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Latest Picks from Francis Chou: USG, NOK; Sells GPS

August 16, 2012 | About:
GuruFocus

GuruFocus

370 followers
Francis Chou, like his friend Prem Watsa, loves to buy cheap stocks, especially if everyone else hates them. Market is giving him a lot of opportunities of doing so, as we can see from his latest portfolio. We have written extensively about Francis Chou. You can read it here: Francis Chou – The Investment Guru That You Never Heard Of. Francis Chou's experience is an amazing success story of value investing. He came to Canada in 1976 at age 20 with $200 in his pocket. Without a college degree, he could only work on blue collar jobs. Finally he landed a job at Bell Canada as a telephone repairman. Somehow he was introduced to the books of Benjamin Graham. As written by Warren Buffett in his famous article, The Superinvestors of Graham-and--Doddsville, "It is extraordinary to me that the idea of buying dollar bills for 40 cents takes immediately to people or it doesn't take at all." The idea apparently took Francis Chou immediately.”

Francis Chou buys Nokia Corporation (adr), Usg Corporation, sells The Gap Inc., Qiao Xing Mobile Communication Co., Ltd. during the 3-months ended 06/30/2012, according to the most recent filings of his investment company, Chou Associates Management. As of 06/30/2012, Chou Associates Management owns 30 stocks with a total value of $328 million. These are the details of the buys and sells.

  • New Purchases: USG,
  • Added Positions: NOK,
  • Reduced Positions: GPS,
  • Sold Out: QXMCF,
For the details of Francis Chou's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Francis+Chou

This is the sector weightings of his portfolio:

Financials 34.8%
Consumer Services 22.2%
Health Care 17.8%
Not Assigned 10.8%
Telecom 10.2%
Technology 3.7%
Industrials 0.5%
Oil & Gas 0.1%


These are the top 5 holdings of Francis Chou

  1. Sears Holdings Corporation (SHLD) - 683,700 shares, 12.4% of the total portfolio.
  2. Watson Pharmaceuticals, Inc. (WPI) - 535,400 shares, 12.1% of the total portfolio.
  3. Berkshire Hathaway Inc. (BRK.A) - 300 shares, 11.4% of the total portfolio.
  4. Resolute Forest Products Inc (RFP) - 3,062,268 shares, 10.8% of the total portfolio. New Position
  5. Sprint Nextel Corporation (S) - 6,123,200 shares, 6.1% of the total portfolio.


New Purchase: USG Corporation (USG)

Francis Chou initiated holdings in Usg Corporation. His purchase prices were between $13.78 and $18.99, with an estimated average price of $16.36. The impact to his portfolio due to this purchase was 0.31%. His holdings were 54,039 shares as of 06/30/2012. USG Corp., through its subsidiaries, is a manufacturer and distributor of building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. Usg Corporation has a market cap of $1.85 billion; its shares were traded at around $17.82 with and P/S ratio of 0.6.

Sold Out: Qiao Xing Mobile Communication Co., Ltd. (QXMCF)

Francis Chou sold out his holdings in Qiao Xing Mobile Communication Co., Ltd.. His sale prices were between $0.48 and $1.11, with an estimated average price of $0.75. QIAO XING MOBILE COMMUNICATION CO., LTD. is one of the domestic manufacturers of mobile handsets in China in terms of unit sales volume. with and P/S ratio of 0.06.

Added: Nokia Corporation (adr) (NOK)

Francis Chou added to his holdings in Nokia Corporation (adr) by 16666.7%. His purchase prices were between $2.14 and $5.47, with an estimated average price of $3.29. The impact to his portfolio due to this purchase was 3.18%. His holdings were 5,030,000 shares as of 06/30/2012. Nokia is the world leader in mobile communications. Nokia Corporation (adr) has a market cap of $10.34 billion; its shares were traded at around $2.57 with and P/S ratio of 0.2. The dividend yield of Nokia Corporation (adr) stocks is 6.4%.

Reduced: The Gap Inc. (GPS)

Francis Chou reduced to his holdings in The Gap Inc. by 64.42%. His sale prices were between $25.34 and $28.99, with an estimated average price of $26.97. The impact to his portfolio due to this sale was -1.74%. Francis Chou still held 133,590 shares as of 06/30/2012. The Gap, Inc. is a global specialty retailer which operates stores selling casual apparel, personal care and other accessories for men, women and children under the Gap, Banana Republic and Old Navy brands. The Gap Inc. has a market cap of $16.74 billion; its shares were traded at around $34.73 with a P/E ratio of 20.9 and P/S ratio of 1.2. The dividend yield of The Gap Inc. stocks is 1.5%. The Gap Inc. had an annual average earnings growth of 15.4% over the past 10 years. GuruFocus rated The Gap Inc. the business predictability rank of 2.5-star.

Here is the complete portfolio of Francis Chou. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Francis Chou.


Rating: 3.3/5 (8 votes)

Comments

Cogitator99
Cogitator99 - 2 years ago
The QXM buy was naive, at best.

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