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Household Brands at Fair or Undervalued Prices

August 09, 2013 | About:
Sally Jones

Sally Jones

49 followers
Many stocks in the consumer cyclic sector represent everyday household brands and where we typically go on Saturday to shop. The GuruFocus Buffett-Munger Screener highlights these name companies with high predictability and EBIDTA growth rates. Here are some highlights from second quarter trading.

Bed Bath & Beyond Inc. (BBBY)

EBITDA: 8.1% 12-month Growth Rate

Rated with 5-star predictability, Bed Bath & Beyond Inc. (BBBY) was founded in 1971. The company is up 21% over 12 months, with a market cap of $16.55 billion; its shares trade at around $76.02 with a P/E ratio of 16.50 and P/S ratio of 1.50.

Historical pricing:

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Bed Bath & Beyond sells an assortment of domestics merchandise and home furnishings. The company and its subsidiaries make up a chain of retail stores, operating under the names Bed Bath & Beyond, Christmas Tree Shops, Harmon Discount, Harmon Face Values and buybuyBaby. The company is also a partner in a joint venture which operates two stores, named Home & More, in the Mexico City market.

Guru Action: As of June 30, 2013, top Guru shareholder Chris Davis, holds 22,140060 shares with a phenomenal trading history of gains in every quarter since the second quarter of 2006. In the second quarter, he sold 1,208,936 shares at an average price of $68.13 for a gain of 11.6%. Davis has averaged a gain of 108% on 25,802,850 shares bought at an average price of $36.50.

BBBY is broadly held by billionaires.



Ross Stores Inc. (ROST)

EBITDA: 21.6% 12-month Growth Rate

Rated with 4-star predictability, Ross Stores Inc. is up 23% since January, with a market cap of $14.65 billion; its shares trade at around $67.01 with a P/E ratio of 18.20 and P/S ratio of 1.50.

Historical pricing:

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Ross Stores Inc. and its subsidiaries operate two brands of off-price retail apparel and home fashion stores. At the end of January 2012, the company operated a total of 1,125 stores, with 1,037 Ross Dress for Less stores with locations in 29 states, the District of Columbia, and Guam; the company’s 88 dd's Discounts stores are located in seven states. Both brands target value-conscious women and men between the ages of 18 and 54.

Guru Action: As of June 30, 2013, Scott Black holds 177,583 shares with another remarkable trading history of gains in every quarter but one since the fourth quarter of 2009. In the second quarter, he bought 386,550 shares at an average price of $28.06 for a gain of 4.6%. Black has averaged a gain of 139% on 386,550 shares bought at an average price of $28.06 per share.



Here’s more Guru trading action.



Fossil Group Inc. (FOSL)

EBITDA: 14.8% 12-month Growth Rate

Rated with 4.5-star predictability, Fossil Group Inc. is up 39% over 12 months. The company has a market cap of $7.08 billion; its shares trade at around $120.60 with a P/E ratio of 20.20 and P/S ratio of 2.50.

Historical pricing:

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Fossil Inc. was formed in 1991 and is the successor to a Texas corporation formed in 1984. Fossil is a marketing and distribution company that specializes in consumer fashion accessories. The company’s main offerings include an extensive line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, shoes, soft accessories and clothing.

Guru Action: As of June 30, 2013, Columbia Wanger made a gain of 19.3% on 872,645 shares bought at an average price of $101.05.

Steven Cohen is the top Guru shareholder with 1.87% of shares outstanding, a trading history only in the green. For the last three quarters of 2003, Cohen had gains of 774.5%, 579.4% and 557.2%, respectively.



Here’s more Guru Trading action.

Watchers International Inc. (WTW)

EBITDA: 35.1% 12-month Growth Rate

Rated with 4-star predictability, WTW is down 22% over 12 months. The company has a market cap of $2.07 billion; its shares trade at around $37.06 with a P/E ratio of 8.70 and P/S ratio of 1.17.

Historical pricing:

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Founded in 1974, Weight Watchers International Inc. is a global-branded consumer company and a provider of weight management services, operating globally through a network of company-owned and franchise operations.

Guru Action: As of June 30, 2013, Chuck Royce, one of seven Guru stakeholders, lost 15.1% on 23,500 shares at an average price of $43.61. Royce’s trading history shows three quarters of losses.

In the fourth quarter of 2012 and the first quarter of 2013, top Guru stakeholder Third Avenue Management shows an average loss of 30% on 500,920 shares bought at an average price of $53.05.

Here’s more Guru Trading action.

Have a look at the GuruFocus Buffett-Munger Screener for rapid research results.



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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: 3.4/5 (5 votes)

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