100 Attractive Stocks Bought By Famous Investment Gurus Between May and October 2012

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Nov 03, 2012
Investment Gurus are asset or fund managers with big amounts of cash under management. They became popular by big returns and spectacular investment strategies. I talk about investors like George Soros and Warren Buffett. They all have one thing in common: The average return beats the market and if they invest, the market follows.

I made a screen of the biggest stock buys from 49 super investors over the recent six months and ranked them in my 100 Best Guru Buys list. They all bought 502 stocks within the past half of the year. The top stocks are Oracle (ORCL, Financial) and Google (GOOG, Financial). Google was bought by 14 investment professionals and Oracle by 11. ORCL stocks are one of the hot plays for investors because they are, on average, long in the stock with 0.52 percent of their full portfolio.

The most wanted sectors were the technology and financial sectors. Sixty percent of the 10 biggest buys were made within the technology sector and 20 within the financial sector. Below is a detailed overview of the best yielding dividend stocks that were bought by at least two stock market Gurus.

Here are the top 5 stocks:

Dell (DELL) has a market capitalization of $15.87 billion. The company employs 106,700 people, generates revenue of $62.07 billion and has a net income of $3.49 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5.37 billion. The EBITDA margin is 8.65 percent (the operating margin is 7.14 percent and the net profit margin 5.63 percent).

Financial Analysis: The total debt represents 20.78 percent of the company's assets and the total debt in relation to the equity amounts to 103.78 percent. Due to the financial situation, a return on equity of 41.86 percent was realized. Twelve trailing months earnings per share reached a value of $1.69. Last fiscal year, the company paid no dividends to shareholders. Dell was bought by 10 stock market professionals.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.42, the P/S ratio is 0.26 and the P/B ratio is finally 1.81. The current dividend yield amounts to 3.5 percent and the beta ratio has a value of 1.36.

Cisco Systems (CSCO) has a market capitalization of $92.00 billion. The company employs 66,639 people, generates revenue of $46.06 billion and has a net income of $8.04 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.67 billion. The EBITDA margin is 27.5 percent (the operating margin is 21.85 percent and the net profit margin 17.46 percent).

Financial Analysis: The total debt represents 17.79 percent of the company's assets and the total debt in relation to the equity amounts to 31.84 percent. Due to the financial situation, a return on equity of 16.32 percent was realized. Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, the company paid $0.28 in the form of dividends to shareholders. CSCO was bought by 9 investment professionals.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.66, the P/S ratio is 2 and the P/B ratio is finally 1.79. The dividend yield amounts to 3.23 percent and the beta ratio has a value of 1.24.

Oracle (ORCL) has a market capitalization of $150.4 billion. The company employs 115,899 people, generates revenue of $37.12 billion and has a net income of $9.98 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16.62 billion. The EBITDA margin is 44.78 percent (the operating margin is 36.92 percent and the net profit margin 26.89 percent).

Financial Analysis: The total debt represents 21.03 percent of the company's assets and the total debt in relation to the equity amounts to 37.71 percent. Due to the financial situation, a return on equity of 23.92 percent was realized. Twelve trailing months earnings per share reached a value of $2.02. Last fiscal year, the company paid $0.24 in the form of dividends to shareholders. ORCL was bought by 11 market professionals.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.47, the P/S ratio is 4.05 and the P/B ratio is finally 3.50. The dividend yield amounts to 0.77 percent and the beta ratio has a value of 1.09.

Google (GOOG) has a market capitalization of $226.05 billion. The company employs 53,546 people, generates revenue of $37.91 billion and has a net income of $9.74 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13.47 billion. The EBITDA margin is 35.53 percent (the operating margin is 30.69 percent and the net profit margin 25.69 percent).

Financial Analysis: The total debt represents 5.79 percent of the company's assets and the total debt in relation to the equity amounts to 7.23 percent. Due to the financial situation, a return on equity of 18.66 percent was realized. Twelve trailing months earnings per share reached a value of $31.92. Last fiscal year, the company paid no dividends to shareholders. GOOG was boughtt by 14 market professionals and is the best company with the most guru buys.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.55, the P/S ratio is 5.96 and the P/B ratio is finally 3.84. The beta ratio has a value of 1.08.

Berkshire Hathaway (BRK.A) has a market capitalization of $216.21 billion. The company employs 271,000 people, generates revenue of $143.69 billion and has a net income of $10.75 billion. The firm's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $23.47 billion. The EBITDA margin is 16.33 percent (the operating margin is 10.66 percent and the net profit margin 7.48 percent).

Financial Analysis: The total debt represents 15.38 percent of the company's assets and the total debt in relation to the equity amounts to 36.63 percent. Due to the financial situation, a return on equity of 6.37 percent was realized. Twelve trailing months earnings per share reached a value of $8,066.44. Last fiscal year, the company paid no dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.18, the P/S ratio is 1.50 and the P/B ratio is finally 1.31. The beta ratio has a value of 0.51.

Take a closer look at the full table of stocks with biggest Guru buys over the past six months. The average P/E ratio amounts to 20.64. Exactly 73 companies paid dividends of which two have a high yield. The average dividend yield amounts to 2.32 percent. The P/S ratio is 1.88 and P/B ratio 2.73.