The total fair value of Watsa’s long portfolio of 42 stocks is $1.6 billion, with 0% quarter-over-quarter turnover.
Watsa’s New Buys
K12 Inc. (NYSE:LRN)
Watsa bought 33,133 shares of K12 Inc. (NYSE:LRN), comprising 0.064% of his portfolio. The third quarter’s share price averaged $32; shares declined 35% from the average.
K12 is a technology-based educational company that helps students improve their potential by focusing on their individual needs.
K12 Inc. has a market cap of $860.700 million; its shares were traded at around $20.90 with a P/E ratio of 44.70 and P/S ratio of 1.00. K12 Inc. had an annual average earnings growth of 17.40% over the past five years.
In the company’s first quarter 2013 ended Sept. 30, 2013, K12 reported a 3.3% year-over-year revenue increase to $228.4 million, and a net loss of $5.0 million, or $0.13 per share, compared to net income of $4.4 million. It has cash on its balance sheet of $163.5 million, down 9.9% from the previous quarter.
Rue21 Inc. (NASDAQ:RUE)
Watsa purchased 21,000 shares of rue21 Inc. (NASDAQ:RUE), comprising 0.053% of his portfolio. In the third quarter the share price averaged $41; it has gained 1% from the average.
Rue21 is a trendy fashion retailer. The company was purchased by global private equity firm Apax Partners for $42 per share in cash on Oct. 10.
Onyx Pharmaceuticals Inc. (NASDAQ:ONXX)
Watsa purchased 4,500 shares of Onyx, comprising 0.035% of his portfolio. The third quarter share price averaged $127; the price has declined 2% from the average.
Onyx Pharmaceuticals focused on treatments for individuals with cancer. The company was purchased by Amgen on Oct. 1 through a tender offer for $125 per share in cash, or $10.4 billion.
Spreadtrum Communications Inc. (NASDAQ:SPRD)
Watsa purchased 16,500 shares of Spreadtrum Communications Inc. (NASDAQ:SPRD), comprising 0.031% of his portfolio. The share price average in the third quarter was $30; the price has increased 3% from the average.
China’s Spreadtrum is a fables semiconductor company making chipsets for smartphones and electronics with 2G, 3G and 4G wireless communications.
Spreadtrum Communications Inc. has a market cap of $1.46 billion; its shares were traded at around $30.53 with a P/E ratio of 17.70 and P/S ratio of 1.70. The dividend yield of Spreadtrum Communications Inc. stocks is 1.20%.
In the third quarter, Spreadtrum’s revenue increased 56.1% year over year to $293.3 million. GAAP net income increased 52.4% year over year to $35.7 million, or $0.71 per basic and diluted share. Spreadtrum had $139.7 million at quarter-end, declined from $201.7 million in the second quarter.
NewMarket Corporation (NYSE:NEU)
Watsa bought 750 shares of NewMarket Corporation, comprising 0.014% of his portfolio. The share price averaged $278 in the third quarter; it has increased 16% from the average.
NewMarket is a holding company owning businesses within the petroleum additives industry, such as Afton Chemical, Ethyl, New Market Services and NewMarket Development.
Newmarket Corporation has a market cap of $4.26 billion; its shares were traded at around $321.28 with a P/E ratio of 16.30 and P/S ratio of 1.90. The dividend yield of Newmarket Corporation stocks is 1.10%. Newmarket Corporation had an annual average earnings growth of 26.40% over the past 10 years. GuruFocus rated Newmarket Corporation the business predictability rank of 4-star.
For the third quarter, NewMarket reported $580.5 million in revenue, down from $551.2 million in the third quarter 2012. Net income increased to $78.9 million from $64.7 million in the same periods. Its quarter-end cash balance amounted to $247.27 million, increased from $89.13 million at year-end 2012.
BP PLC (NYSE:BP)
Watsa bought 5,000 shares of BP PLC (NYSE:BP), comprising 0.013% of shares outstanding. The price averaged $42 in the third quarter and has increased $12% from the average.
BP is a global oil and gas company making transportation fuel, lubricants and petrochemicals, with operations in over 80 countries.
BP PLC has a market cap of $147.34 billion; its shares were traded at around $46.92 with a P/E ratio of 6.30 and P/S ratio of 0.38. The dividend yield of BP PLC stocks is 4.70%.
For the third quarter, BP announced $98.2 billion in revenue, an increase from $94.4 billion for the third quarter 2012. Net income declined to $3.5 billion, or $1.11 per diluted share, from $5.28 billion, or $1.70 per diluted share for the second quarter 2012. Its cash balance at quarter-end stood at $30 billion, an increase from $16.4 billion a year previously.
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