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John Hussman's Second Quarter Increases

August 02, 2013 | About:
Monica Wolfe

Monica Wolfe

119 followers
John Hussman, the president and principal shareholder of Hussman Econometrics Advisors bought 50 new stocks bringing his total to 238 stocks valued at about $2.2 billion as of the second quarter.



The following companies represent the stocks that John Hussman made the largest increases in.

Safeway (SWY)

John Hussman made his largest increase of the quarter in Safeway. The guru upped his position in Safeway 40283.3% by purchasing 1,208,500 shares. He bought these shares at an average price of $24.40 per share, and now the stock is trading up approximately 5.1% from Hussman’s average purchase price.

Hussman now holds on to a total of 1,211,500 shares of Safeway, representing 0.51% of the company’s shares outstanding and 1.3% of his total portfolio. Hussman’s holding history of Safeway:



Safeway is one of the largest food and drug retailers in North America based on sales. The company operates 1,412 stores in the U.S. In June 2013, Safeway announced the sale of its Canadian operations for C$5.8 billion.

Safeway’s historical revenue and net income:

1375462971679.png

The company’s second quarter results highlighted:

· Income from continuing operations increased 22%.

· Adjusted diluted EPS of $0.51.

· Gain on the sale of investments of $8.5 million ($0.02 per diluted share)

· Adjusted net income was $125.1 million, up from $122.7 million from last year

· Sales declined 1.6% to $8.7 billion.

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

1375463314546.png

Safeway has a market cap of $6.2 billion. Its shares are currently trading at around $25.54 with a P/E ratio of 10.20, a P/S ratio of 0.10 and a P/B ratio of 2.00. The company has seen an annual average earnings growth of 5.3% over the past ten years.

The Company and its subsidiaries mainly sell supplemental health and life insurance in the United States and Japan. This year Aflac was ranked as the Number 1 provider of guaranteed-renewable insurance in the U.S.

Aflac’s historical revenue and net income:

1375463644711.png

The company’s second quarter financials reported:

· Revenues rose 2.4% to $6.0 billion from the same quarter last year.

· Net earnings were $899 million, or $1.90 per diluted share, compared to $483 million and $1.03 per diluted share last year.

· Net earnings of $130 million.

The Peter Lynch Chart shows that Aflac currently appears to be undervalued:
1375464005029.png

Aflac has a market cap of $28.25 billion. Its shares are currently trading at around $62.43 with a P/E ratio of 9.90, a P/S ratio of 1.20 and a P/B ratio of 1.80. The company had an average annual earnings growth of 12.1% over the past ten years.

GuruFocus rated Aflac the
business predictability rank of 5-star.

There are currently 12 gurus that hold a position in Aflac. Click here to see their holding histories.

Procter & Gamble (PG)

During the second quarter, Hussman purchased a total of 302,000 shares of Procter & Gamble, representing a 11185.2% increase in the guru’s holding on the company. Hussman purchased these shares at an average price of $78.48 per share. Since this buy, Hussman has seen growth of 3.4% in share price. The guru now holds on to a total of 304,700 shares of Procter & Gamble, representing 0.01% of the company’s shares outstanding and 1.1% of his total portfolio.



The company is focused on providing branded consumer packaged goods. Procter & Gamble’s product portfolio includes Always, Bounty, Charmin, Crest, Dawn, Downy, Duracell, Febreze, Gillette, Head & Shoulders, Mach3, Oral-B, Pampers, Pantene, Vicks and several others.

Procter & Gamble’s historical revenue and net income:

1375464565931.png

The company released its fiscal year financials yesterday which reported:

· Net earnings per share from continuing operations of $3.86, up 24% versus last year.

· Core earnings per share were $4.05, up 5% from last year.

· Net sales were $84.2 billion, up 1% from last year.

· Organic sales grew 3% for the fiscal year.

The Peter Lynch Chart shows that Procter & Gamble currently appears to be overvalued:

1375464947044.png

Procter & Gamble has a market cap of $218.2 billion. Its shares are currently trading at around $80.94 with a P/E ratio of 20.30, a P/S ratio of 2.8 and a P/B ratio of 3.40. The company had an average annual earnings growth of 5.9% over the past 10 years.

