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Leith Wheeler Canadian Equity’s Top Five Positions

September 06, 2013
Monica Wolfe

Monica Wolfe

133 followers
The Leith Wheeler Canadian Equity Fund released their second quarter portfolio yesterday. The most recent portfolio updated noted that as of the second quarter, Leith Wheeler held on to 45 stocks valued at $1.608 billion. The fund purchased five new stocks over the quarter and sold out of five as well.

The following five companies represent the fund’s top five positions as of the second quarter:

Toronto-Dominion Bank (TSX:TD)

Leith Wheeler Equity holds their largest position in Toronto-Dominion Bank where the fund owns 1,423,800 shares. Their position represents 7.5% of their total portfolio and 0.15% of the company’s shares outstanding.

During the second quarter the fund upped their stake in Toronto-Dominion Bank by 6.9%. They added a total of 91,900 shares in the second quarter price range of $80.00 to $84.75, with an estimated average price of $82.39 per share. Since then the share price has increased approximately 11.2%.

Leith Wheeler’s holding history as of the second quarter:

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Toronto-Dominion Bank and its subsidiaries provide Canadian Personal and Commercial Banking, U.S. Personal and Commercial Banking, Wealth Management, Insurance and Wholesale Banking.

Toronto-Dominion’s historical revenue and net income:

1378489306406.png

The company’s third quarter results highlighted:

· Adjusted Diluted EPS of $1.65, compared to $1.91 last year.

· Adjusted net income was $1,588 million, compared to $1,820 million last year.

· A loss of $48 million after tax, due to the impact of the Alberta flood on the loan portfolio.

· Year-to-date adjusted net income is $5,337 million, compared to $5,318 million.

The Peter Lynch Chart suggests that the company is currently undervalued:

1378489433083.png

Toronto-Dominion has a market cap of $84.48 billion. Its shares are currently trading at around $91.65 with a P/E ratio of 13.32, a P/S ratio of 3.55 and a P/B ratio of 1.79. The company’s dividend yield is currently at 3.45%. Toronto-Dominion had an annual average earnings growth of 6.4% over the past ten years.

GuruFocus rated Toronto-Dominion the business predictability rank of 2.5-star.

Royal Bank of Canada (TSX:RY)

Leith Wheeler Equity’s second largest position is in Royal Bank of Canada where it holds on to a total of 1,735,675 shares of the company’s stock. Their holdings make up for 6.6% of the total portfolio and 0.12% of the company’s shares outstanding.

During the second quarter Leith Wheeler upped their holdings by 19.2%. The fund purchased a total of 279,600 shares in the price range of $58.92 to $64.10, with an estimated average price range of $61.11. Since then the price per share has increased about 8.9%.

Leith Wheeler’s holding history as of the second quarter:

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Royal Bank of Canada is a financial services providers which include personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis.

Royal Bank of Canada’s historical revenue and net income:

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The company’s third quarter earnings release reported:

· Record net income of $2,304 million for the quarter, up $64 million or 3% from last year.

· Increased their quarterly dividend 6% to $0.67 per share.

· EPS of $1.52, up from $1.47

The Peter Lynch Chart suggests that the company is currently undervalued:

1378488784958.png

Royal Bank of Canada has a market cap of $95.86 billion. Its shares are currently trading at around $66.56 with a P/E ratio of 12.03, a P/S ratio of 3.49 and a P/B ratio of 2.27. Royal Bank has a dividend yield of 3.70%. The company has seen an annual average earnings growth of 6% over the past ten years.

GuruFocus rated Royal Bank of Canada the business predictability rank of 2.5-star.

Bank of Nova Scotia (TSX:BNS)

Leith Wheeler’s third largest holding is in the Bank of Nova Scotia. The equity fund holds on to a total of 1,805,015 shares, representing 6.3% of their portfolio and 0.15% of the company’s shares outstanding.

