10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

The largest discount in the last 10 years

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Patience Is Sexy - Contrarian David Dreman’s Top Picks Sizzle

July 19, 2013 | About:
Sally Jones

Sally Jones

49 followers
Once an old-fashioned virtue, patience can be exciting when it realizes a gain of 477% as seen by Hanesbrands Inc. (HBI) not that long ago. But only a Guru billionaire investor like David Dreman can persuasively extol the virtues of patience and make it look vastly appealing as evidenced by his top holdings.

Dreman Value Management currently lists 305 stocks, 44 of them new, with a total value of $3.78 billion and a quarter-over-quarter turnover of 9%.

Here’s a look at several of David Dreman’s top holdings, reflecting the sizzling influence of patience.

Hanesbrands Inc. (HBI) – Up 75% over 12 Months

Weighting: 1.3%

Shares Owned: 1,065,881

Share Price: $52.12

As the third largest Guru stakeholder of HBI, David Dreman holds 1.08% of shares outstanding. In 20 quarters of trading with gains, Dreman has made a fortune on HBI. He gained 477.8% in the first quarter of 2009, and has had numerous triple-digit gaining quarters.

He has realized an average gain of 166% on over 2 million shares bought at an average price of $19.57 per share and a gain of 115% on over 1.6 million shares sold at an average price of $24.29 per share.

T-shirt, underwear and sock maker Hanesbrands Inc. (HBI) has a market cap of $5.17 billion; its shares were traded at around $52.12 with a P/E ratio of 21.40 and a P/S ratio of 1.20. The dividend yield of HBI stocks is 0.40%. Hanesbrands has had an annual average earnings growth of 7.1% over the past five years.

Historical pricing:

1374258772062.png

Crane Company (CR) – Up 69% over 12 months

Weighting: 1.2%

Shares Owned: 846,303

Share Price: $63.96

As the third largest Guru stakeholder of CR, David Dreman holds 1.48% of shares outstanding. In 11 quarters of trading, Dreman has gained significantly in every quarter. His highest gain of 187.3% was made in the second quarter of 2009.

He realized an average gain of 67% on 936,557 shares bought at an average price of $38.25 per share and a gain of 46% on 90,254 shares sold at an average price of $43.69 per share.

Founded in 1855 Crane Company (CR) is a diversified manufacturer of engineered industrial products. Crane Company has a market cap of $3.67 billion; its shares were traded at around $63.96 with a P/E ratio of 17.10 and P/S ratio of 1.40. The dividend yield of CR stocks is 1.80%.

Historical pricing:

1374260529807.png

iShares Russell 2000 Index (ETF) (IWM) – Up 32% over 12 Months

Weighting: 1.4%

Shares Owned: 568,663

Share Price: $104.19

The iShares Russell 2000 Index Fund (ETF) (IWM) represents the approximately 2,000 smallest companies in the Russell 3000 Index.

As the fifth largest Guru stakeholder of IWM, David Dreman holds 0.3% of shares outstanding. In five quarters of trading with gains, Dreman realized an average gain of 27% on 833,667 shares bought at an average price of $81.92 per share and a gain of 28% on 265,004 shares sold at an average price of $81.17 per share.

The iShares Russell 2000 Index Fund seeks investment results that correspond to the price and yield performance of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The fund has a market cap of $18.59 billion; its shares were traded at around $104.19. The dividend yield of the iShares Russell 2000 Index stocks is 1.60%.

Historical pricing:

1374257087268.png

Here is the complete portfolio of David Dreman.



1. David Dreman's Undervalued Stocks

2. David Dreman's Top Growth Companies

3. David Dreman's High Yield stocks

4. Stocks that David Dreman keeps buying



If you are not yet a Premium Member, we invite you for a 7-day Free Trial.

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

The GuruFocus Score Board of Gurus shows which investors produced the largest average returns in the past 6 and 12 months, as well as on a historical basis.

[i][/i]

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.7/5 (12 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