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Donald Yacktman Buys 4 New Stocks in Q3

November 05, 2012 | About:
Holly LaFon

Holly LaFon

261 followers
Donald Yacktman of Yacktman Asset Management reported his third quarter portfolio on Monday, which his largest new buys were WellPoint Inc. (WLP), CH Robinson Worldwide (CHRW), Liberty Ventures (LVNTA) and Abbott Laboratories (ABR).

Yacktman and his associates, who are long-term focused investors, produced a 10.8% return over the last 10 years, beating the 5.33% returned by the S&P 500 over the same period.

WellPoint (WLP)



Yacktman purchased 3,518,467 shares of WellPoint for $59 per share on average in the third quarter. He owned the stock previously, but sold out in the fourth quarter of 2010 after the price appreciated.

In the first three quarters of the year, WellPoint’s stock declined about 12.5%, with a significant decrease in the third quarter, when Yacktman purchased it.

WellPoint is the largest health benefits company in the U.S. and offers a wide variety of medical and specialty products. Its affiliate health plans have nearly 34 million members and its subsidiaries serve about 65 million clients.

The company’s stock dipped in the third quarter when it reported its second quarter results on July 25. WellPoint’s net income was $643.6 million, or $1.94 per share, down from $701.6 million, or $1.86 per share, in the second quarter of 2011. The results were negatively affected by lower enrollment due to competition, and slightly higher medical cost trends, which caused the company to reduce its full-year 2012 outlook.

Wellpoint has a market cap of $19.93 billion; its shares were traded at around $60.83 with a P/E ratio of 8.6 and P/S ratio of 0.3. The dividend yield of Wellpoint stocks is 1.9%. Wellpoint had an annual average earnings growth of 17.2% over the past 10 years. GuruFocus rated Wellpoint the business predictability rank of 4-star.

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WLP data by GuruFocus.com

CH Robinson Worldwide (CHRW)

Yacktman purchased 700,000 shares of CH Robinson Worldwide for $57 per share on average in the third quarter. CH Robinson stock declined 11% year to date.

CH Robinson is a global third-party logistics company founded in 1905. It works with 53,000 transportation providers around the world.

For its nine months ended Sept. 30, net income increased 4.7% year over year to 337.4 million from $322.4 billion. Revenue increased 3.4% to $1.3 billion from $1.2 billion.

CH Robinson Worldwide has a market cap of $9.59 billion; its shares were traded at around $61.95 with a P/E ratio of 21.6 and P/S ratio of 0.9. The dividend yield of CH Robinson Worldwide stocks is 2.2%. CH Robinson Worldwide had an annual average earnings growth of 19% over the past 10 years. GuruFocus rated CH Robinson Worldwide the business predictability rank of 4-star.

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CHRW data by GuruFocus.com

Liberty Ventures (LVNTA)

Yacktman purchased 206,321 shares of Liberty Ventures in the third quarter. Its stock has gained 28% year to date.

Liberty Ventures is made of Liberty Interactive Corp’s interests in AOL, Expedia, Interval Leisure Group and other web sites, other non-consolidated assets, and green energy investments. Liberty Ventures has a market cap of $1.99 billion; its shares were traded at around $57.89.

In the company’s second quarter earnings, released Aug. 8, it reported a 5% year-over-year increase in revenue to $2.37 billion from $2.25 billion, on strong results at its QVC and eCommerce companies. OIBDA increased 1% to $455 million on strong WVC results, offset by weaker results at its eCommerce companies.

During the quarter, the company received approval from China’s government for a joint venture with China National Radio. It also repurchased $257 million of its stock. In total, is has repurchased approximately 24.6% of its shares since May 2006, and has approximately $429 million remaining under its present stock repurchase authorization.

Abbott Laboratories (ABT)

Yacktman purchased 3,000 shares of his smallest new position, Abbott Laboratories, for $66 per share on average, which is a 0.0012% weighting of his portfolio. Abbott Laboratories’ stock has increased 16% year to date.

Abbott Laboratories is a global, broad-based health care company devoted to discovering new medicines, new technologies and new ways to manage health.

Abbott’s earnings for the first nine months of 2012 increased 57.9% year over year to $4.9 billion from $3.1 billion. Net sales improved 2%, to $29.1 billion from $28.5 billion. The company narrowed its earnings per share guidance for 2012 to $5.06 to $5.08 from $5.00 to $5.10, due to strong performance for the year and product launches that will contribute to growth.

Abbott will split into two health care companies on Jan. 1, 2013.

Abbott Laboratories has a market cap of $102.77 billion; its shares were traded at around $65.04 with a P/E ratio of 13.1 and P/S ratio of 2.6. The dividend yield of Abbott Laboratories stocks is 3.1%. Abbott Laboratories had an annual average earnings growth of 7.9% over the past 10 years. GuruFocus rated Abbott Laboratories the business predictability rank of 4.5-star.

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ABT data by GuruFocus.com

See more of Donald Yacktman’s portfolio updates here. Also check out his undervalued stocks, top growth companies and high yield stocks.


Rating: 2.8/5 (10 votes)

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