Francisco Garcàa Paramés is the Spanish investor that is oftentimes referred to as the “Spanish Warren Buffett.” Paramés is the chief management officer at Bestinver and has been unanimously honored for introducing value investing to Spanish and Portuguese investors.
Paramés started out at Bestinver in 1990 when it was a very small investment management business that only invested in Spain. He has now expanded that business into a global value investing fund with several branches including Bestinfond which is an open-end fund that invests in Spanish equity securities. Year to date the fund is up 14.98%.
One of Paramés’ primary investing principles is focused on time. In an interview, the guru said:
We follow companies for a long time, sometimes many years, before investing. Our target investor is one who shares our investment philosophy, is patient, and is looking for medium- to long-term investments.
During the first quarter, Paramés added eight new stocks to his portfolio, bringing his total to 95 stocks valued at approximately $1.2 billion.
Prosegur Security Company (XMCE:PSG)
Paramés made his largest increase of the quarter in Prosegur Security Company. Paramés increased his position 708.75% by purchasing a total of 285,732 shares. He purchased these shares at an average price of $4.47 per share. Since his first quarter buy, the price per share has dropped approximately 6.5%.
Paramés currently holds on to 326,047 shares of Prosegur Security, representing 0.05% of the company’s shares outstanding and 0.12% of his total portfolio.
Paramés’ holding history of Prosegur Security as of March 31:
Prosegur offers integrated and specialized security services which, combined with the most advanced technologies, seek maximum efficiency for the business management of companies. The company is based out of Spain and offers its services on three different continents: Asia, Europe and Latin America.
Prosegur’s historical price, revenue and net income:
The analysis on Prosegur Security states that the company has shown signs of expansion in its operating margin, its dividend yield is at a one-year high and its P/S ratio is at a three-year low.
Prosegur Security has a market cap of €2.6 billion. Its shares are currently being traded at around €4.18 with a P/E ratio of 15.06, a P/S ratio of 0.66 and a P/B ratio of 3.34. The company had an annual average earnings growth of 23.2%.
Mapfre (XMCE:MAP)[url=http://www.gurufocus.com/stock/XMCE:MAP]
Paramés upped his position in Mapfre during the first quarter by 300.42%. The Spanish Guru purchased a total of 480,156 shares valued at €2.44 per share. Since his increase, the share price has jumped 8.6%. Paramés now holds on to a total of 639,983 shares of Mapfre, representing 0.02% of the company’s shares outstanding and 0.13% of his total portfolio.
Paramés’ holding history of Mapfre:
Mapfre is an international insurance company headquartered in Madrid, Spain. The company promotes and finances not-for-profit activities of general public interest through five institutes specializing in Social Action; Insurance Science; Culture; Prevention, Health and Environment; and Road Safety.[/url]
Mapfre’s historical price, revenue and net income:
The analysis on Mapfre reports:
· The company displays poor financial strength.
· The P/E ratio is at a 2-year high.
· The P/S ratio is at a 1-year high.
· The operating margin is expanding.
Mapfre has a market cap of €8.24 billion. Its shares are currently being traded at around €2.65 with a P/E ratio of 12.17, a P/S ratio of 0.38 and a P/B ratio of 0.78. The dividend yield of Mapfre stocks is 3.28%. The company had an annual average earnings growth of 24.8% over the past five years.
Galp Energia (XLIS:GALP)[url=http://www.gurufocus.com/stock/XLIS:GALP]
During the first quarter, Paramés increased his position 266.74% by adding a total of 555,258 shares. He purchased these shares at an average price of €12.05 per share. Since his buy, the price per share has dropped approximately -3.7%.
Paramés currently holds on to 763,421 shares of Galp Energia, representing 0.09% of the company’s shares outstanding and 0.8% of his total portfolio.
Paramés’ holding history of Galp:
Galp Energia is Portugal’s oil and natural gas integrated operator. The company is focused on exploration and production of oil and natural gas as well as refining and marketing oil products, natural gas marketing and sales and power generation.
Galp Energia’s historical price, revenue and net income:
The analysis on Galp Energia reports that the company’s revenue has been in decline over the past year. It also notes that the P/E ratio is near a 5-year high of 43.62 per share and the company’s P/S ratio is sitting near a 5-year low of 0.53.
Galp Energia has a market cap of €9.75 billion. Its shares are currently trading at around €11.61 with a P/E ratio of 41.49, a P/S ratio of 0.53 and a P/B ratio of 1.38. The company had an annual average earnings growth of 30.9% over the past five years.
Iberdrola ([/url]XMCE:IBE)[url=http://www.gurufocus.com/stock/XMCE:IBE]
Paramés purchased 3,267,708 shares of Iberdrola during the first quarter representing a 198.84% increase in his holdings. Paramés purchased these shares at an average price of €1.96 per share. Since his most recent purchase, the share price has increased 94.9%. Since his initial buy into the company in 2012Q2, the share price has jumped approximately 118.3%.
