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Just Before David Tepper Was Preaching A 20x P/E On CNBC, He Was Selling These Stocks

Tyler Durden's picture




 

On October 15, two weeks after the end of the third quarter, David Tepper appeared on CNBC for his semi-annual stock pumpfest, most memorable for his suggestion that a 20x P/E multiple on the S&P was perfectly acceptable. Which would suggest Tepper was very bullish on risk. Which would suggest buying more stocks, not selling. Yet selling is precisely what he did between June 30 and September 30 according to his just released 13F. Specifically, after having a total long equity AUM of $6.9 billion at the end of the second quarter, the Appaloosian lowered the dollar value of his AUM by nearly 10%, to $6.3 billion as of September 30. So what did he liqudate? Here are his biggest liquidations:

  • Comcast ($61 million, 1.5MM shares)
  • Microsoft ($48 million, 1.4MM shares)
  • Weatherford ($31 million, 2.3MM shraes)
  • NetApp ($24 million, 640K shares)

Just as notable is what he sold partially, of which his $665 million cut (4.3 million shares) in the SPY ETF is certainly quite dramatic. Other notable sales.

  • Bank of America: sold $51 million, or 4.1MM shares
  • Broadcom: sold $55 million, 1.2MM shares
  • Hertz: sold $40 million, 1.5MM shares
  • Sandisk: sold $39 million, 635K shares
  • Carnival: sold $32 million, 876K shares
  • Google: sold $18 million, 20k shares

And so on. What did he buy to offset all these sales? His new stakes are as follows:

  • Freeport McMoRan: $58 million, 1.75mm shares
  • Ingredeon: $20 million, 297k shares
  • Community Health: $8.7 million, 210k shares
  • Tenet healthcare: $8.7 million, 210k shares

and...

  • a flyer for $6.5 million or 737k shares in JCPenney, in which he is nursing a substantial loss so far.

Tepper's complete latest holdings are shown below, sorted by notional as of Sept 30. New positions in green.

 

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Thu, 11/14/2013 - 18:08 | 4155689 maskone909
maskone909's picture

looks like its shaping up to be a bumpy ride

Thu, 11/14/2013 - 18:41 | 4155764 DoChenRollingBearing
DoChenRollingBearing's picture

I would have been perfectly happy holding quality stocks and even mutual funds & ETFs were it not for the corruption.  I have been a net SELLER for 20 years.  But I am selling down my positions, these sales represent sales of almost all kinds of companies (details on another thread).

I am NOT happy doing this, but I feel I have to defend what belongs to me and my family.  It's hard to no longer believe in America.

:..(

Thu, 11/14/2013 - 18:45 | 4155774 nope-1004
nope-1004's picture

Why don't you do what the ESF and JPig do with gold and silver..... sell ALL your positions in less than 15 minutes.  I hear that's how you best achieve profitable price discovery.

 

Thu, 11/14/2013 - 20:03 | 4156024 bubblemania
bubblemania's picture

I feel the same way.

Thu, 11/14/2013 - 20:10 | 4156045 joego1
joego1's picture

Yeah! America has some explainin to do.

Thu, 11/14/2013 - 19:02 | 4155833 slaughterer
slaughterer's picture

Tepper douche left millions and million on the table by pulling out early.  Time for him to have a tepper tantrum.  

Thu, 11/14/2013 - 19:07 | 4155854 Nothing but the...
Nothing but the truth.'s picture

Tepper doesn't do taper apparently.

Thu, 11/14/2013 - 18:12 | 4155698 Dr. Bonzo
Dr. Bonzo's picture

Ipad double post glitch.

Thu, 11/14/2013 - 18:11 | 4155699 Dr. Bonzo
Dr. Bonzo's picture

Isn't this why we all stopped watching CNBC 15 years ago? The ridiculous pump-n-dump-greater-fool scams, not daily, but nigh hourly.

May the HFT's eat him alive on his way out.

Thu, 11/14/2013 - 18:22 | 4155725 Blues Traveler
Blues Traveler's picture

Yep.....Dan Dorfman 3.0

Thu, 11/14/2013 - 19:48 | 4155968 rehypothecator
rehypothecator's picture

When the matters get important, you have to lie.

Thu, 11/14/2013 - 21:34 | 4156311 AllWorkedUp
AllWorkedUp's picture

+100 Dr. Bonzo

CNBS is good for one thing, pumping and dumping.

Thu, 11/14/2013 - 18:11 | 4155700 onewayticket2
onewayticket2's picture

tepper tantrum in 3-2-1....

Thu, 11/14/2013 - 18:17 | 4155701 Ham-bone
Ham-bone's picture

Funny no one would ask Janet to comment on the below...

  • Mr. Yellen, debt held by the public (nearly entirely by Foreigners and the Fed now) has increased by @ 400% since '00, yet the economic engine to pay for the interest on this debt has "grown" by @ 75%...Funny to imagine the Fed "tapering" or "exiting" (ha)...what % rate would foreign holding of total non-Bill Treasury's need to rise to (60%?, 80%?)  What exactly would happen to the economy if the interest primarily paid to foreigners rose to 5%???  10%???  What exactly would happen to the economy if all this interest paid to foreigners were to be exiting the domestic economy (no multiplier, no velocity)??? Mr. Yellen, How exactly do you still intend on tapering or exiting???

