Analysis Of Institutional 5% Ownership Filings On Tuesday And Wednesday

by: GuruFundPicks

Many leading funds filed forms 13-D and 13-G (and form 4) with the SEC on Tuesday and Wednesday this week, on January 3rd and 4th, including Michael Dell's MSD Capital and Relational Investors, 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 after the middle of December. Also, we have included here SEC Form 4 filings by Institutions that are considered corporate insiders by virtue of their holding more than 10% ownership, and in many cases having representation on the Board of Directors. The following are the most notable filings on Tuesday and Wednesday of this week (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):

Lone Pine Resources (LPR): LPR is engaged in oil and gas exploration, development and production in AB, BC and QC in Canada. It is a wholly owned subsidiary of Forest Oil Corp. (NYSE:FST). On Tuesday, Michael Dell's investment firm MSD Capital filed SEC Form SC 13G indicated that it held 4.5 million or 5.2% of outstanding shares, a new position for MSD since it filed its 13-F for Q3. MSD Capital was formed to manage the personal wealth of Michael Dell, the founder of U.S. computer manufacturer, and reportedly manages over $10 billion in assets, including $770 million in U.S. equity assets per their 13-F for Q3. LPR shares have been cut in half since the IPO in May last year, and currently at a discount 8 forward P/E, and at 1.3 P/B, compared to averages of 15.2 and 1.5 respectively for the Canadian oil & gas exploration & production group. The investment by MSD, which typically invests for the long-term in a select focus group of stocks (only 13 at the time of the13-F Q3 filing), mostly with 5% to 10% or higher holdings, is a strong vote of confidence in the long-term outlook for LPR.

Evergreen Energy Inc. (EVEI): EVEI is a developer of K-fuel technology, designed to improve coal quality and comply with air emission standards for coal producers. In addition, it also offers the GreenCert software suite to help power generators address new regulatory pressures regarding environmental emissions. On Tuesday, Toronto, Canada-based multi-strategy hedge fund company Edgehill Partners filed SEC Form SC 13G/A indicating that they held 1.0 million or 3.5% of outstanding shares, a decrease from the 1.5 million or 5.6% of outstanding shares that they held at the time of their last SEC filing in March of last year. EVEI, formerly trading under the symbol EEE, and now trading on the bulletin board has been in a death spiral, falling from $5 in February 2011 to under 7c at the close yesterday, and going back further it traded as high as almost $20 in early 2009 and above $160 in 2006. It has recently been engaged in the process of exploring potential transactions, including a sale, but none of those efforts have yielded anything to-date leaving open the possibility that the company may be unable to continue its operations going forward.

Intuit Inc. (NASDAQ:INTU): INTU provides business and financial management software and services for businesses, accounting professionals and consumers in the U.S., Canada, India, Singapore and the U.K. On Tuesday, San Diego-based shareholder activist value-oriented hedge fund manager Relational Investors, with $4.6 billion in equity assets under management per their latest 13-F Q3 filing, filed SEC Form 4 indicating they it sold 0.4 million shares for $19.7 million, ending with 1.9 million or 0.6% of the outstanding shares. Relational held 5.6 million shares at the time of its 13-F Q3 filing, a decrease from the 11.1 million it shares it held at the end of Q2, and just in the last two weeks (as we reported earlier) it has unloaded an additional 3.4 million shares, ending with 1.9 million shares at the time of its Tuesday Form 4 filing. INTU trades at 16 forward P/E and 6.7 P/B compared to the averages of 34.1 and 3.8 for its peers in the computer software group, while earnings are projected to increase at a strong 15.0% growth rate from $2.51 in 2011 to $3.32 in 2013.

Clean Energy Fuels Corp. (NASDAQ:CLNE): CLNE provides natural gas as an alternative fuel to vehicle fleets in the U.S. and Canada, including customers in the refuse, transit, shuttle, taxi, intrastate and interstate trucking, airport and municipal fleet markets. On Wednesday, Texas billionaire, famed energy investor and hedge fund manager Boone Pickens filed SEC Form SC 13D/A indicating that he now holds 25.2 million or 29.4% of outstanding shares in the company he founded, a decrease from the 31.8 million or 37.1% that he reported in a prior SEC 13D/A filing in September of last year. While the number of shares in his holdings decreased, there was no selling as he transferred his right to purchase an aggregate of 13.5 million shares to a warrant to five third party purchasers in exchange for the right to purchase from the purchasers an aggregate of 6.75 million shares of common stock at $22 per share, with 80% of these new options expiring on December 28th, 2011, and the balance expiring on December 15th, 2013. Also, in addition he exercised options to acquire 1.5 million shares.

Alexza Pharmaceuticals (NASDAQ:ALXA): ALXA is a development stage biotech company, focused on the research, development and commercialization of a novel proprietary drug delivery system for the acute treatment of central nervous system conditions. On Wednesday, Del Mar, CA-based small-cap biotech focused Boxer Capital filed SEC Form SC 13G/A indicating that they now hold 3.4 million or 4.7% of the outstanding shares, less than the 4.2 million or 5.8% that they indicated holding at the time of their last SEC 13G filing for ALXA in May of last year. ALXA shares have been weak recently and currently trading within striking distance of its all-time lows. The company announced on December 16th 60-day layoff notices to all of its employees and indicated that it was exploring strategic options, including a possible sale or disposition of one or more corporate assets, a strategic business combination, partnership or other transactions.

Credit: Fundamental data in this article were based on SEC filings, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and The information and data is believed to be accurate, but no guarantees or representations are made.

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

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