Here's What This Infamous Money-Manager Has Sold

Might you want to sell these stocks, too?

May 29, 2014 at 5:43PM

The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider Point72 Asset Management, formerly known as SAC Capital Advisors. SAC Capital, run by Steven Cohen, was one of the biggest hedge fund companies around -- until allegations of securities fraud and insider trading led to a hefty fine of more than $1 billion. Now the company, which will no longer manage anyone's money other than that of Cohen, his family, and some employees, has a new name. (It's worth noting that Cohen reportedly averaged returns of roughly 30% annually over two decades.)

The company's latest 13F report shows that it reduced or eliminated positions in Forest Oil Corporation (NYSE:FST), Nokia Corporation (NYSE:NOK), and Orexigen Therapeutics (NASDAQ:OREX).

Forest Oil Corporation is a small company with a market cap near $260 million. It hasn't always been so small, though: Its stock is down more than 50% over the past year. Ouch. Almost 100 years old, Forest Oil is a North-America-focused oil and gas company, and it recently announced plans to be acquired by privately held Sabine Oil and Gas. Disappointing drilling results had left Forest Oil deep in debt, so the combination is welcome news.

Finland-based Nokia Corporation, once a telecom equipment powerhouse, is working on turning itself around. Nokia has sold its handset business to Microsoft for about $7 billion, and among other initiatives, it's moving into the connected-car arena, aiming for a piece of the Internet of Things pie. The cash from the big sale will go a long way to paying down debt and may result in dividends and share buybacks, as well. Fool analysts like Nokia's shift from devices toward networking, as it's likely to be more profitable. But some don't see sufficient growth, and wonder about the sustainability of proposed dividends. Nokia's first quarter featured revenue was down 15% year-over-year, but some divisions were doing well -- its HERE mapping business saw 13% growth in external sales, for example.

Orexigen Therapeutics is a biotech company focused on fighting obesity. Bulls hope that its Contrave drug will win FDA approval very soon -- though if it does, it will face competing products already on the market, even if those formulas are not exactly selling like hotcakes so far. Contrave may have an advantage in that it has undergone more extensive testing. Meanwhile, though, Orexigen's first quarter featured wider-than-expected losses. Management has pointed out that the drug might be of particular use for those with both obesity and diabetes.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click here to discover more about this industry-leading stock and join Buffett in his quest for a veritable landslide of profits!

Longtime Fool specialist Selena Maranjian, whom you can follow on Twitter, owns shares of Microsoft. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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