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Top Guru-Held Central and South America-Based Companies

October 01, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which Central and South American-based companies are held by the most gurus. As of the second quarter, the following five stocks from companies based out of South or Central America are held by the largest number of gurus.

Grupo Televisa S.A.B. (
TV)

As of the close of the second quarter there were 14 guru owners of Grupo Televisa. During the past quarter there were 7 gurus buying shares of TV and there were 6 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 6.60%.

The top three guru shareholders of Grupo Televisa:

1. Jean-Marie Eveillard: 32,483,639 shares, representing 5.66% of the company’s shares outstanding and 2.5% of his total portfolio.

2. Dodge & Cox: 21,249,392 shares, representing 3.7% of the company’s shares outstanding and 0.63% of the fund’s total portfolio.

3. Bill Gates: 16,979,103 shares, representing 2.94% of the company’s shares outstanding and 2.4% of his total portfolio.

Grupo Televisa S.A.B. is a media company focused in Spanish-speaking countries. It operates four broadcast channels in Mexico and has network coverage through affiliated stations throughout the country.

Grupo Televisa’s historical revenue and net income:

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The company’s second quarter results released in Aug. reported:

· Consolidated net sales and operating segment income grew by 6.4% and 8.5% respectively.

· Royalties from Univision reached $70.5 million, growing 9.9%.

· Record revenues in Sky reaching 4 billion pesos.

· Net income attributable to stockholders reached 1.8 billion pesos, a 30.7% increase from last year.

The company also reported recently that they had invested in the debt of Tenedora Ares which is approximately Ps. 7,000 million in convertible debt instruments.

The analysis on Grupo Televisa reports that the company’s revenue has slowed over the past year, its price is nearing a 10-year high and its Piotroski F-Score is currently high, representing a very healthy situation.

Grupo Televisa has a market cap of $16.29 billion. Its shares are currently trading at around $28.39 with a P/E ratio of 31.70 and a P/S ratio of 3.90. The company had an annual average earnings growth of 48.5% over the past ten years.

GuruFocus rated Grupo Televisa the business predictability rank of 2.5-star.

Petroleo Brasileiro SA Petrobras (PBR)

As of the close of the second quarter there were 12 guru owners of Petroleo Brasileiro. During the past quarter there were 6 gurus buying shares of PBR and there were 5 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 6.54%.

The top three guru shareholders of Petroleo Brasileiro SA Petrobras:

1. Brian Rogers: 8,000,000 shares, representing 0.12% of the company’s shares outstanding and 0.43% of his total portfolio.

2. Steven Cohen: 4,205,681 shares, representing 0.06% of the company’s shares outstanding and 0.31% of his total portfolio.

3. RS Investment Management: 661,593 shares, representing 0.01% of the company’s shares outstanding and 0.06% of the fund’s total assets managed.

Petrobras is an integrated oil and gas company in Brazil and in Latin America who is the largest supplier of crude oil and oil products. Its activities comprise of five business segments: Exploration and Production, Supply, Distribution, Gas and Energy and International.

Petrobras’ historical revenue and net income:

1380638016406.png

The company announced this morning that it had approved the disposition of 100% of the issue shares of Innova SA to Videolar SA for the amount of R$870 million. The company also approved the merger of Comperj Participacoes SA into Petrobras.

Petrobras also announced that in August the company’s Brazil operations increased their oil output 1.3% from July of this year.

Petrobras’ CEO, Graca Foster, was voted the best CEO in Latin America in Institutional Investor magazine’s 2013 oil, gas and petrochemical industry ranking. The company was also chosen as the company with the best investor relations in the ‘Best Investor Relations Company’ list.

The Peter Lynch Chart suggests that Petrobras is currently undervalued:

1380644639153.png

Petroleo Brasileiro SA Petrobras has a market cap of $101.88 billion. Its shares are currently trading at around $15.62 with a P/E ratio of 7.70, a P/B ratio of 0.70 and a P/S ratio of 0.70.

Cemex S.A.B. de C.V. (CX)

As of the close of the second quarter there were 11 guru owners of Cemex. During the past quarter there were 5 gurus buying shares of CX and there were 9 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 9.46%.

The top three guru shareholders of Cemex:

1. Andreas Halvorsen: 63,547,228 shares, representing 5.81% of the company’s shares outstanding and 3.7% of his total portfolio.

2. Mason Hawkins: 41,227,246 shares, representing 3.77% of the company’s shares outstanding and 2.1% of his total assets managed

3. Charles Brandes: 15,816,850 shares, representing 1.45% of the company’s shares outstanding and 2.1% of his total portfolio.