GuruFocus rated Procter & Gamble the
business predictability rank of 2-star.

Sysco Corporation (SYY)

Over the past quarter, Hussman has increased his position in Sysco by 33333.3%. The guru purchased a total of 500,000 shares at an average price of $34.43 per share. Since this addition the share price has increased approximately 0.8%.

Hussman now owns 501,500 shares of Sysco, representing 0.09% of the company’s shares outstanding and 0.78% of his total portfolio. Hussman’s holding history of Sysco:



Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from the home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries.

Sysco’s historical revenue and net income:

1375465376936.png

The company is set to release its fourth quarter and fiscal 2013 earnings on August 12.

The Peter Lynch Chart shows that Sysco appears to be overvalued:

1375465415512.png

Sysco has a market cap of $20.54 billion. Its shares are currently trading at around $34.89 with a P/E ratio of 20.20, a P/S ratio of 0.50 and a P/B ratio of 4.10. The company also currently offers a dividend yield of 3.20%. The company has seen an annual average earnings growth of 5.8% over the past ten years.

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

There are 16 gurus that hold a position in Sysco. Click here to see their holding histories.

Johnson & Johnson (JNJ)

Hussman upped his position in Johnson & Johnson 9433.96% over the second quarter. The guru purchased 250,000 shares at an average price of $84.86 per share. Since this buy, the price per share is up 10.8% from Hussman’s average purchase price. John Hussman now owns a total of 252,650 shares of Johnson & Johnson, representing a small 0.01% of the company’s shares outstanding and 0.99% of his total portfolio.



Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the health care field. It is a holding company, which has more than 250 operating companies conducting business in virtually all countries of the world.

Johnson & Johnson’s historical revenue and net income:

1375465962774.png

The company’s second quarter financials reported:

· Sales of $17.9 billion, an increase 8.5% as compared to 2012.

· Net earnings of $3.8 billion, or $1.33 per diluted share.

· Increased its earnings guidance to $5.40 to $5.47 per share.

The Peter Lynch Chart shows that Johnson & Johnson appears to be overvalued:

1375469930174.png

Johnson & Johnson has a market cap of $262.88 billion. Its shares are currently being traded at around $93.86 with a P/E ratio of 25.40 and a P/S ratio of 3.90. The company had an annual average earnings growth of 6.2% over the past ten years.

GuruFocus rated Johnson & Johnson the
business predictability rank of 2.5-star.

There are 45 gurus that hold a position in JNJ. Click here to see their holding histories.

You can view more about John Hussman here. Also check out his current portfolio.

Try a free 7-day Premium Membership trial here.


Rating: 3.8/5 (4 votes)

Comments

sww
Sww - 11 months ago
Wow Hussman is buying 50 new stocks, last 3 years he has been bashing the market for all sort of reason the "half cycle" bs and all sort of things I didn't bother to understand" and now he is buying. As John Templeton famously said:

“Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”

Might want to start preparing for the coming crash, may be couple years away but it's never too early to prepare when a bear turn bullish.
vgm
Vgm - 11 months ago
50 new stocks in Q2? 238 in total?

"Diversity is a surrogate for ignorance." Buffett

Put those darts away and buy an index fund next time, John. You're almost there already. Oh, and don't buy at the top.

Just think of all the free time you'll have owning an index fund. Why, you'd be able to write a DAILY column!
SeaBud
SeaBud premium member - 11 months ago
Guess I'm not alone in my disdain for the articles and pseudo index fund this guy pumps out....

Only clicked to see the comments. Worth it!
pravchaw
Pravchaw premium member - 11 months ago
Can Gurufocus provide Hussman's performance data? Should this guy be a guru? if he is why not Marc Faber, David Rosenberg and the Professor Doom Nouriel Roubini. These guys all seem to operate on the principle of the "a stopped clock is right twice a day".

Never mind http://www.gurufocus.com/profile/John+Hussman

I guess he is too early - he missed the entire "cyclical" bull market since 2009.

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