During the second quarter the fund increased their position in Bank of Nova Scotia by 16.92%. They purchased a total of 216,200 shares in the second quarter price range of $55.41 to $59.74, with an estimated price of $57.80. Since then the share price has increased about 3.4%.

Leith Wheeler’s holding history as of the second quarter:

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Bank of Nova Scotia is a full-service financial institution, which operates its business in four major business lines: Canadian Banking, International Banking, Global Wealth Management and Scotia Capital.

Bank of Nova Scotia’s historical revenue and net income:

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The company’s third quarter results highlighted:

· Net income of $1,768 million, compared to $2,051 million last year.

· Diluted earnings of $614 million, compared to $1.69 last year.

· Dividend increased two cents to $0.62 per share.

According to the Peter Lynch Chart Bank of Nova Scotia is currently undervalued:

1378486755551.png

Bank of Nova Scotia has a market cap of $71.93 billion. Its shares are currently trading at around $59.78 per share with a P/E ratio of 11.92, a P/S ratio of 3.41 and a P/B ratio of 1.78. Bank of Nova Scotia currently offers a dividend yield of 3.91%. The company had an annual average earnings growth of 7.2% over the past ten years.

GuruFocus rated Bank of Nova Scotia the business predictability rank of 4-star.

Saputo (TSX:SAP)

Leith Wheeler Equity’s fourth largest position is in Saputo. The fund holds on to 1,977,100 shares of the company’s stock, representing 1.01% of the company’s shares outstanding as well as 5.9% of their total portfolio.

During the second quarter Leith Wheeler upped their stake in Saputo by 13.5% the fund purchased a total of 235,100 shares in the price range of $47.16 to $53.72 per share. Since then the price per share has dropped about -4.5%.

Leith Wheeler’s holding history as of the second quarter:

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Saputo produces, markets and distributes dairy products in Canada, the U.S. and Argentina as well as bakery products in Canada. Its segments include Dairy Products and Grocery Products.

Saputo’s historical revenue and net income:

1378487320139.png

The company’s most recent financial results report:

· Net earnings at $136.7 million, up 12.2%

· EBITDA was $242.1 million, up 19.3%

· Revenues equaled $2.174 billion, up 28%

· Fully diluted EPS was $0.69, up 14.8%

The Peter Lynch Chart suggests that Saputo is currently overvalued:

1378487896283.png

Saputo has a market cap of $9.33 billion. Its shares are currently trading at around $47.76 with a P/E ratio of 25.32, a P/S ratio of 1.38 and a P/B ratio of 4.08. The company had an annual average earnings growth of 10.7% over the past ten years.

Canadian National Railway (TSX:CNR)

Leith Wheeler’s fifth largest position is in Canadian National Railway. The fund holds on to 879,200 shares of the company’s stock which makes up for 5.6% of their total portfolio and 0.21% of the company’s shares outstanding.

During the second quarter Leith Wheeler increased their position by 12.39%. The fund added a total of 96,900 shares in the second quarter price range of $97.29 to $105.98, with an estimated average price of $100.9. Since then the price has dropped a minor -0.1%.

Leith Wheeler’s holding history as of the second quarter:

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Canadian National Railway Co together with its wholly-owned subsidiaries is engaged in the rail and related transportation business.

Canadian National Railway’s historical revenue and net income:

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· The company’s 2013Q2 results reported:

· Adjusted net income of C$704 million

· Adjusted diluted EPS rose 11% to C$1.66

· Revenues increased 5% to C$2,666 million.

· Operating income increased 6% to C$1,042 million.

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

1378490193433.png

Canadian National Railway has a market cap of $42.37 billion. Its shares are currently trading at around $100.78 with a P/E ratio of 17.04, a P/S ratio of 4.27 and a P/B ratio of 3.70. The company had an annual average earnings growth of 9.5% over the past ten years.

GuruFocus rated Canadian National Railway the business predictability rank of 4-star.

Check out the Leith Wheeler Canadian Equity Fund’s second quarter portfolio here.

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Rating: 5.0/5 (2 votes)

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