Many leading funds filed forms 13-D and 13-G (and form 4) with the SEC on Monday, indicating that they had amended their ownership in U.S. traded public companies. The following are the most notable filings on Monday in the technology sector (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):
LSI Corp. (NASDAQ:LSI) is a designer of complex high-performance ICs and storage systems. Its silicon-to-systems solutions are at the heart of products that create, store, consume and transport digital information. Its ICs are used in hard disk and solid state drives, high-speed communications and storage systems, computer servers and PCs.
On Monday, Short Hills, NJ-based mutual fund powerhouse Franklin Mutual Advisers filed SEC Form SC 13G/A indicating that it does not hold any position in the company, a drop from the 12.5 million shares it held at the end of Q3. LSI has mounted a strong rally since the beginning of the year, and is up over 50% since mid-December. It gapped up about two weeks ago after reporting strong Q4 report, and is currently trading at 11 forward P/E and 3.5 P/B compared to averages of 17.4 and 1.9 for its peers in the electronic components semiconductor group.
Besides LSI, Franklin Mutual Advisers filed 13D/Gs on several other companies on Monday, including Xerox Corp. (NYSE:XRX), in which it indicated holding 85.3 million shares, a decrease from the 103.1 million shares it indicated holding at the end of Q3; and hospital operator Tenet Healthcare Corp. (NYSE:THC), in which it indicated holding 30.58 million shares, a decrease from the 30.70 million shares it indicated holding at the end of Q3.
Level 3 Communications (NYSE:LVLT) is an operator of one of the largest Internet backbones in the world. It is one of the largest providers of wholesale dial-up service to ISPs in North America, and it is the primary provider of Internet connectivity for millions of broadband subscribers, through its DSL and cable partners.
On Monday, Memphis, TN-based mutual fund powerhouse Southeastern Asset Management Inc., that manages the Longleaf Partners family of mutual funds, and with over $31 billion in assets under management, filed SEC Form SC 13G/A indicating that it holds 44.2 million or 20.8% of outstanding shares, an increase from the 30.4 million shares it indicated holding at the end of Q3. LVLT shares are higher today after a surprising Q4 report earlier this morning in which earnings trounced estimates (62c loss v/s $1.10 loss) while revenues slightly missed estimates ($1.58 billion v/s $1.64 billion).
Besides LVLT, Southeastern Asset Management filed 13D/Gs on several other companies on Monday, including oil & gas exploration and production company Chesapeake Energy (NYSE:CHK), in which it indicated holding 87.4 million shares, a decrease from the 88.1 million shares it held at the end of Q3. Second, Liberty Interactive Corp. (LINTA), a holding company engaged in a broad range of electronic retailing, media, communications and entertainment businesses and investments, in which it indicated holding 53.8 million shares, a decrease from the 55.4 million shares it indicated holding at the end of Q3.
Ski resort operator Vail Resorts Inc. (NYSE:MTN) also reported, indicating it is holding 3.35 million shares, a decrease from the 3.44 million shares it held at the end of Q3. Specialty insurance products and programs provider Markel Corp. (NYSE:MKL) indicated holding 0.66 million shares, a decrease from the 0.69 million shares it held at the end of Q3.
Guidance Software Inc. (NASDAQ:GUID): GUID is a provider of digital forensic software used in criminal and civil court proceedings by law enforcement and government agencies worldwide. On Monday, Minneapolis-based Riverbridge Partners, with $2.2 billion in 13-F assets per its latest Q3 filing, filed SEC Form SC 13G/A indicating that it holds 2,648 shares, a decrease from the 1.4 million shares it held at the end of Q3.
GUID is soaring today, up over 25% at the time of this writing, after reporting a strong Q4 in which it beat earnings estimates (16c v/s 9c) and revenue estimates ($29.9 million v/s $28.5 million), and guiding revenue and earnings higher for the upcoming quarter and fiscal year. The stock currently trades at a current 35 P/E on a TTM basis, and at 8.2 P/B compared to averages of 24.2 and 3.1 for its peers in the computer software group.
Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. 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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