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PRIMECAP Management Top Purchases: Amgen Inc., The Boeing Company, Telefonaktiebolaget LM Ericsson Telephone Company, Electronic Arts Inc., Eli Lilly and Company

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Nov. 22, 2009 | Filed Under: AMGN , BA , ERIC , ERTS , LLY

PRIMECAP Management - PRIMECAP Management Top Purchases: Amgen Inc., The Boeing Company, Telefonaktiebolaget LM Ericsson Telephone Company, Electronic Arts Inc., Eli Lilly And Company

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guruek
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(Gurufocus, November 22, 2009) In the earlier article, we stated that the mega-Fund manager PRIMECAP Management found value in the healthcare sector. As it turns out, many of the positions in the top holdings are relatively new.

This is the list of PRIMECAP Management top purchases for the last quarter:

No. 1: Amgen Inc. (AMGN), Add: 0.32% of the portfolio - Total: 39,278,616 Shares

Amgen Inc. is a biotechnology company that discovers, develops, manufactures and markets human therapeutics-based on advances in cellular and molecular biology. The Company operates in human therapeutics.

Amgen Inc. has a market cap of $56.24 billion; its shares were traded at around $55.38 with a P/E ratio of 11.4 and P/S ratio of 3.8. Amgen Inc. had an annual average earning growth of 19.2% over the past 10 years. GuruFocus rated Amgen Inc. the business predictability rank of 4-star.

No. 2: The Boeing Company (BA), Add: 0.14% of the portfolio - Total: 7,278,370 Shares

The Boeing Company (Boeing) is involved in the design, development, manufacture, sale and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services. The Company operates in five principal segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S) and Boeing Capital Corporation (BCC). BMA, N&SS and GS&S comprise the Company’s Integrated Defense Systems (IDS) business.

The Boeing Company has a market cap of $37.56 billion; its shares were traded at around $51.7 with a P/E ratio of 76 and P/S ratio of 0.6. The dividend yield of The Boeing Company stocks is 3.2%. The Boeing Company had an annual average earning growth of 10.9% over the past 10 years. GuruFocus rated The Boeing Company the business predictability rank of 2.5-star.

No. 3: Telefonaktiebolaget LM Ericsson Telephone Company (ERIC), Add: 0.16% of the portfolio - Total: 46,795,442 Shares

Telefonaktiebolaget LM Ericsson (Ericsson) is a supplier of network equipment and related services to telecom operators. The Company offers a portfolio of telecommunication and data communication systems, multimedia solutions and professional services, covering a range of technologies.

Lm Ericsson Telephone Company has a market cap of $32.04 billion; its shares were traded at around $10.1 with a P/E ratio of 15.8 and P/S ratio of 1.1. The dividend yield of Lm Ericsson Telephone Company stocks is 1.5%.

No. 4: Electronic Arts Inc. (ERTS), Buy: 0.17% of the portfolio - Total: 5,028,100 Shares

Electronic Arts Inc. (EA develops, markets, publishes and distributes video game software and content that can be played by consumers on a variety of platforms, including video game consoles, such as the PLAYSTATION 3, Microsoft Xbox 360 and Nintendo Wii; personal computers (PCs), including the Macintosh; handheld game players, such as the PlayStation Portable (PSP) and Nintendo DS, and wireless devices, such as cellular phones and smart phones, including the Apple iPhone.

Electronic Arts Inc. has a market cap of $5.6 billion; its shares were traded at around $17.3 with and P/S ratio of 1.4.

No. 5: Eli Lilly and Company (LLY), Add: 0.12% of the portfolio - Total: 62,428,802 Shares

Eli Lilly and Company discovers, develops, manufactures and sells products in one business segment, pharmaceutical products. The Company also has an animal health business segment.

Eli Lilly And Company has a market cap of $42.04 billion; its shares were traded at around $36.59 with a P/E ratio of 8 and P/S ratio of 2. The dividend yield of Eli Lilly And Company stocks is 5.4%. Eli Lilly And Company had an annual average earning growth of 4.4% over the past 10 years. GuruFocus rated Eli Lilly And Company the business predictability rank of 4.5-star.

Conclusion

Judged by the top purchases, PRIMECAP Management bought mostly in health care and technology companies.

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