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Favorite S&P Stocks of Gurus in the Second Quarter
Posted by: Holly LaFon (IP Logged)
Date: September 11, 2012 09:32PM
The S&P 500 Grid is a GuruFocus Premium Member feature that lists all the companies on the S&P 500 and allows users to categorize by which are owned, bought and sold by Gurus. According to the screener, the S&P 500 stocks the most Gurus bought during the second quarter are: Apple (AAPL), Phillips 66 (PSX), Oracle (ORCL), Google (GOOG) and Newmont Mining (NEM).
In the second quarter, eleven Gurus added to their holdings of Apple and two initiated two positions in the stock. Of these, Frank Sands has the most conviction on the stock: He owns 3,544,393 shares, which is 9.4% of his portfolio. Apple is also a 16.4% weighting in Julian Robertson’s portfolio.
Apple Computer Inc. designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer and business customers.
Apple Inc. has a market cap of $622.04 billion; its shares were traded at around $659.59 with a P/E ratio of 15.6 and P/S ratio of 5.8. The dividend yield of Apple Inc. stocks is 0.4%. Apple Inc. had an annual average earnings growth of 63.5% over the past five years.
Daniel Loeb, David Einhorn and Baron Funds each commented on their Apple purchases in their respective first-quarter letters. Michael Lippert of Baron Funds said:
Phillips 66 (PSX)
Fifteen Gurus bought Phillips 66 in the second quarter. Most of them likely received the stock through the spin-off of the company from ConocoPhillips in the second quarter. Owners of ConocoPhillips (COP) received one share of Phillips 66 common stock for every two shares of ConocoPhillips common stock they held. After the separation, COP retained no ownership in Phillips 66 and became an independent exploration & production company.
Phillips 66 is a downstream energy company. It operates in three segments: Refining & Marketing, Midstream and Chemicals. Phillips 66 has a market cap of $26.26 billion; its shares were traded at around $45.66 with a P/E ratio of 5.9 and P/S ratio of 0.1. The dividend yield of Phillips 66 stocks is 1.9%.
Thirteen Gurus added to their holdings of Oracle, and two initiated new positions in the stock in the second quarter. Of these, Jeremy Grantham had the most shares, with 52,901,908, which is 4.8% of his portfolio, and Seth Klarman has made the stock 12.2% of his portfolio, equating to 15,800,000 shares.
Oracle Corporation is one of the world's suppliers of software for information management. Oracle Corporation has a market cap of $154.53 billion; its shares were traded at around $32.31 with a P/E ratio of 13.5 and P/S ratio of 4.2. The dividend yield of Oracle Corporation stocks is 0.8%. Oracle Corporation had an annual average earnings growth of 18.1% over the past 10 years. GuruFocus rated Oracle Corporation the business predictability rank of 5-star.
In the second quarter, Oracle reported record software license sales, total software revenue, total revenue and earnings per share. It also had record-high operating margins of 46% and operating cash flow of $13.7 billion. A key element of enlarging its software business going forward is continued development of the Oracle Cloud, along with engineered systems, which have almost reached revenue parity.
Seven Gurus increased their positions in Google, and four established new positions in the company in the second quarter. Of these, Chris Davis has the largest holding, with 2,816,233 shares, a 3.8% weighting in his portfolio. Robert Karr has the largest weighting at 28.3% of his portfolio, or 250,676 shares.
Google search services company. Google Inc. has a market cap of $224.05 billion; its shares were traded at around $692.25 with a P/E ratio of 20.1 and P/S ratio of 5.9. Google Inc. had an annual average earnings growth of 51.9% over the past 10 years. GuruFocus rated Google Inc. the business predictability rank of 2.5-star.
Baron Funds' Ashim Mehra commented on Google in the firm’s first quarter letter:
Newmont Mining (NEM)
Three Gurus added to their holdings of Newmont Mining, and two initiated new positions in the company in the second quarter. Of these Primecap Management has the largest position at 1,604,700 shares or 0.13% of its total assets managed. John Hussman has the largest weighting, at 1.4% of his portfolio, or 1,571,200 shares.
Newmont Mining Corp. is engaged in the production of gold, the exploration for gold and the acquisition and development of gold properties worldwide. It is the world’s second-largest gold producer.
Newmont Mining Corp. has a market cap of $24.87 billion; its shares were traded at around $52.005 with a P/E ratio of 12.1 and P/S ratio of 2.4. The dividend yield of Newmont Mining Corp. stocks is 2.8%. Newmont Mining Corp. had an annual average earnings growth of 12.7% over the past 10 years. GuruFocus rated Newmont Mining Corp. the business predictability rank of 4-star.
Newmont Mining’s stock has slipped 13%. In its second quarter, it faced short-term lower production due to annual mill maintenance in Nevada and copper production from Batu Hijau in Indonesia as it continued other planned waste removal procedures there.
On Tuesday, Newmont CEO Richard O’Brien said at the Denver Gold Forum he believed gold could hit $2,000 per ounce, according to Reuters. The price has currently soared to six-month highs over $1,700 per ounce. Higher gold prices benefit Newmont shareholders, as its dividend is tied to the price of gold. Newmont has the highest dividend yield in the industry.
Guru Discussed: Chris Davis: Current Portfolio, Stock Picks
Frank Sands: Current Portfolio, Stock Picks
Stocks Discussed: AAPL, PSX, ORCL, GOOG, NEM,