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Charles Brandes Top Second Quarter Portfolio Changes

Monica Wolfe

Monica Wolfe

131 followers
A disciple of value investing Guru Benjamin Graham, Charles Brandes founded Brandes Investment Partners in 1974. Brandes' funds continue to perform well, with both the Global Equity fund and the International Equity fund producing double-digit returns over the past year.

Over the second quarter, Brandes bought 11 new stocks bringing his total number of stocks held to 169. The guru’s portfolio is currently valued at over $7.9 billion.



The following companies represent the six stocks that Brandes made the largest change in holdings to during the second quarter.

Increases

Itron (ITRI)

Charles Brandes made his largest increase of the second quarter in the computer hardware company, Itron. Brandes purchased 203,801 shares of Itron at an average price of $42.64. Since his most recent addition, the share price has dropped approximately -6.4%.

Brandes now owns 218,721 shares of Itron, representing 0.56% of the company’s shares outstanding and 0.12% of his total portfolio. Brandes’ holding history as of the first quarter:



Itron is a global technology company. The company builds solutions that help utilities measure, monitor and manage energy and water.

Itron’s historical revenue and net income:

1376075395073.png

The company’s second quarter results:

· Revenue of $482 million.

· GAAP diluted net earnings of $0.31 per share.

· Non-GAAP diluted net earnings of $0.58 per share.

· EBITDA of $45 million.

· Quarterly bookings of $515 million.

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

1376075531046.png

Itron has a market cap of $1.58 billion. Its shares are currently trading at around $40.37 with a P/E ratio of 24.20, a P/S ratio of 0.80 and a P/B ratio of 1.80.

Enzon Pharmaceuticals (ENZN)

Brandes upped his stake in Enzon Pharmaceuticals 184.52% over the duration of the second quarter. The guru purchased a total of 665,858 shares of the company’s stock at an average price of $2.93 per share. Since this addition the share price has plummeted -37.2%.

Brandes now owns 1,026,723 shares of Enzon Pharmaceuticals, representing 2.35% of the company’s shares outstanding and 0.026% of his total portfolio. Brandes’ holding history of Enzon:



Enzon Pharmaceuticals is a biopharmaceutical company is engaged in developing, manufacturing and commercializing important medicines for patients with cancer and other life-threatening conditions.

Enzon Pharmaceuticals’ historical revenue and net income:

1376076318034.png

In December 2012, the company reported:

The Board of Directors retained Lazard Frères & Co. LLC to act as financial advisor in a review of the possible sale or disposition of one or more corporate assets or a sale of the Company and that its Board of Directors established a special committee to oversee the sale review process. In connection with the sale review process, Enzon has substantially suspended all clinical development activities with a goal of conserving capital and maximizing value returned to its stockholders. The sale review process entails numerous significant risks and uncertainties.

Enzon Pharmaceuticals has a market cap of $80 million. Its shares are trading at around $1.83 with a P/E ratio of 15.40, a P/S ratio of 2.40 and a P/B ratio of 1.00.

China Mobile (CHL)

During the second quarter, Brandes increased his position in China Mobile by 136.28%. The guru purchased a total of 242,371 shares at an average price of $52.86 per share. Since his buy, the price per share has increased approximately 1.8%.

Brandes currently holds 420,222 shares of China Mobile, representing 0.01% of the company’s shares outstanding and 0.27% of his total portfolio. Brandes’ holding history of China Mobile as of June 30:



The company provides a range of mobile telecommunications services in all 31 provinces, autonomous regions and directly-administered municipalities in Mainland China as well as in Hong Kong.

China Mobile’s historical revenue and net income:

1376077041096.png

The company is set to release its second quarter results on Aug. 15.

The Peter Lynch Chart shows that China Mobile is currently undervalued:

1376077082928.png

China Mobile has a market cap of $214.71 billion. Its shares are trading at around $53.41 with a P/E ratio of 10.20, a P/S ratio of 2.40 and a P/B ratio of 1.80. The dividend yield of China Mobile stocks is 3.70%. The company had an annual average earnings growth of 11.5% over the past 10 years.

GuruFocus rated China Mobile the business predictability rank of 3-star.

Reductions

Boston Scientific (BSX)

Charles Brandes made a significant cut in his holdings of Boston Scientific over the second quarter. The guru cut his position -96.31% by selling a total of 16,285,728 shares. He sold these shares at an average price of $8.48 per share. Since this sell, the share price has increased approximately 34.7%.

Brandes now holds a much smaller 624,088 shares of Boston Scientific, representing 0.05% of the company’s shares outstanding and 0.072% of his total portfolio. Brandes’ holding history of Boston Scientific as of the second quarter:



Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices that are used in a range of interventional medical specialties.

Boston Scientific’s historical revenue and net income:

1376077839927.png

Boston Scientific has a market cap of $15.29 billion. Its shares are trading at around $11.33 with a P/E ratio of 16.80, a P/S ratio of 2.20 and a P/B ratio of 2.50.

People’s United Financial (PBCT)

During the second quarter Brandes reduced his position in People’s United by -78.97%. The guru sold a total of 338,043 shares at an average price of $13.64 per share. Since his reduction, the price per share has increased approximately 9.2%.

Brandes currently holds on to 90,018 shares of People’s United Financial, representing 0.03% of the company’s shares outstanding and 0.016% of his total portfolio. Brandes’ holding history as of the second quarter:



People’s United is a savings and loan holding company incorporated under the state laws of Delaware and the holding company for People's United Bank, a federally-chartered stock savings bank headquartered in Bridgeport, Connecticut.

People’s United’s historical revenue and net income:

1376078147030.png

The Peter Lynch Chart shows that People’s United appears to be overvalued:

1376078167800.png

People’s United Financial has a market cap of $4.9 billion. Its shares are currently traded at around $14.82 with a P/E ratio of 20.50, a P/S ratio of 4.00 and a P/B ratio of 1.10. The company had an annual average earnings growth of 21.3% over the past 10 years.

GuruFocus rated People’s United the business predictability rank of 2-star.

Makita (MKTAY)

Over the duration of the second quarter, Brandes decreased his position in Makita by -66.44%. The guru sold a total of 12,750 shares at an average price of $54.30 per share. Since his sell, the price per share has dropped approximately -5.8%.

Brandes now maintains 6,440 shares, representing 0.0044% of his total portfolio. Brandes’ holding history as of the second quarter:



Makita and its subsidiaries' main products include drills, rotary hammers, demolition hammers, grinders and cordless impact drivers. The Company and its subsidiaries also manufacture and sell pneumatic tools and garden tools.

Makita’s historical revenue and net income:

1376078268574.png

The Peter Lynch Chart shows that the company is currently overvalued:

1376078299020.png

Makita has a market cap of $6.94 billion. Its shares are trading at around $51.14 with a P/E ratio of 21.40, a P/S ratio of 2.30 and a P/B ratio of 2.00. The company had an annual average earnings growth of 10.6% over the past 10 years.

You can view Charles Brandes’ complete second quarter portfolio here.

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Rating: 3.7/5 (3 votes)

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