Wallace Weitz Buys DirectTV and Sapient, Sells Lockheed Martin – ValueWalk Premium
Wally Weitz

Wallace Weitz Buys DirectTV and Sapient, Sells Lockheed Martin

In a Nov. 9 SEC filing, Wallace Weitz's Weitz Funds filed a 13F and the value guru made some changes in investments.

Wallace Weitz Buys DirectTV and Sapient, Sells Lockheed Martin

We like to keep an eye on Weitz and his investments. His Omaha-based firm uses common-sense strategy according to the firm's website: own a group of strong businesses with deeply discounted stock prices.

In business since 1983, the firm has grown, while its philosophy has not changed.

For the recent 13F filing, Weitz Funds has $2,152,841 in assets. Year-to-date, its 11 funds have positive returns and it recently announced its December 2012 estimated distributions.

After reviewing the filing, here's a peek at the firm's holdings and recent changes.


Weitz made a DirectTV (NASDAQ:DTV) purchase of 609,400 shares. Pressure has been rising on its rival Dish Network Corp. (NASDAQ:DISH) to combine with the company after they failed to do so 10 years ago. Discussions haven't taken place, but both companies have faced challenges to increase in subscribers.

Year-to-date, DirectTV (NASDAQ:DTV) is up 13.53%.

Additional purchases included Liberty Interactive Corp (NASDAQ:LINTA) and 429,500 shares of Sapient Corporation (NASDAQ:SAPE). Last week Sapient reported its third quarter earnings report. Its revenue and earnings exceeded analysts' estimates.

Year-to-date, Sapient is down 11.27%.


This quarter, 1,304,460 shares of Hewlett-Packard Company (NYSE:HPQ) have been added and current holdings are now 4,379,00 shares. On Monday, the stock hit a 52-week low of $13.48.

Year-to-date, the stock is off 47.79%.

Recent news included Hewlett's announcement of new offerings for its Integrity servers with Intel Corporation (NASDAQ:INTC)'s new Itanium 9500 processor.

Other additions include 255,700 shares of Apache Corporation (NYSE:APA); total holdings are now 506,700 shares.

On Nov. 1, the company announced that it is still on target to deliver its fiscal 2012 production growth guidance.

Year-to-date, Apache is down 13.3%. 

The firm added 1,824,900 shares of Dell Inc. (NASDAQ:DELL) to bring holdings to 5,684,252 shares. On Monday, Forbes included Dell as the #121 broker analyst pick by The Online Investor for strong stock buyback activity. A stock is a candidate if it has been repurchased at least 5% of its outstanding shares over the trailing twelve month period, reported Forbes.

Year-to-date, Dell is down 36.67%.


The firm reduced its Comcast Corporation (NASDAQ:CMCSA) position by 1,021,500 shares and it now sits at 410,640 shares.

On Nov. 5, the company went in front of the Supreme Court to appeal a Third Circuit decision that said sufficient grounds had been shown  to make  a “class” in the class action suit by subscribers against the company.

Year-to-date, the stock is up 52.48%.

Eagle Materials, Inc. (NYSE:EXP) had been reduced by 727,350 shares and now has a 72,000 share position. On Friday, Goldman Sachs Group, Inc. (NYSE:GS) gave it a “Buy” rating, with a $65 price target.

Year-to-date, the stock is up 106.51%.

Google Inc (NASDAQ:GOOG) had been reduced by 37,107 shares, and the current position is 91,189 shares. On Monday, the company confirmed that sales of its long-awaited Nexus 4 and Nexus 10 gadgets will begin on Tuesday.

Year-to-date, the stock is up 3.45%.


The firm sold 180,000 shares of Lockheed Martin Corporation (NYSE:LMT). On Monday, Christoper Kubasik, the company's vice chairman, president, and chief operating officer resigned after an ethics investigation confirmed that he had a “close personal relationship,” with a subordinate employee; this violates the company's Code of Ethics and Business Conduct.

Year-to-date, the stock is up 10.74%.

The firm also sold 200,000 shares of Tree.com Inc (NASDAQ:TREE). On Nov. 5, the company increased its low end of its prior FY 2012 EBITDA Guidance, while issuing its FY 2013 guidance in line to analysts' estimates.

Year-to-date, the stock is 184.26%.


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