceuticals (INO): INO is engaged in the development and delivery of DNA vaccines with a focus on cancers and infectious diseases, using its SynCon and electroporation DNA delivery technologies. On Friday, Marxe Austin W. & Greenhouse, the largest institutional holder of INO with 10.6% of outstanding shares filed SEC Form 4 indicating that they sold 803,000 shares for $0.3 million, and now hold 11.1 million shares of INO. This is in addition to the 295,200 shares that they sold on Wednesday and the 1.66 million shares that they sold on Monday, so that Marxe Austin sold a total of 2.76 million shares last week. Also, in October, following the end of Q3, Marxe Austin sold another 0.26 million shares, thus selling a total of 3.02 million shares from the 14.1 million shares that they held at the end of Q3. INO shares currently trade at their lows, down about 65% for the year.
Biosante Pharmaceuticals (BPAX): BPAX develops products for female sexual health and oncology. Its lead products include Libigel for the treatment of female sexual dysfunction, and Elestrin for the treatment of moderate-to-sever vasomotor symptoms associated with menopause. On Friday, Kopp Investment Advisors, the largest holder of BPAX at the end of Q3 with 5.4 million shares, filed SEC Form 13D/A indicating it they had reduced its position in BPAX to 4.4 million shares.
Atmel Corp. (ATML): ATML manufactures a wide range of highly integrated semiconductor integrated circuit products, including microcontrollers, application specific ICs, non-volatile memory, and RF components. On Friday, T Rowe Price filed SEC Form 13G indicating that it had increased its ownership of ATML to 60.1 million or 12.9% of the outstanding shares, well above the 24.9 million shares that it held at the end of Q3. ATML shares have been weak recently after the company released lackluster Q3 results on November 1st, and a slew of analysts including Rodman & Renshaw, Collins Stewart and Needham, among others, lowered the price targets on its shares. ATML currently trades at 13-14 forward P/E compared to the average 20.6 for its peers in the electronic components semiconductor group.
DDR Corp. (DDR): DDR is a REIT that acquires, develops, leases and manages shopping centers, mini-malls, and lifestyle centers across the U.S. On Friday, New York-based asset manager Cohen & Steers, with $38.6 billion in assets under management, filed Form SC 13G/A indicating that it had reduced its ownership of DDR to 18.1 million or 6.5% of outstanding shares, well below the 29.2 million or 10.5% of outstanding shares that it reported owning at the end of Q3. DDR trades at a 12.2 ratio of price to fund from operations (P/FFO), a financial measure generally used by REITs in place of P/E to define their operating performance, versus the 9.1 average for its peers among mortgage REITs.
Cano Petroleum (CFW): CFW is engaged in the exploration and production of oil and natural gas in TX, OK and NM. Their focus is on domestic, mature oilfields that eliminate exploration risks and uncertainties associated with international operations. On Friday, Dallas, TX-based hedge fund manager Carlson Capital, headed by Clint Carlson and with $6 billion in equity assets under management, filed SEC Form SC 13D/A indicating that they had reduced their holdings by another 1.8 million shares to 1.1 million or 2.5% of outstanding shares.
This is in addition to the 0.8 million shares sold that they reported just on Wednesday, so that together during the week Carlson Capital reported selling a total of 2.6 million shares from the 3.7 million shares that they held at the time of their 13-F Q3 filing. Carlson is a long-term and by far the largest holder of CFW, having initiated the position in 2008 when CFW traded up to almost $10, and owned as much as 5.6 million shares in 2008/09. CFW shares have been in a tail-spin after hitting a high of 85c earlier this year, as it has posted poor operating results, missing analyst earnings estimates and posting higher losses in recent quarters. Furthermore, it has extremely high short-term debt of $72 million relative to its current market-cap in the $45 million range, and was recently warned on December 1st that it faces a risk of being delisted from the NYSE AMEX.
China Medical Technologies Inc. (CMED): CMED is a Chinese developer of medical devices, and immunodiagnostic and molecular diagnostic products. On Thursday, Grand Cayman-based China-focused hedge fund Keywise Capital Management, with $125 million in equity assets invested in the U.S. markets, filed SEC Form 13G/A indicating that they had sold out of their 3.6 million share position in CMED that they held at the time of their 13-F Q3 filing. CMED shares have been in a death spiral since mid-2008, falling from a high of over $57 to sub-$3 range, as it deals with allegations such as the one by Glaucus Research that alleges that the CEO orchestrated an acquisition to embezzle roughly $20-$23 million from the company. Although shares trade at a cheap less than 2 forward P/E, there is currently a dearth of buyers given the allegations surrounding the CEO.
Integrated Device Technology (IDTI): IDTI manufactures a range of integrated circuits for communications, computing and consumer markets worldwide. On Thursday, San Francisco-based mutual fund manager RS Investment Management, with $11 billion in asset under management, filed SEC Form SC 13G indicating that they added 1.4 million shares to the 13.0 million shares that they held at the time of their 13-F Q3 filing. As a result, they now hold 10.2% of the outstanding shares of IDTI. RS Investment Management has been aggressively adding to their IDTI position in recent quarters, as they held 10.3 million shares at the end Q2, 7.6 million shares at the end of Q1, and only 1.4 million shares at the end of 2010. IDTI is undervalued, and it trades at a discount 15-16 forward P/E and 1.3 P/B compared to averages of 20.6 and 2.1 respectively for its peers in the electronic components semiconductor group.
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