Analysis Of Noteworthy Institutional 5% Ownership Filings 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, including Massachusetts Financial Services and Sprott Asset Management, indicating that they had amended their ownership in U.S. traded public companies. Also, we have included, when applicable, 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 (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):

Columbia Laboratories (CBRX): CBRX develops women's healthcare and endocrinology products using its proprietary bio-adhesive drug delivery technology. It offers bio-adhesive vaginal gel products that provide solutions for infertility, pregnancy support, and other women's medical indications. On Tuesday, David Knott, CEO of hedge fund company Dorset Management Corp., filed SEC Form SC 13D/A indicating that he held 4.15 million or 4.6% of outstanding shares, after selling 0.6 million shares last week, on January 26, and 27. David Knott, on behalf of Dorset, held 4.25 million shares at the end of Q3, but in later 13D filings, he indicated that he had increased his stake to 6.79 million shares in a filing on November 23, and then reduced it to 4.75 million shares in a filing on January 19. CBRX plunged recently in mid- to late-January from the $2.50-$3 range to as low as 65 cents early last week, in advance of and after the FDA Advisory Committee on Friday, January 20, voted against recommending its progesterone vaginal gel 8% Prochieve in reducing the risk of pre-term birth in women with a single gestation and a short uterine cervical length at the mid-trimester of pregnancy. In an article the following Tuesday, we analyzed the FDA news, and opined that then-current prices (in the 70 cent range) were at an attractive level for aggressive non-risk-averse investors for a very minor portion of their portfolios. Since then, the stock traded as high as 96 cents, and closed Wednesday at 85 cents.

Stryker Corp. (NYSE:SYK): Stryker is a developer of specialty surgical and medical products, including orthopedic implants, surgical instruments, imaging systems and operating room and emergency medical equipment. On Tuesday, Denver-based First Western Trust Bank filed SEC Form SC 13G/A indicating that it held 20.2 million or 5.5% of outstanding shares, a decrease from the 21.4 million shares that it indicated holding in a prior 13G filing on February 22, of last year. SYK last week reported its Q4, in-line on both revenue and earnings; its shares currently trade at 12-13 forward P/E and 2.8 P/B compared with averages of 29.3 and 3.9 for its peers in the medical products group.

Brigus Gold Corp. (BRD): BRD is engaged in the exploration, development and production of gold and other metals in the U.S., Canada, and Mexico. On Tuesday, Toronto-based hedge and mutual fund company Sprott Asset Management LP, with over $10 billion in assets under management, including $911 million in 13-F assets per its latest Q3 filing, filed SEC Form SC 13G/A indicating that it holds 20.5 million or 10.0% of outstanding shares, an increase from the 15.9 million shares it held at the end of Q3; Sprott was the largest institutional holder of BRD even prior to this purchase, with the next largest being Wellington Management (6.8 million shares). BRD shares currently are at their lows, and it trades at a cheap 6-7 forward P/E, and at 1.3 P/B compared with the 1.8 average for the small-cap gold miners.

Open Text Corp. (NASDAQ:OTEX): OTEX is a leader in enterprise content management solutions, helping organizations manage and gain the true value of their business content. On Tuesday, Boston-based Massachusetts Financial Services, with over $80 billion in 13-F assets per the latest Q3 filing, filed SEC Form SC 13G indicating that it holds 3.1 million or 5.4% of outstanding shares, a new position. OTEX just reported its Q4 this morning, beating both revenue and earnings estimates by wide margins; the stock gapped up strongly, over 10%, and currently trades at 11-12 forward P/E and 2.8 P/B compared with averages of 37.7 and 4.1 for the computer software group.

ZBB Energy Corp. (ZBB): ZBB is leader in the design and manufacture of advanced energy storage and intelligent power control platforms that effectively enable integration of renewable and conventional energy resources. On Wednesday, Hunt Valley, MD-based Marathon Capital Management, with $124 million in 13-F assets per its latest Q4 filing, filed SEC Form SC 13G indicating that it holds 4.9 million or 15.1% of outstanding shares. Marathon is the largest institutional holder of ZBB, ahead of Ardsley Advisor Partners (2.8 million shares) and Vanguard Group (0.1 million shares), and it added 1.4 million shares in Q4 to its 3.5 million share prior quarter position.

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