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Yacktman Buys Dell, a Company that Wants to Go Private – Yacktman Fund 4th Quarter Update
Posted by: Dianne Tordillo (IP Logged)
Date: January 28, 2013 05:30PM
Donald Yacktman has submitted several fourth quarter updates for the Yacktman Fund. For the three months ending Dec. 31, the fund returned 0.01 percent, beating the S&P 500’s -0.38 percent fourth quarter return.
In the full year of 2012, the Yacktman Fund delivered 11.47 percent, according to the fund’s fourth quarter overview.
Totaling 7 transactions, Yacktman’s fourth quarter update consisted of 1 new buy, 3 stake increases, 2 stake reductions and 1 sale of Yacktman’s entire stake in a company.
Among them, the transaction that made the most impact to his portfolio was his new holding of computer and technology solutions company, Dell Inc. (DELL).
Yacktman’s purchase of Dell fell quite timely with some big news. Just two weeks ago, Dell announced that it would like to buy back all of its publicly traded shares in an attempt to go private, hoping to raise $22 billion. Its motive: to restructure its business model.
Sitting at $13.03 per today’s price after market close, it would need to maintain this rate to achieve its goal or at least a price between $13 and $14.
Yacktman’s new Dell holding for the Yacktman Fund consists of 6.4 million shares. The stock also appears as a new buy for his Yacktman Focused Fund, with a holding of 5.7 million shares.
Dell’s price has slowly picked up in recent weeks, following its mid-November three-year low (of $9). Seeing an extremely slow but steady rise, dipping into the new year, Dell’s price has gained 32 percent since the start of 2013.
With a dividend payout ratio of 1.2 percent, Dell is ranked 7 is Financial Strength and 6 in Profitability and Growth. Its fair value on the GuruFocus DCF Calculator is $15.06.
The rest Yacktman Fund’s fourth quarter stake increases include adding 25.64 percent to Stryker Corp. (STK), adding 21.69 percent to Coca-Cola (KO) and adding 10.53 percent to Avon Products (AVP).
Yacktman reduced 38.46 percent to his H&R Block (HRB) stake and 47.99 percent to his Research in Motion stake.
Finally for the Yacktman Fund, the Guru completely sold it his shares in Liberty Ventures (LVNTA).
*View more details about Yacktman’s fourth quarter updates in Yacktman Fund Stock Picks. Also view the fund’s undervalued stocks, high-yield companies and top growth stocks.
**Yacktman also updated his other fund, the Yacktman Focused Fund, for the fourth quarter. To read about his new purchases for this fund , visit Yacktman Focused Fund Buys Dell, Intel, Janus Capital, PepsiCo, Coca-Cola
Guru Discussed: Yacktman Fund: Current Portfolio, Stock Picks
Stocks Discussed: DELL,