Prem Watsa, oftentimes dubbed the “Warren Buffett of Canada,” kept trading to a minimum in the second quarter of 2013. The founder of insurance conglomerate Fairfax Financial Holdings (FFH, Financial) reported last night that it purchased just three small new positions during the quarter, and had quarter-over-quarter turnover of 2%.
The new positions Watsa established are Dex Media Inc. (DXM, Financial), Cooper Tire & Rubber Company (CTB, Financial) and International Business Machines Corp. (IBM, Financial).
Dex Media Inc. (DXM)
Prem Watsa purchased 159,198 shares of Dex Media in the second quarter when the price averaged $18. It is his largest new position at 0.11% of his portfolio.
Dex Media is a marketing solutions company that merged with SuperMedia on April 30, 2013. Dex Media Inc. has a market cap of $168.1 million; its shares were traded at around $9.76.
In the second quarter, Dex Media reported $345 million in GAAP operating revenue and a GAAP net loss of $68 million. Pro forma free cash flow was $176 million for the first half, net of $20 million in integration costs and $30 million of merger transaction costs. The company holds $244 million in cash as of June 30.
Cooper Tire & Rubber Company (CTB)
Watsa purchased 7,000 shares of Cooper Tire & Rubber Company, a 0.0093% weighting in his portfolio. The price in the second quarter averaged $26 and has since increased 23%.
Cooper Tire & Rubber Company was incorporated in the state of Delaware in 1930 as the successor to a business originally founded in 1914. Cooper Tire & Rubber Company has a market cap of $2.13 billion; its shares were traded at around $32.60 with a P/E ratio of 8.70 and P/S ratio of 0.50. The dividend yield of Cooper Tire & Rubber Company stocks is 1.30%.
CTB revenue and earnings history:
The Peter Lynch chart suggests it is undervalued:
International Business Machines Corp. (IBM)
Watsa bought just 1,200 shares of IBM, representing 0.0092% of his portfolio. The price averaged $204 in the second quarter and declined 9% since.
IBM was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. IBM has a market cap of $203.69 billion; its shares were traded at around $185.95 with a P/E ratio of 13.20 and P/S ratio of 2.10. The dividend yield of IBM stocks is 1.90%. IBM had an annual average earnings growth of 12.2% over the past 10 years. GuruFocus rated IBM the business predictability rank of 5-star.
IBM revenue and earnings history:
The Peter Lynch chart suggests the company is undervalued:
See Prem Watsa’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Prem Watsa.
The new positions Watsa established are Dex Media Inc. (DXM, Financial), Cooper Tire & Rubber Company (CTB, Financial) and International Business Machines Corp. (IBM, Financial).
Dex Media Inc. (DXM)
Prem Watsa purchased 159,198 shares of Dex Media in the second quarter when the price averaged $18. It is his largest new position at 0.11% of his portfolio.
Dex Media is a marketing solutions company that merged with SuperMedia on April 30, 2013. Dex Media Inc. has a market cap of $168.1 million; its shares were traded at around $9.76.
In the second quarter, Dex Media reported $345 million in GAAP operating revenue and a GAAP net loss of $68 million. Pro forma free cash flow was $176 million for the first half, net of $20 million in integration costs and $30 million of merger transaction costs. The company holds $244 million in cash as of June 30.
Cooper Tire & Rubber Company (CTB)
Watsa purchased 7,000 shares of Cooper Tire & Rubber Company, a 0.0093% weighting in his portfolio. The price in the second quarter averaged $26 and has since increased 23%.
Cooper Tire & Rubber Company was incorporated in the state of Delaware in 1930 as the successor to a business originally founded in 1914. Cooper Tire & Rubber Company has a market cap of $2.13 billion; its shares were traded at around $32.60 with a P/E ratio of 8.70 and P/S ratio of 0.50. The dividend yield of Cooper Tire & Rubber Company stocks is 1.30%.
CTB revenue and earnings history:
The Peter Lynch chart suggests it is undervalued:
International Business Machines Corp. (IBM)
Watsa bought just 1,200 shares of IBM, representing 0.0092% of his portfolio. The price averaged $204 in the second quarter and declined 9% since.
IBM was incorporated in the State of New York on June 16, 1911, as the Computing-Tabulating-Recording Co. IBM has a market cap of $203.69 billion; its shares were traded at around $185.95 with a P/E ratio of 13.20 and P/S ratio of 2.10. The dividend yield of IBM stocks is 1.90%. IBM had an annual average earnings growth of 12.2% over the past 10 years. GuruFocus rated IBM the business predictability rank of 5-star.
IBM revenue and earnings history:
The Peter Lynch chart suggests the company is undervalued:
See Prem Watsa’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Prem Watsa.
