GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Ken Fisher's Largest Second Quarter Increases

July 17, 2013 | About:
Monica Wolfe

Monica Wolfe

131 followers
Ken Fisher, the investment analyst and founder, chairman and CEO of Fisher Investments is known for being the son of legendary investor Philip Fisher as well as for his monthly column in Forbes Magazine, “Portfolio Strategy.” The CEO and CIO of Fisher Investments currently holds 492 stocks coming from both American and Canadian markets. As of the second quarter, these stocks are valued at $38.512 billion. Also throughout the second quarter, Ken Fisher bought 45 new stocks, increased his stake in 192 companies, reduced his position in 221 stocks and sold out of 28 stocks.



The following companies are Ken Fisher’s largest second quarter increases.

CEMEX S.A.B. de C.V. (CX)

Fisher made his most notable increase in the company CEMEX. Fisher initially bought into CEMEX during the third quarter 2012 and had only made slight increases until the most recent quarter. During the second quarter Fisher increased his holdings 13895.6% by adding a total of 3,733,375 shares. He purchased these shares at an average price of $11.25 per share. Since his most recent addition, the price per share has decreased approximately -1.6%.

Fisher now holds on to 3,761,325 shares of CEMEX stock representing 0.33% of the company’s shares outstanding.

Ken Fisher’s holding history of CEMEX:



CEMEX is a Mexican-based global cement manufacturer with operations in North America, Europe, South America, Central America, the Caribbean, Africa, the Middle East, Australia and Asia.

CEMEX’s historical price, revenue and net income:

1374011225808.png

Recently CEMEX has announced the expansion of its Texas cement plant as well as its commitment to Egypt’s development. The company will invest approximately USD100 million to improve its operations in Egypt and continue to support the country’s housing, commercial and infrastructure development. Most recently on July 1 the company launched CEMEX Global Solutions, a service from the company which leverages over a century of industry-leading expertise to provide customers with the best value proposition in a full range of technical services for the cement, ready-mix concrete, and aggregates industry.

The GuruFocus analysis on CEMEX reports that the company’s revenue has been in decline over the past five years. The P/S ratio is close to a 3-year high of 3.08. The company’s gross and operating margins have also been in 5-year declines.

CEMEX has a market cap of $11.88 billion; its shares were traded at around $11.07 with a P/S ratio of 1.00.

There are currently 14 gurus that hold a stake in CEMEX. Click here to see their holding histories.

Infosys (INFY)

Ken Fisher’s second largest increase comes from Infosys Ltd. The guru increased his position 6093.24% by adding a total of 707,425 shares of the company’s stock. Fisher purchased these shares at an average price of $43.59 per share. Since his most recent increase, the price per share has increased approximately 6.5% from the average purchase price.

Fisher now holds 719,035 shares of Infosys, representing 0.13% of the company’s shares outstanding and 0.077% of his total portfolio.

Ken Fisher’s holding history of Infosys:



Infosys designs and delivers IT-enabled business solutions to its clients. The company provides end-to-end business solutions, including consulting, design, development, software re-engineering, maintenance, systems integration, package evaluation and implementation and infrastructure management services.

Infosys’ historical price, revenue and net income:

1374012819665.png

On July 12 Infosys released its results for theFirst Quarter ended June 30 and reported:

· Q1 revenues grew by 13.6% YoY and 2.7% QoQ. Revenues for Q1 were $1,991 million.

· Net profit was $418 million for the first quarter, representing a 5.9% decline from Q1 2012.

· EPS was $0.73.

· The company added 66 new clients over the quarter.

The Peter Lynch Valuation Chart shows that Infosys appears to be undervalued:[/url]1374012889438.png

The analysis on Infosys notes that the company’s revenue has slowed down in the past year. It also recognizes that its P/E ratio is near a 3-year low of 12.92, its P/B ratio is near a 5-year low of 3.13 and its P/S ratio is close to a 3-year low of 3.1. The company holds no debt and its dividend yield is at a 10-year high.

Infosys has a market cap of $25.3 billion; its shares were traded at around $46.42 with a P/E ratio of 15.20 and a P/S ratio of 3.50. The dividend yield for Infosys stocks is 1.60%. The company had an annual average earnings growth of 17.1% over the past ten years. Infosys also has the GuruFocus business predictability rank of 4.5-star.

There are currently nine gurus that hold positions in INFY. Click here to see their holding histories.

Danone (DANOY)

Ken Fisher upped his position in Danone 2266.53% by adding a total of 3,395,873 shares. Fisher bought these shares at an average price of $14.97 per share. Since his recent increase the price per share has decreased approximately -0.5% from his average purchase price.

