Wilbur Ross, Jr., Chairman & CEO of WL Ross & Co. was on CNBC this morning to discuss why the US Corporations opt to do M&A deals instead of building new plants and hiring more people.
Ross states that US companies have tons of cash on that balance sheet that they have to deploy. They do not want to expand operation and hire more people because of the lack of top line revenue growth opportunities in the US and the presence of regulatory uncertainties (Healthcare Reform, Financial Regulatory Reform, etc.).
In the mean time, Ross seems to admire the approach that China is taking on their economy. He thinks China has good industry policies, nurturing industrial powers in things like renewable enegy.
Not trying to question the wisdom of the renowned investor, I for one have a hard time to reconcile the fact that when the US government is trying to flex its regulatory muscle in economy, Ross calls it “uncertainty”; on the other hand, when Chinese government exercise a good measure of control over its industries, all of sudden it becomes something admirable?
That said, I do not pretend to have a better idea on how to solve the US unemployment problem. So let’s stick to what we do best in GuruFocus, and that is to track the investment activities of Investment Gurus such as Wilbur Ross.
For the second quarter of 2010, Wilbur Ross bought the following stocks the most:
No. 1: JoAnn Stores Inc. (JAS, Financial), Add: 0.74% of the portfolio - Total: 171,740 Shares
Jo-Ann Stores, Inc. is one of the largest national category-dominant retailers serving the retail fabric and craft industry. Joann Stores Inc. has a market cap of $1.11 billion; its shares were traded at around $40.66 with a P/E ratio of 13.1 and P/S ratio of 0.6. Joann Stores Inc. had an annual average earning growth of 1.8% over the past 10 years.
No. 2: Cooper Tire & Rubber Company (CTB, Financial), Add: 0.59% of the portfolio - Total: 389,200 Shares
Cooper Tire & Rubber Company specializes in the manufacture and marketing of automotive products. Cooper Tire & Rubber Company has a market cap of $991.3 million; its shares were traded at around $16.19 with a P/E ratio of 8 and P/S ratio of 0.4. The dividend yield of Cooper Tire & Rubber Company stocks is 2.6%.
No. 3: Lear Corp. (LEA, Financial), Add: 0.58% of the portfolio - Total: 66,700 Shares
Lear Corporation is a global supplier of automotive seating systems, electrical distribution systems and electronics. Lear Corp. has a market cap of $3.44 billion; its shares were traded at around $73.66 with a P/E ratio of 12.5 and P/S ratio of 0.4.
No. 4: Key Energy Services Inc. (KEG, Financial), Buy: 0.57% of the portfolio - Total: 234,000 Shares
Key Energy Services, Inc. is one of the largest providers of onshore oil and gas well services in the United States and Argentina. Key Energy Services Inc. has a market cap of $1 billion; its shares were traded at around $8.01 with and P/S ratio of 0.9.
No. 5: Innophos Holdings Inc. (IPHS, Financial), Buy: 0.49% of the portfolio - Total: 70,629 Shares
Innophos, Inc., is one of the North American manufacturers of specialty phosphates, serving a diverse range of customers across multiple applications, geographies and channels. Innophos Holdings, Inc. has a market cap of $624.6 million; its shares were traded at around $29.17 with a P/E ratio of 13.4 and P/S ratio of 0.9. The dividend yield of Innophos Holdings, Inc. stocks is 2.3%.
You can view Ross’s complete stock portfolio by click here.
In the recent months, GuruFocus has reported on Ross’s following media appearances:
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Wilbur Ross for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
Ross states that US companies have tons of cash on that balance sheet that they have to deploy. They do not want to expand operation and hire more people because of the lack of top line revenue growth opportunities in the US and the presence of regulatory uncertainties (Healthcare Reform, Financial Regulatory Reform, etc.).
In the mean time, Ross seems to admire the approach that China is taking on their economy. He thinks China has good industry policies, nurturing industrial powers in things like renewable enegy.
Not trying to question the wisdom of the renowned investor, I for one have a hard time to reconcile the fact that when the US government is trying to flex its regulatory muscle in economy, Ross calls it “uncertainty”; on the other hand, when Chinese government exercise a good measure of control over its industries, all of sudden it becomes something admirable?
That said, I do not pretend to have a better idea on how to solve the US unemployment problem. So let’s stick to what we do best in GuruFocus, and that is to track the investment activities of Investment Gurus such as Wilbur Ross.
For the second quarter of 2010, Wilbur Ross bought the following stocks the most:
No. 1: JoAnn Stores Inc. (JAS, Financial), Add: 0.74% of the portfolio - Total: 171,740 Shares
Jo-Ann Stores, Inc. is one of the largest national category-dominant retailers serving the retail fabric and craft industry. Joann Stores Inc. has a market cap of $1.11 billion; its shares were traded at around $40.66 with a P/E ratio of 13.1 and P/S ratio of 0.6. Joann Stores Inc. had an annual average earning growth of 1.8% over the past 10 years.
No. 2: Cooper Tire & Rubber Company (CTB, Financial), Add: 0.59% of the portfolio - Total: 389,200 Shares
Cooper Tire & Rubber Company specializes in the manufacture and marketing of automotive products. Cooper Tire & Rubber Company has a market cap of $991.3 million; its shares were traded at around $16.19 with a P/E ratio of 8 and P/S ratio of 0.4. The dividend yield of Cooper Tire & Rubber Company stocks is 2.6%.
No. 3: Lear Corp. (LEA, Financial), Add: 0.58% of the portfolio - Total: 66,700 Shares
Lear Corporation is a global supplier of automotive seating systems, electrical distribution systems and electronics. Lear Corp. has a market cap of $3.44 billion; its shares were traded at around $73.66 with a P/E ratio of 12.5 and P/S ratio of 0.4.
No. 4: Key Energy Services Inc. (KEG, Financial), Buy: 0.57% of the portfolio - Total: 234,000 Shares
Key Energy Services, Inc. is one of the largest providers of onshore oil and gas well services in the United States and Argentina. Key Energy Services Inc. has a market cap of $1 billion; its shares were traded at around $8.01 with and P/S ratio of 0.9.
No. 5: Innophos Holdings Inc. (IPHS, Financial), Buy: 0.49% of the portfolio - Total: 70,629 Shares
Innophos, Inc., is one of the North American manufacturers of specialty phosphates, serving a diverse range of customers across multiple applications, geographies and channels. Innophos Holdings, Inc. has a market cap of $624.6 million; its shares were traded at around $29.17 with a P/E ratio of 13.4 and P/S ratio of 0.9. The dividend yield of Innophos Holdings, Inc. stocks is 2.3%.
You can view Ross’s complete stock portfolio by click here.
In the recent months, GuruFocus has reported on Ross’s following media appearances:
Wilbur Ross on Charlie Rose - Aug, 04, 2010
Wilbur Ross To Invest in Healthcare Sector - Jul, 15, 2010
Wilbur Ross on Sun Bancorp. Transaction and Economy - Jul, 08, 2010
Wilbur Ross Discusses Assured Guaranty, State Budgets: Video - Jun, 29, 2010
Wilbur Ross On European and Australia - Jun, 14, 2010
Wilbur Ross on European Debt Crisis - May, 18, 2010
Mario gabelli and Wibur Ross On Today's Market Plunge - May, 06, 2010
Wilbur Ross on UK Banks, US Regional Banks, and China's Real Estate - Apr, 14, 2010
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Wilbur Ross for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
