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Meridian Funds' Top Five Second Quarter Increases

July 30, 2013 | About:
Monica Wolfe

Monica Wolfe

119 followers
During the second quarter the Meridian Funds added 15 stocks, bringing their total to 149 stocks valued at approximately $2.7 billion. According to Meridian’s website, the fund invests primarily in equities which they believe to be undervalued in relation to the company’s long-term earning power or asset valued. This could also include companies that have suffered earnings declines but which the fund’s portfolio managers believe are positioned to resume long-term growth. Jamie England and Jim O’Connor serve as co-portfolio managers of the Meridian Funds.



The following five companies represent the five stocks that O’Connor and England made the largest increases in.

Wolverine Worldwide (WWW)

The Meridian Funds made their largest increase of the quarter in Wolverine Worldwide where they increased their position by 791.3%. The fund purchased a total of 182,000 shares at an average cost of $49.65 per share. Since their most recent increase the share price has increased 16.3%.

The Meridian Funds currently holds on to 205,000 shares of Wolverine Worldwide, representing 0.41% of the company’s shares outstanding and 0.42% of their total portfolio.

The Meridian Funds’ holding history of Wolverine:



Wolverine Worldwide is one of the world’s leading marketers of branded casual, active lifestyle, work, outdoor sport, athletic, children’s and uniform footwear and apparel. The company’s portfolio includes: Sperry Top-Sider, Wolverine, Keds, Stride Rite, Chaco and Hush Puppies. The company is also the global footwear licensee of Cat, Harley-Davidson and Patagonia.

Wolverine’s historical price, revenue and net income:

1375211949354.png

The company’s second quarter financials reported:

· Record revenue of $587.8 million, up 88% from 2012.

· Fully diluted EPS of $0.46, a 12.2% increase from the second quarter 2012.

· Operating free cash flow of $165.1 million.

The Peter Lynch Chart shows that Wolverine Worldwide appears to be overvalued:

1375212338994.png

Wolverine Worldwide has a market cap of $2.91 billion. Its shares are currently trading at around $57.61 with a P/E ratio of 36.80, a P/S ratio of 1.30 and a P/B ratio of 4.10. The company had an annual average earnings growth of 7.1% over the past 10 years.

GuruFocus rated Wolverine Worldwide the
business predictability rank of 3-star.

There are currently five gurus that hold a position in WWW. Click here to see their holding histories.

FMC Corporation (FMC)

During the second quarter the Meridian Funds increased their position in FMC Corporation 329.03% by adding 631,400 shares to their holdings. They purchased these shares at an average price of $60.81 per share. Since their most recent buy, the share price has increased 4.6%.

The fund now holds on to a total of 823,300 shares of FMC, representing 0.60% of the company’s shares outstanding and 1.9% of the fund’s total portfolio.

The Meridian Funds’ holding history of FMC Corporation:



FMC is one of the world’s leading specialty chemical companies. The company’s chemistries help to grow the world’s food, enable new innovations in pharmaceutical delivery, enhance foods and beverages, contribute to a more sustainable energy supply, facilitate the remediation of the environment and advance the manufacture of hundreds of essential products.

FMC’s historical price, revenue and net income:

1375207952867.png

The company recently released its second quarter results which reported:

· Revenues up 6% to $959.4 million.

· Adjusted earnings up 2% to $0.94 per diluted share.

· $250 million share repurchase program commencing in the third quarter.

· Expected full-year outlook for adjusted earnings of $3.72 to $3.87 per diluted share, a 13% increase from the previous year.

The Peter Lynch Chart shows that the company currently appears to be overvalued:

1375210498724.png

FMC Corporation has a market cap of $8.85 billion. Its shares are currently being traded at around $64.73 with a P/E ratio of 19.70, a P/S ratio of 2.40 and a P/B ratio of 6.20. The company has seen an annual average earnings growth of 10.6% over the past ten years.

GuruFocus rated FMC Corporation the
business predictability rank of 2.5-star.

