New Spain Guru Francisco Parames and His Top 5 New Q1 Buys
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), Telefonica SA (XMCE:TEF), Royal Imtech NV (XAMS:IM), Tata Motors (TTM) and WH Smith PLC (LSE:SMWH).
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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