Cemex is a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials.

Cemex’s historical revenue and net income:

1380639693825.png

This past week Cemex announced that it would purchased up to €150 million of the outstanding 9.625% senior secured notes due 2017.

The company also announced its intent and game plan to improve its portfolio in Europe. Cemex will acquire Holcim’s operations in the Czech Republic, it will divest its assets in the western part of Germany to Holcim and the two companies will combine forces in Spain. Holcim will also pay Cemex €70 million Euros in cash. Transactions of these interactions are expected to draw synergies that will result in a recurring improvement in Cemex’s EBITDA of about $20 million to $30 million.

The analysis on Cemex reports that the company’s revenue has been in decline over the past five years, its price is nearing a 5-year high and its P/S ratio is nearing a 1-year low.

Cemex has a market cap of $12.47 billion. Its shares are currently trading at around $11.40 with a P/S ratio of 0.40.

Fomento Economico Mexicano SAB de CV (FMX)

As of the close of the second quarter there were 11 guru owners of Fomento Economico Mexicano (FEMSA). During the past quarter there were 5 gurus buying shares of FMX and there were 7 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 2.68%.

The top three guru shareholders of Fomento Economico Mexicano:

1. Lee Ainslie: 1,270,372 shares, representing 0.36% of the company’s shares outstanding and 1.8% of his total portfolio.

2. Pioneer Investments: 537,490 shares, representing 0.15% of the company’s shares outstanding and 0.23% of the fund’s total assets managed.

3. Jim Simons: 367,500 shares, representing 0.1% of the company’s shares outstanding and 0.1% of his total portfolio.

The company is a beverage company. It conducts its operations through principal holding companies such as Coca-Cola FEMSA, FEMSA Comercio and CB Equity. It operates in Mexico, Central America, Colombia, Venezuela, Brazil and Argentina.

Fomento Economico Mexicano’s historical revenue and net income:

1380640523019.png

Coca-Cola FEMSA was selected as a member of the Dow Jones Sustainability Indices on Sept. 17. Also recently Coca-Cola FEMSA reached an agreement to acquire Spaipa SA Industria Brasileira de Bebidas in Brazil. This comes almost immediately after the company closed their acquisition of Companhia Fluminense de Refrigerantes in Brazil.

The analysis on FEMSA reports that the company’s revenue has slowed down over the past year, it’s dividend yield is nearing a 3-year low and its asset growth is currently faster than its revenue growth.

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

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Fomento Economico Mexicano has a market cap of $35.36 billion. Its shares are currently trading at around $98.81 with a P/E ratio of 25.10 and a P/S ratio of 2.10. The company had an annual average earnings growth of 8.1% over the past ten years.

GuruFocus rated FEMSA the business predictability rank of 4-star.

Vale SA (VALE)

As of the close of the second quarter there were 9 guru owners of Vale. During the past quarter there were 5 gurus buying shares of VALE and there were 3 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 0.91%.

The top three guru shareholders of Vale:

1. Jeremy Grantham: 13,745,351 shares, representing 0.26% of the company’s shares outstanding and 0.47% of his total portfolio.

2. Jim Simons: 3,873,300 shares, representing 0.07% of the company’s shares outstanding and 0.13% of his total portfolio.

3. Ray Dalio: 539,900 shares, representing 0.01% of the company’s shares outstanding and 0.06% of his total portfolio.

Vale S.A. is a metals and mining company. The Company is a producer of iron ore and iron ore pellets and the producer of nickel and kaolin. It is also one of the producers of manganese ore and ferroalloys.

Vale’s historical revenue and net income:

1380640684288.png

Vale recently reached an agreement to sell its stake in VLI. The company will be selling approximately 26% of their stake in VLI, an integrated general cargo logistics company, to Brookfield Asset Management. They also signed agreements to transfer 20% of the total capital of VLI to Mitsui & Co. and 15.9% to the Investment Fund of the Fundo de Garantia do Tempo de Servico.

The analysis on Vale reports that the company has issued $7 billion over the past three years, its revenue has slowed over the past year and it has a poor stock buyback track record.

Vale has a market cap of $81.03 billion. Its shares are currently trading at around $15.51 with a P/E ratio of 33.40, a P/S ratio of 1.70 and a P/B ratio of 1.70. Vale had an annual average earnings growth of 31.3% over the past ten years.

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

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GuruFocus rated Vale the business predictability rank of 2-star.

You can check out other top held sectors of the market by using the Aggregated Screener here.

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Rating: 2.7/5 (3 votes)

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