FPA Capital Fund Finds Only 2 Purchase-Worthy Stocks in Q1
Like FPA colleague Steven Romick, the manager of the FPA Capital fund saw only two stocks that met their criteria for purchase in the fourth quarter: Apollo Group Inc. (APOL) and Centene Corporation (CNC).
The FPA Capital Fund equity portfolio has a total value of $855.3 million with 27 stocks at quarter-end, and had a quarter-over-quarter turnover of 3%.
New Buy: Apollo Group Inc. (APOL)
FPA Capital Fund bought 1,262,500 shares of Apollo Group for $19 per share on average in the fourth quarter. Its share price on Wednesday afternoon, $17.60, is near the company’s 10-year low.
Apollo Group Inc. is a for-profit education company incorporated in Arizona in 1981. Apollo Group has a market cap of $1.97 billion; its shares were traded at around $17.59 with a P/E ratio of 6.1 and P/S ratio of 0.5. Apollo Group had an annual average earnings growth of 14.5% over the past 10 years. GuruFocus rated Apollo Group Inc. the business predictability rank of 4.5-star.
New Buy: Centene Corporation (CNC)
FPA Capital purchased 138,200 shares of smaller holding Centene Corporation for $44 per share on average in the fourth quarter. The holding occupies 0.71% of the fund’s stock portfolio.
Centene Corporation was organized in Wisconsin in 1993 as a holding company for its initial health plan and reincorporated in Delaware in 2001. Centene Corporation has a market cap of $2.25 billion; its shares were traded around $45.82 with a P/E ratio of 1447.8 and P/S ratio of 0.3.
See FPA Capital’s stock portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Robert Rodriguez.