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Kahn Brothers Cuts Merck & Co., Bristol-Myers

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GuruFocus.com
·5 min read
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- By Tiziano Frateschi

Investment firm Kahn Brothers (Trades, Portfolio) sold shares of the following stocks during the third quarter of fiscal 2020, which ended on Sept. 30.


Merck & Co.

The firm reduced its stake in Merck & Co. Inc. (MRK) by 13.21%. The trade had an impact of -1.60% on the portfolio.

The pharmaceutical products provider has a market cap of $203 billion and an enterprise value of $223 billion.

Kahn Brothers Cuts Merck & Co., Bristol-Myers
Kahn Brothers Cuts Merck & Co., Bristol-Myers

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 42.9% and return on assets of 13.48% are outperforming 91% of companies in the drug manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.36 is below the industry median of 0.87.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.36% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) by 0.35% and Vanguard Health Care Fund (Trades, Portfolio) with 0.23%.

Bristol-Myers

The Bristol-Myers Squibb Company (BMY) position was trimmed by 7.86%, impacting the portfolio by -0.79%.

The company, which provides drugs for various indications such as cardiovascular, oncology and immune disorders, has a market cap of $144 billion and an enterprise value of $168 billion.

Kahn Brothers Cuts Merck & Co., Bristol-Myers
Kahn Brothers Cuts Merck & Co., Bristol-Myers

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of -0.1% and return on assets of -0.04% are underperforming 54% of companies in the drug manufacturers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.47 is above the industry median of 0.87.

The largest guru shareholder of the company is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 1.93% of outstanding shares, followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.51% and Dodge & Cox with 1.27%.

GlaxoSmithKline

The firm cut its position in GlaxoSmithKline PLC (GSK) by 7.33%. The portfolio was impacted by -0.77%.

The company, which operates in the pharmaceutical industry, has a market cap of $92.42 billion and an enterprise value of $132.19 billion.

Kahn Brothers Cuts Merck & Co., Bristol-Myers
Kahn Brothers Cuts Merck & Co., Bristol-Myers

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 49.66% and return on assets of 7.72% are outperforming 78% of companies in the drug manufacturers industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.16 is below the industry median of 0.87.

The largest guru shareholder is Dodge & Cox with 1.66% of outstanding shares, followed by Simons' firm with 0.82% and HOTCHKIS & WILEY with 0.29%.

Citigroup

The firm reduced its Citigroup Inc. (C) holding by 8.84%, impacting the portfolio by -0.71%.

The global financial services company has a market cap of $88.92 billion and an enterprise value of $194.62 billion.

Kahn Brothers Cuts Merck & Co., Bristol-Myers
Kahn Brothers Cuts Merck & Co., Bristol-Myers

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 5.6% and return on assets of -0.57% are underperforming 66% of companies in the banks industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 1.04 is below the industry median of 1.45.

The largest guru shareholder of the company is ValueAct Holdings LP (Trades, Portfolio) with 1.30% of outstanding shares, followed by HOTCHKIS & WILEY with 0.56% and Diamond Hill Capital (Trades, Portfolio) with 0.45%.

Seaboard

The investment firm trimmed its Seaboard Corp. (SEB) position by 10.25%. The trade had an impact of -0.63% on the portfolio.

The company has a market cap of $3.86 billion and an enterprise value of $3.99 billion.

Kahn Brothers Cuts Merck & Co., Bristol-Myers
Kahn Brothers Cuts Merck & Co., Bristol-Myers

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity of 5.58% and return on assets of 3.19% are outperforming 64% of companies in the conglomerates industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.92 is above the industry median of 0.42.

The largest guru shareholder of the company is Kahn Brothers (Trades, Portfolio) with 0.96% of outstanding shares, followed by Simons' firm with 0.69% and Diamond Hill Capital (Trades, Portfolio) with 0.54%.

New York Community Bancorp

The investment firm reduced its New York Community Bancorp Inc. (NYCB) position by 6.57%. The trade had an impact of -0.58% on the portfolio.

The U.S.-based multi-bank holding company has a market cap of $3.62 billion and an enterprise value of $17.21 billion.

Kahn Brothers Cuts Merck & Co., Bristol-Myers
Kahn Brothers Cuts Merck & Co., Bristol-Myers

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of 5.77% and return on assets of 0.78% are underperforming 65% of companies in the banks industry. Its financial strength is rated 2 out of 10. The cash-debt ratio of 0.09 is below the industry median of 1.45.

The largest guru shareholder of the company is Barrow, Hanley, Mewhinney & Strauss with 11.47% of outstanding shares, followed by Kahn Brothers (Trades, Portfolio) with 1.04% and Simons' firm with 0.28%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.