There are currently 11 gurus that hold a position in FMC. Click here to see their holding histories.

FLIR Systems (FLIR)

The Meridian Funds upped their position in FLIR Systems during the second quarter by 257.61%. They purchased a total of 368,900 shares at $24.82 per share. Since this buy the share price is up 29%. The Meridian Funds now holds on to 512,100 shares or FLIR Systems, or 0.35% of the company’s shares outstanding and 0.52% of their total portfolio.

The Meridian Funds’ holding history of FLIR Systems:



FLIR Systems designs, manufactures and markets sensor systems that enhance perception and awareness.

FLIR Systems’ historical price, revenue and net income:

1375205985056.png

The company recently released its second quarter results which reported:

· Revenue of $389.3 million, up 15% from second quarter.

· Operating income of $70.3 million, up 16%.

· Net income of $50.2 million, up 22%.

· Diluted EPS of $0.35, an increase of 30% from a year ago.

The Peter Lynch Chart shows that FLIR Systems currently appears to be overvalued:

1375211210209.png

FLIR Systems has a market cap of $4.49 billion. Its shares are currently being traded at around $32.12 with a P/E ratio of 21.30, a P/S ratio of 3.40 and a P/B ratio of 3.10. The company has seen an annual average earnings growth of 18.8% over the past ten years.

GuruFocus rated FLIR Systems the
business predictability rank of 3.5-star.

There are currently nine gurus that hold a position in FLIR. Click here to see their holding histories.

Masimo Corporation (MASI)

During the second quarter The Meridian Funds purchased a total of 344,510 shares of Masimo, representing a 130.2% increase. They purchased these shares at an average price of $21.04 per share. Since this buy, the price per share has increased approximately 11.9%.

The Meridian Funds now holds on to 609,110 shares of Masimo, representing 1.06% of the company’s shares outstanding and 0.48% of their total portfolio.

The Meridian Funds’ holding history of Masimo:



Masimo is a global medical technology company that develops and manufactures noninvasive patient monitoring technologies, including medical devices and a wide array of sensors.

Masimo’s historical price, revenue and net income:

1375205061156.png

The company is set to release its second quarter financial results after market close on July 31.

The Peter Lynch Chart shows that Masimo currently appears to be overvalued:

1375205322513.png

The analysis on the company reports that the gross margin and operating margin have been in long term declines. It also notes the company’s asset growth is faster than its revenue growth.

Masimo has a market cap of $1.32 billion. Its shares are currently being traded at around $23.42 with a P/E ratio of 21.60, a P/S ratio of 2.70 and a P/B ratio of 5.0. The company had an annual average earnings growth of 5.3% over the past five years.

There are
seven gurus that hold a position in Masimo. Click here to see their holding histories.

Humana (HUM)

The fifth largest increase of the second quarter was made in Humana. The Meridian Funds increased their position 115.09% by adding 63,300 shares to their holdings. Since this most recent buy, the price per share is up 14.2%. The Fund now holds on to 118,300 shares of Humana, representing 0.07% of their shares outstanding and 0.37% of the fund’s total portfolio.

The Meridian Funds’ holding history of Humana:



Humana is a health care company that offers a variety of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being.

Humana’s historical price, revenue and net income:

1375204000015.png

Humana recently announced that it would be acquiring American Eldercare. American Eldercare is the largest provider of nursing home diversion services in Florida. Annualized revenues for American Eldercare of approximately $75 million are anticipated to increase to over $1 billion in 2015.

The Peter Lynch Chart shows that Humana is currently undervalued:

1375204113590.png

Human has a market cap of $14.23 billion. Its shares are currently being traded at around $89.72 with a P/E ratio of 10.10, a P/S ratio of 0.40 and a P/B ratio of 1.50. The company has seen an annual average earnings growth of 21.2% over the past ten years.

GuruFocus rated Humana the
business predictability rank of 3.5-star.

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

You can view The Meridian Fundscomplete portfolio here. Also check out their undervalued stocks and top growth companies.

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Rating: 3.7/5 (3 votes)

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