'00

  • GDP $9.5 T
  • Marketable debt = $3.3 T  (blended interest rate of 6.4%)
  • Non-marketable debt = $2.3 T
    • Fed           2% of Notes/Bonds/TIPS ($50 B)
    • Foreigner 30% of Notes/Bonds/TIPS (890 B)

'08

  • GDP $13.7 T
  • Marketable debt = $5.1 T  (blended interest rate of 5%)
  • Non-marketable debt $4.1 T
    • Fed  4% of Notes/Bonds/TIPS ($200 B)
    • Foreigner  42% of Notes/Bonds/TIPS ($2.2 T)

'13

  • GDP $16 T
  • Marketable debt = $12.2 T  (blended interest rate of 2.3%)
  • Non-marketable debt = $4.9 T
    • Fed           22% of Notes/Bonds/TIPS ($2.2 T)
    • Foreigner  50% of Notes/Bonds/TIPS ($5 T)

Mr. Tepper is quite clear the Fed can never "taper" or "exit" without a landslide of Foreigners doing the same...The US is sooooo not Japan who domestically holds their debt...despite the Fed's QE foreigners are owning ever more of US debt and will ensure the Fed drives ever lower yields

Thu, 11/14/2013 - 18:18 | 4155714 maskone909
maskone909's picture

after consuming too much brass monkey last night, i began to wonder....

about how much of the float does usa own in bitcoin.  at what point can the .gov shut it down without riots in the streets.  there has to be some golden ratio out there as is with income/food ect...

its already nearing 5 billion market cap... 

sorry this is way off topic

Thu, 11/14/2013 - 18:23 | 4155726 Ham-bone
Ham-bone's picture

the topic is how far can a global Ponzi scheme go...neigh, a global counterfeit scheme to steal everything...and how do you value things within this environment...seems on topic to me.

Thu, 11/14/2013 - 18:48 | 4155780 prains
prains's picture

the ponzi ends when somebody like saudi arabia, isreal et al blinks.....

Thu, 11/14/2013 - 19:04 | 4155843 Papasmurf
Papasmurf's picture

Bitcoin closing would be a non-event and certainly not cause rioting in the streets. Central bankers absconded with far more than that in the last five years, nevermind the last 100 years.

Thu, 11/14/2013 - 18:24 | 4155727 fonzannoon
fonzannoon's picture

keep hammering that message home hambone. It's interesting about Tepper though. I thought I clearly remember him on CNBC saying the fed should and will taper and it won't be a big deal when they do.

Thu, 11/14/2013 - 18:50 | 4155776 nope-1004
nope-1004's picture

I heard that from him too.  Someone know how to find the vid?

Jim Willie and Jim Sinclair have said for years that there will be no exit, no taper, QEternity.  So if they are called "nuts" but their predictions are turning out correct, the opposite must be true and it's safe to assume that Tepper IS the nut, since he was 100% wrong.

 

Thu, 11/14/2013 - 18:27 | 4155735 venturen
venturen's picture

Tepper same cloth as SteveCohen....take his billions away. Guy has never done a good deed in his miserable life. Just another Goldman Mafia member!

Thu, 11/14/2013 - 18:38 | 4155759 Kirk2NCC1701
Kirk2NCC1701's picture

"It's easier to be forgiven than to get rich".

Plan, Do and Tithe accordingly.

Thu, 11/14/2013 - 18:48 | 4155782 asteroids
asteroids's picture

If I do the math right the SPY is up 6.5% since Oct 1. That's 1.5 months.

Thu, 11/14/2013 - 18:54 | 4155805 jcaz
jcaz's picture

LOL-  nothing like blowing your entire credibility on one trade....  Sweet score on that JCP, Dave-  maybe shoulda looked at their balance sheet for 3 seconds before pushing the button.......

Thu, 11/14/2013 - 19:15 | 4155875 JmanSilver.Gold
JmanSilver.Gold's picture

tepper, another fuckin liberal hypocrite fraud inside trader.

Thu, 11/14/2013 - 19:42 | 4155958 Dr. Engali
Dr. Engali's picture

Tepper should have his balls nailed to the road like this guy:

http://youtu.be/Qda3RllDRl4

Thu, 11/14/2013 - 20:10 | 4156046 thismarketisrigged
thismarketisrigged's picture

i hope david tepper loses his fucking shit.

 

the guy is the definition of a douchebag

Thu, 11/14/2013 - 20:13 | 4156058 putbuyer
putbuyer's picture

Like Jesus said. Focus on yourself. Do for you - be truthful and harm no others. There will always be poor.

Fri, 11/15/2013 - 03:38 | 4156946 yofish
yofish's picture

Maybe your Jesus but the Jesus most have heard about was the one that said nothing about what you imply. 

Thu, 11/14/2013 - 20:30 | 4156097 LongOfTooth
LongOfTooth's picture

Don't ya just hate the internet?  

Signed David T

 

Thu, 11/14/2013 - 20:57 | 4156183 ChaosEquilibrium
ChaosEquilibrium's picture

I hope some our Long Island bretheren take the coming opportunity to show MR. Tepper how much we enjoy his inside trading and frontrunning!!!!

 

THERE WILL BE NO SHELTER HERE!!!!

 

Who is Jersey will give Cramer a NICE FRIENDLY "HELLO"?

 

FUCKING WITH PEOPLES LIVES IS NO GAME.....THERE WILL BE NO QUARTER and NO SEED!!!

Thu, 11/14/2013 - 22:09 | 4156425 vspam
vspam's picture

So what is the timeline 'til the freeride from the FED?  

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