Paramés holds a total of 4,911,092 shares representing approximately 0.76% of his total portfolio.
Paramés’ holding history of Iberdrola:
Iberdrola is a Spanish multinational electric utility company and is currently Spain’s largest energy group based on market capitalization. The company operates on four continents serving approximately 31.67 million customers. The company’s primary subsidiaries include: Scottish Power (Scotland), Iberdrola USA and Elektro (Brazil).
Iberdrola’s historical price, revenue and net income:
The GuruFocus analysis reports:
· The company’s operating and gross margins have been in long-term declines.
· The revenue has been in decline over the past year.
· The price is sitting near a 3-year high.
· The P/S and P/E ratios are sitting at 1-year highs.
Iberdrola has a market cap of €47.33 billion. Its shares are being traded at around €3.82 with a P/E ratio of 16.64, a P/S ratio of 1.38 and a P/B ratio of 0.70. The company had an annual average earnings growth of 29.4% over the past five years.
Wm Morrison Supermarkets PLC ([/url]LSE:MRW)[url=http://www.gurufocus.com/stock/LSE:MRW]
Paramés increased his position in Wm Morrison Supermarkets 101.07% during the first quarter. The guru purchased a total of 5,608,502 shares valued at £2.60 per share. Since this buy, the price per share has increased 8.5%. Paramés owns 11,157,443 shares of Wm Morrison Supermarkets, representing 0.48% of the company’s shares outstanding and 3.1% of his total portfolio.
Paramés’ holding history of Wm Morrison Supermarkets:
Wm Morrison Supermarkets is the UK’s fourth largest supermarket chain. The company operates over 400 stores primarily specializing in food and grocery items. The company sources and processes most of the fresh food that they sell through the use of their own manufacturing facilities.
Wm Morrison Supermarkets’ historical price, revenue and net income:[/url]
The Peter Lynch Chart shows that Wm Morrison currently appears to be undervalued:
The analysis on Wm Morrison reports:
· The company’s operating margin is expanding.
· The dividend yield is at a 10-year high.
· The P/B ratio is near a 5-year low of 1.16.
· The P/S ratio is near a 10-year low of 0.34.
· The P/E ratio is near a 1-year high of 11.3.
· The company has issued £1.2 billion of debt over the past three years.
Wm Morrison Supermarkets has a market cap of £6.56 billion. Its shares are currently being traded at £2.85 with a P/E ratio of 10.73, a P/S ratio of 0.38 and a P/B ratio of 1.21. The dividend yield of Wm Morrison stocks is 4.14%. The company had an annual average earnings growth of 9.6% over the past five years.
Paramés started out at Bestinver in 1990 when it was a very small investment management business that only invested in Spain. He has now expanded that business into a global value investing fund with several branches including Bestinfond which is an open-end fund that invests in Spanish equity securities. Year to date the fund is up 14.98%.
One of Paramés’ primary investing principles is focused on time. In an interview, the guru said:
We follow companies for a long time, sometimes many years, before investing. Our target investor is one who shares our investment philosophy, is patient, and is looking for medium- to long-term investments.
During the first quarter, Paramés added eight new stocks to his portfolio, bringing his total to 95 stocks valued at approximately $1.2 billion.
Prosegur Security Company (XMCE:PSG)
Paramés made his largest increase of the quarter in Prosegur Security Company. Paramés increased his position 708.75% by purchasing a total of 285,732 shares. He purchased these shares at an average price of $4.47 per share. Since his first quarter buy, the price per share has dropped approximately 6.5%.
Paramés currently holds on to 326,047 shares of Prosegur Security, representing 0.05% of the company’s shares outstanding and 0.12% of his total portfolio.
Paramés’ holding history of Prosegur Security as of March 31:
Prosegur offers integrated and specialized security services which, combined with the most advanced technologies, seek maximum efficiency for the business management of companies. The company is based out of Spain and offers its services on three different continents: Asia, Europe and Latin America.
Prosegur’s historical price, revenue and net income:
The analysis on Prosegur Security states that the company has shown signs of expansion in its operating margin, its dividend yield is at a one-year high and its P/S ratio is at a three-year low.
Prosegur Security has a market cap of €2.6 billion. Its shares are currently being traded at around €4.18 with a P/E ratio of 15.06, a P/S ratio of 0.66 and a P/B ratio of 3.34. The company had an annual average earnings growth of 23.2%.
Mapfre (XMCE:MAP)[url=http://www.gurufocus.com/stock/XMCE:MAP]
Paramés upped his position in Mapfre during the first quarter by 300.42%. The Spanish Guru purchased a total of 480,156 shares valued at €2.44 per share. Since his increase, the share price has jumped 8.6%. Paramés now holds on to a total of 639,983 shares of Mapfre, representing 0.02% of the company’s shares outstanding and 0.13% of his total portfolio.
