Loeb further pares Yahoo stake, discloses size of Nokia position


Three months after announcing a deal to sell back 40M shares to Yahoo (YHOO) and thereby bring its total stake in the company down to 20M, Dan Loeb's Third Point LLC discloses it owned 16M Yahoo shares at the end of Q3. That translates into a 1.6% stake in the company whose shares have soared over the last 12 months thanks to Alibaba IPO hopes. (13F)

Third Point's Nokia (NOK) stake only amounted to 2M shares (current value of $15.8M) at quarter's end. Nokia rallied on Oct. 22 after Loeb disclosed he had taken a position, and provided his reasons.

The firm's position in Tibco (TIBX) was pared to 4.425M shares (2.7% stake) from a prior 5M. There's ongoing speculation Loeb will make Tibco an activist target.

A new 2.6M-share position was taken in Activision (ATVI), which just finished a massive leveraged recap deal with Vivendi.

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Comments (18)
  • DWD Investing
    , contributor
    Comments (13374) | Send Message
     
    Woo 2M shares. Actually, that's a good thing probably.
    14 Nov 2013, 05:21 PM Reply Like
  • toraji
    , contributor
    Comments (811) | Send Message
     
    to be honest I did not even register he bought shares and I agree with you. I guess he missed the boat ;-)
    14 Nov 2013, 07:33 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13374) | Send Message
     
    Well, he's a hedge fund manager. Buy 2M shares, announce he has a 'position' SP rises, take his profits on options.
    15 Nov 2013, 01:05 PM Reply Like
  • ChrisForte
    , contributor
    Comments (216) | Send Message
     
    "There's ongoing speculation Loeb will make Tibco an activist target." Is that good or bad for the share price of TIBX in the near term? Any insights are appreciated.
    14 Nov 2013, 05:39 PM Reply Like
  • Eric Jhonsa
    , contributor
    Comments (1276) | Send Message
     
    If Loeb did make an activist effort, it would probably be a positive for Tibco shares, particularly given the effect he has had with Yahoo and other companies.

     

    A lot of the speculation revolves around the idea Loeb would call on Tibco to spin off its high-growth Business Optimization unit (includes the Spotfire analytics software business) from its slower-growing middleware ops.
    15 Nov 2013, 08:26 AM Reply Like
  • DWD Investing
    , contributor
    Comments (13374) | Send Message
     
    Loeb actually has a good record, from what I can find, in either turning companies around or raising share price or both. Search for Yahoo Loeb.
    15 Nov 2013, 01:07 PM Reply Like
  • ChrisForte
    , contributor
    Comments (216) | Send Message
     
    Eric, thanks for the clear response regarding Loeb's possible role. At this point it's pretty clear that his presence, whether activist or not, is a positive.
    16 Nov 2013, 12:56 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13374) | Send Message
     
    CF

     

    His position is tiny, however.
    17 Nov 2013, 04:14 PM Reply Like
  • ewmpsi
    , contributor
    Comments (1697) | Send Message
     
    When these guys take on a new position, they must factor in "size" as it is relative to their book. If Mr. Loeb is running a book value of a certain number ($BV) and he wants Nokia to represent a certain % of the book, that % is based on what he values the company at, not what he purchases the stock at. The stock must then grow into being “fully valued” or fail to reach the targets, execute plan B.

     

    Those 2M shares worth $15.8mil could turn into 2M shares worth $50mil if it reaches his price target (which he has not disclosed) whatever his price target is. Alternatively, he would not buy $50mil worth of Nokia and have it grow 300% and then represent a larger portion of his book than he is willing to run.

     

    So, we don't know what he values the stock at therefore worrying about the size of his position (small or large) is not worth the effort. If I was to Monday-morning quarterback it, I’d say his small position represents his time horizon, he probably is not leaving the stock anytime soon.
    14 Nov 2013, 09:32 PM Reply Like
  • JoseV
    , contributor
    Comments (401) | Send Message
     
    Agree with you, not worth spending too the time fretting about Loeb yet and also agree that his target must be quite high whatever it is
    14 Nov 2013, 11:00 PM Reply Like
  • toraji
    , contributor
    Comments (811) | Send Message
     
    Thank you ewm,

     

    That comment is very clear and helpful
    15 Nov 2013, 09:15 AM Reply Like
  • DWD Investing
    , contributor
    Comments (13374) | Send Message
     
    ew

     

    I agree. He was also long Yahoo 2 years.
    15 Nov 2013, 01:08 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2146) | Send Message
     
    "Nokia's biggest shareholders are now Dodge & Cox, FMR LLC, and Finnish pension funds Varma and Ilmarinen."

     

    http://bit.ly/YuA7bE

     

    Goldman Sachs sold 40M shares, and is now down to 25M shares. Citigroup is a new major entry, from 1M to 23M shares.
    14 Nov 2013, 11:22 PM Reply Like
  • ewmpsi
    , contributor
    Comments (1697) | Send Message
     
    Seppo, you are the man! :-)
    14 Nov 2013, 11:40 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2146) | Send Message
     
    Thanks :)
    14 Nov 2013, 11:45 PM Reply Like
  • toraji
    , contributor
    Comments (811) | Send Message
     
    Thanks Sep :)
    15 Nov 2013, 10:02 AM Reply Like
  • DWD Investing
    , contributor
    Comments (13374) | Send Message
     
    Seppo,

     

    You are the man x2.
    15 Nov 2013, 01:09 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13374) | Send Message
     
    Oh and BTW, you never gave me a PM response on my thinking behind the ALU wireless possibility???
    15 Nov 2013, 01:09 PM Reply Like
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