New Spain Guru Francisco Parames and His Top 5 New Q1 Buys

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Jul 18, 2013
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New guru Francisco Garcia Parames is chief investment officer of Bestinver Asset Management, a Spanish money management firm founded in 1987, with €6.5 billion in assets under management. The firm has seven mutual funds, four pension funds and eight sicavs, with three cornerstones, with a 21% annual average Spanish equity return since 1993 and 11% 11% annual average global equity return since 1998.


Bestinver encapsulates its value investment philosophy on its website: “We believe the most reliable way to obtain an adequate return for our customers is through long term investments in well managed, understandable and undervalued businesses with significant long-term capital upside.”


The firm’s portfolio is heavily populated by international stocks. It currently holds 95 stocks, with a total value of $1.17 billion, and introduced eight new positions in the first quarter of 2013.


The largest new positions Parames bought during the quarter are: General Dynamics (GD, Financial), Telefonica SA (XMCE:TEF, Financial), Royal Imtech NV (XAMS:IM, Financial), Tata Motors (TTM, Financial) and WH Smith PLC (LSE:SMWH, Financial).


General Dynamics (GD)


Parames purchased 536,573 shares of General Dynamics for $69 per share on average in the second quarter, a holding occupying 2.5% of the portfolio. Shares have since increased 21% to a new 52-week high. The share price is $83.65 Thursday afternoon.





General Dynamics Corporation was incorporated in Delaware. General Dynamics has a market cap of $29.59 billion; its shares were traded at around $83.70 with a P/E ratio of 10.80 and P/S ratio of 0.90. The dividend yield of General Dynamics stocks is 2.60%. General Dynamics had an annual average earnings growth of 5.7% over the past 10 years.


Telefonica SA (XMCE:TEF)


Parames bought 795,329 shares of Telefonica SA in the first quarter at an average price of $11. Since then, the price dropped 8%. This holding equates to 0.71% of the portfolio.





Telefonica SA was incorporated on April 19, 1924, under the laws of the Kingdom of Spain. Telefonica SA has a market cap of $59.4 billion; its shares were traded at around $12.92 with a P/E ratio of 10.80 and P/S ratio of 0.70. The dividend yield of Telefonica SA stocks is 5.20%. Telefonica SA had an annual average earnings growth of 8.9% over the past 10 years.


Royal Imtech NV (XAMS:IM)


Parames bought 893,306 shares of Royal Imtech NV, a 0.67% holding. The stock’s price has plunged 83% from its average price during the first quarter and has a share price of $2.29.





Royal Imtech is a European technical services provider. Royal Imtech NV has a market cap of $193.829 million; its shares were traded at around $2.29 with a P/E ratio of 1.29 and P/S ratio of 0.04. The dividend yield of Royal Imtech NV stocks is 26.03%.


Tata Motors (TTM)


Parames purchased 362,264 shares of Tata Motors for $28 per share on average in the first quarter, after which the stock dropped 12%. The holding accounts of 0.58% of the portfolio.





Tata Motors is an Indian automotive manufacturer. Tata Motors Ltd. has a market cap of $15.72 billion; its shares were traded at around $24.40 with a P/E ratio of 8.10 and P/S ratio of 0.60. The dividend yield of Tata Motors Ltd. stocks is 1.30%.


WH Smith PLC (LSE:SMWH)


Parames’ fifth-largest new position was in WH Smith PLC, of which he bought 689,159 shares at an average price of $7. The stock went up 11% since then.





WH Smith is a British book store chain appearing in high streets, shopping centers, airports and elsewhere, primarily in the UK and growing internationally.


WH Smith PLC has a market cap of $942.33 million; its shares were traded at around $7.55 with a P/E ratio of 11.36 and P/S ratio of 0.81. The dividend yield of WH Smith PLC stocks is 3.71%. WH Smith PLC had an annual average earnings growth of 9.9% over the past five years.


See more of Francisco Garcia Parames’ portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Francisco Garcia Parames.



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