Paramés’ holding history of Mapfre:
Mapfre is an international insurance company headquartered in Madrid, Spain. The company promotes and finances not-for-profit activities of general public interest through five institutes specializing in Social Action; Insurance Science; Culture; Prevention, Health and Environment; and Road Safety.[/url]
Mapfre’s historical price, revenue and net income:
The analysis on Mapfre reports:
· The company displays poor financial strength.
· The P/E ratio is at a 2-year high.
· The P/S ratio is at a 1-year high.
· The operating margin is expanding.
Mapfre has a market cap of €8.24 billion. Its shares are currently being traded at around €2.65 with a P/E ratio of 12.17, a P/S ratio of 0.38 and a P/B ratio of 0.78. The dividend yield of Mapfre stocks is 3.28%. The company had an annual average earnings growth of 24.8% over the past five years.
Galp Energia (XLIS:GALP)[url=http://www.gurufocus.com/stock/XLIS:GALP]
During the first quarter, Paramés increased his position 266.74% by adding a total of 555,258 shares. He purchased these shares at an average price of €12.05 per share. Since his buy, the price per share has dropped approximately -3.7%.
Paramés currently holds on to 763,421 shares of Galp Energia, representing 0.09% of the company’s shares outstanding and 0.8% of his total portfolio.
Paramés’ holding history of Galp:
Galp Energia is Portugal’s oil and natural gas integrated operator. The company is focused on exploration and production of oil and natural gas as well as refining and marketing oil products, natural gas marketing and sales and power generation.
Galp Energia’s historical price, revenue and net income:
The analysis on Galp Energia reports that the company’s revenue has been in decline over the past year. It also notes that the P/E ratio is near a 5-year high of 43.62 per share and the company’s P/S ratio is sitting near a 5-year low of 0.53.
Galp Energia has a market cap of €9.75 billion. Its shares are currently trading at around €11.61 with a P/E ratio of 41.49, a P/S ratio of 0.53 and a P/B ratio of 1.38. The company had an annual average earnings growth of 30.9% over the past five years.
Iberdrola ([/url]XMCE:IBE)[url=http://www.gurufocus.com/stock/XMCE:IBE]
Paramés purchased 3,267,708 shares of Iberdrola during the first quarter representing a 198.84% increase in his holdings. Paramés purchased these shares at an average price of €1.96 per share. Since his most recent purchase, the share price has increased 94.9%. Since his initial buy into the company in 2012Q2, the share price has jumped approximately 118.3%.
Paramés holds a total of 4,911,092 shares representing approximately 0.76% of his total portfolio.
Paramés’ holding history of Iberdrola:
Iberdrola is a Spanish multinational electric utility company and is currently Spain’s largest energy group based on market capitalization. The company operates on four continents serving approximately 31.67 million customers. The company’s primary subsidiaries include: Scottish Power (Scotland), Iberdrola USA and Elektro (Brazil).
Iberdrola’s historical price, revenue and net income:
The GuruFocus analysis reports:
· The company’s operating and gross margins have been in long-term declines.
· The revenue has been in decline over the past year.
· The price is sitting near a 3-year high.
· The P/S and P/E ratios are sitting at 1-year highs.
Iberdrola has a market cap of €47.33 billion. Its shares are being traded at around €3.82 with a P/E ratio of 16.64, a P/S ratio of 1.38 and a P/B ratio of 0.70. The company had an annual average earnings growth of 29.4% over the past five years.
Wm Morrison Supermarkets PLC ([/url]LSE:MRW)[url=http://www.gurufocus.com/stock/LSE:MRW]
Paramés increased his position in Wm Morrison Supermarkets 101.07% during the first quarter. The guru purchased a total of 5,608,502 shares valued at £2.60 per share. Since this buy, the price per share has increased 8.5%. Paramés owns 11,157,443 shares of Wm Morrison Supermarkets, representing 0.48% of the company’s shares outstanding and 3.1% of his total portfolio.
Paramés’ holding history of Wm Morrison Supermarkets:
Wm Morrison Supermarkets is the UK’s fourth largest supermarket chain. The company operates over 400 stores primarily specializing in food and grocery items. The company sources and processes most of the fresh food that they sell through the use of their own manufacturing facilities.
Wm Morrison Supermarkets’ historical price, revenue and net income:[/url]
The Peter Lynch Chart shows that Wm Morrison currently appears to be undervalued:
The analysis on Wm Morrison reports:
· The company’s operating margin is expanding.
· The dividend yield is at a 10-year high.
· The P/B ratio is near a 5-year low of 1.16.
· The P/S ratio is near a 10-year low of 0.34.
· The P/E ratio is near a 1-year high of 11.3.
· The company has issued £1.2 billion of debt over the past three years.
Wm Morrison Supermarkets has a market cap of £6.56 billion. Its shares are currently being traded at £2.85 with a P/E ratio of 10.73, a P/S ratio of 0.38 and a P/B ratio of 1.21. The dividend yield of Wm Morrison stocks is 4.14%. The company had an annual average earnings growth of 9.6% over the past five years.
