The new positions Watsa established are Dex Media Inc. (DXM), Cooper Tire & Rubber Company (NYSE:CTB) and International Business Machines Corp. (NYSE:IBM).
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 (NYSE: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. (NYSE: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:
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