Fisher now holds 3,545,700 shares of Danone representing 0.14% of his total portfolio.

Fisher’s holding history on Danone:



Danone is a global producer of fresh dairy products, primarily yogurts and water. Danone is the parent company of Dannon which is the top-selling brand of yogurt worldwide.

Danone’s historical price, revenue and net income:

1374072393430.png

The company is set to release its first half sales and results on July 29.

The Peter Lynch Chart shows that Danone appears to be overvalued:

1374072990816.png

The analysis on Danone notes that the company has no debt and its operating margin is expanding. It also reports that the company has issued EUR349 million of debt over the past year but that its debt level is acceptable.

Danone has a market cap of $45.5 billion; its shares were traded at around $15.09 with a P/E ratio of 20.80 and a P/S ratio of 1.70. The company currently maintains a 2% dividend yield. Danone had an annual average earnings growth of 1.8% over the past ten years. [/url]Ken Fisher and Tom Russo hold a stake in Danone. Click here to see their holding histories.

Bank of America (BAC)

Ken Fisher bought 20,368,943 shares of Bank of America during the second quarter representing a 1427.47% increase in his holdings. Fisher purchased these shares at an average price of $12.75 per share. Since his most recent and largest increase of Bank of America stock, the price per share has increased approximately 9.2%.

Ken Fisher now owns 21,795,870 shares of Bank of America, representing 0.20% of the company’s shares outstanding and 0.73% of his total portfolio.

Fisher’s holding history of Bank of America:



Bank of America, through its banking and non-banking subsidiaries throughout the U.S. and in selected international markets, provides a diversified range of banking and non-banking financial services and products through six business segments: Deposits, Card Services, Consumer Real Estate Services, Global Commercial Banking, Global Banking & Markets and Global Wealth & Investment Management.

Bank of America’s historical price, revenue and net income:

1374074665781.png

Bank of America released its second quarter results earlier this morning. The results highlighted:

· Net income rose 63% to $4.0 billion from 2.5 billion in the second quarter 2012.

· Diluted EPS increased to $0.32 from $0.19 in second quarter 2012.

· Revenue rose 3% to $22.9 billion from $22.2 billion a year ago.

Some other highlights include:

· Deposit balances up 4% companywide to $1.1 trillion.

· Commercial loan balances up 20% to $381 billion.

· Global investment banking fees up 36% to $1.6 billion; maintained No. 2 ranking in global investment banking fees.

You can view their second quarter earnings results here.

The Peter Lynch Chart shows that Bank of America is overvalued:
1374075247204.png

Bank of America has a market cap of $151.24 billion. Its shares are currently being traded at around $14.07 with a P/E ratio of 43.40, a P/B ratio of 0.70 and a P/S ratio of 1.80.

There are currently 38 gurus that hold positions in Bank of America. Click here to see their holding histories.

Citigroup (C)

Fisher’s fifth largest increase also came from the banking industry. Fisher upped his holdings in Citigroup 1384.32% by adding a total of 5,258,698 shares to his portfolio. Fisher purchased these shares at an average price of $48.08 per share. Since this buy, the price per share has increased approximately 7.8% from his average purchase price.

Fisher now owns a total of 5,638,574 shares of Citigroup, representing 0.19% of the company’s shares outstanding and 0.7% of his total portfolio.

Fisher’s holding history of Citigroup:



Citigroup is a global financial services holding company, whose businesses provide consumers, corporations, governments and institutions with a range of financial services such as consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

Citigroup’s historical price, revenue and net income:

1374077411690.png

Citigroup released its second quarter results on July 15. The results highlighted:

· Net income of $4.2 billion, or $1.34 per diluted share, compared to the net income of $2.9 billion in the same quarter 2012.

· Revenue of $20.5 billion.

· Net credit losses of $2.6 billion declined 25% versus prior year period.

· Book value per share increased to $63.02.

· Tangible book value per share increased to $53.10.

You can view Citigroup’s full second quarter earnings here.

The Peter Lynch Chart shows that Citigroup appears to be slightly overvalued:
1374077467589.png

Citigroup has a market cap of $15.38 billion. Its shares are currently being traded at around $52.07 with a P/E ratio of 18.20, a P/B ratio of 0.80 and a P/S ratio of 2.20.

There are currently 44 gurus that maintain holdings in Citigroup. Click here to see their holding histories.

You can view Ken Fisher’s complete portfolio here. Also check out his Top Growth, Undervalued and Top Yielding stocks.

Try a free 7-day GuruFocus Premium Membership here.


Rating: 4.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK