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 basic materials and services sectors, including retail and construction; previously we discussed Monday's noteworthy 13D/G filings in separate articles focusing on the healthcare and technology sectors.
New Gold Inc. (NGD): NGD is a Canadian mining company engaged in the exploration of gold, silver and copper in Brazil, Australia, Mexico, Canada and Chile. On Monday, Chicago-based BMO Financial Corp., a holding company that is a subsidiary of the Bank of Montreal, and with over $48 billion in U.S. equity assets per its latest 13-F Q3 filing, filed SEC Form SC 13G/A indicating that it holds 18.8 million or 4.1% of outstanding shares, a decrease from the 26.5 million shares it indicated holding in a prior SC 13G filing that we reported on just over two weeks ago. NGD trades at a premium 20-21 forward P/E and 2.6 P/B compared to averages of 12.0 and 3.6 respectively for its peers in the mining miscellaneous group, while earnings are projected to grow strongly from 33c in 2010 to 58c in 2012 at an annual growth rate of 32.6%.
Agrium Inc. (AGU): AGU manufactures nitrogen, potash, and phosphate-based fertilizers and other agricultural products for markets worldwide, and it is also involved in the retail supply of agricultural products and services in North and South America. On Monday, BMO Financial Corp. filed SEC Form SC 13G/A indicating that it holds 6.7 million or 4.3% of outstanding shares, an increase from the 4.8 million shares it held at the end of Q3. AGU just today morning reported a stellar Q4, beating earnings estimates ($2.34 v/s $2.00) and revenue estimates ($3.18 billion v/s $3.04 billion); the stock is up almost 3%, and it trades at 9-10 forward P/E and 2.1 P/B compared to averages of 10.1 and 3.6 for its peers in the fertilizer group.
Wendy's Co. (WEN): WEN franchises and operates a chain of over 10,000 Wendy's and Arby's fast food restaurants in the U.S. and internationally. On Monday, two institutions filed SC 13D/G's amending their ownership in the company. The first was New York-based shareholder activist hedge fund Trian Fund Management, with over $2.7 billion in 13-Fassets per its latest Q3 filing, filed SEC Form SC 13D/A (an activist filing) indicating that it holds 105.2 million or 27.0% of outstanding shares, an increase from the 76.6 million shares it indicated holding at the end of Q3.
The second institution filing 13D/G's on Monday was 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 34.3 million or 8.8% of outstanding shares, an increase from the 30.6 million shares it indicated holding at the end of Q3. WEN has been stuck in a trading range in the past three-plus years, and it currently trades at 20-21 forward P/E and 1.0 P/B, compared to averages of 18.7 and 4.5 for the restaurant group.
Standard Pacific Corp. (SPF): SPF builds single-family attached and detached homes, condominiums and townhomes in seven states across the U.S., and through its subsidiaries, provides mortgage loans to its homebuyers, as well as acts as a title insurance agent performing title examination services for Texas homebuyers. On Monday, New York-based hedge fund company Porter Orlin, with over $1.35 billion in 13-F assets per its latest Q3 filing, filed SEC Form SC 13G/A indicating that it holds 9.45 million or 4.8% of outstanding shares, a decrease from the 10.34 million shares it held at the end of Q3. SPF reported a good Q4 just yesterday, beating analyst revenue and earnings estimates; the stock is trading 15% higher, and at a forward 29-30 P/E compared with the 20.8 average for the homebuilder group.
Home Inns & Hotels (HMIN): HMIN is manager of a chain of economy hotels in China, with approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. On Monday, Oppenheimer Funds, with almost $50 billion in 13-F assets, filed SEC Form SC 13G indicating that it holds 3.74 million or 8.3% of outstanding shares, an increase from the 2.98 million shares it held at the end of Q3. HMIN is undervalued, trading at current 23 P/E on a TTM basis, and at 2.2 P/B, compared with averages of 31.2 and 2.3 for its peers in the hotels and motels 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.
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