Billionaire Steve Cohen’s SAC Has Been Buying Lamar Advertising Co (LAMR)

Page 1 of 2

Lamar Advertising (LAMR)A 13G filed with the SEC has disclosed that billionaire Steve Cohen’s SAC Capital Advisors owns 4.2 million shares of Lamar Advertising Co (NASDAQ:LAMR), giving the fund a 5.3% stake in the $4.1 billion market cap outdoor advertising company with a primary focus on billboard advertising. We track SAC’s quarterly 13F filings alongside those of hundreds of other hedge funds as part of our work developing investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year). According to our database, the fund owned 1.8 million shares at the beginning of April (see Cohen’s stock picks over time). Southeastern Asset Management, a mutual fund managed by billionaire Mason Hawkins, reported a position of 4.4 million shares in its 13F for the first quarter of 2013 (find Southeastern’s favorite stocks).

Last quarter Lamar Advertising Co (NASDAQ:LAMR)’s revenues rose 6% compared to the first quarter of 2012, though operating income showed very little change as SGA expenses picked up considerably. Net losses were a little over $6 million, with Q1 generally being poor for Lamar. Trailing earnings are currently very low compared to the company’s market capitalization, and even with Wall Street analysts expecting a large increase in earnings per share over the next year and a half the forward P/E is 45.

Steven CohenThe buy case for Lamar Advertising Co (NASDAQ:LAMR) for some time, however, has been the possibility of the company converting to a real estate investment trust. Real estate investment trusts receive favorable tax treatment conditional on distributing a large share of their taxable income to shareholders; as such , the conversion process is more tax efficient and generally also commits companies to pay a decent dividend yield (a factor which is in high demand in the current low interest rate environment). As it happens, an 8-K filed on June 6th by Iron Mountain revealed that the IRS may revise its working definition of “real estate” for the REIT approval process, a move which may signal that the agency will get tougher on prospective applicants such as Lamar seeking to take advantage of REITs’ favorable tax status. The stock price was down 4% as of this writing.

Lamar Advertising Co (NASDAQ:LAMR)’s closest peer is Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), which manages billboards, street furniture displays, and transit advertising displays. This company is actually unprofitable on a trailing basis, with the sell-side expecting net losses this year as well. With revenue flat in the first quarter of 2013 versus a year earlier, we would avoid the stock.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!