GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Seth Klarman's Low P/E Stocks

December 06, 2013 | About:

Holly LaFon

249 followers
The trademark of Seth Klarman’s investing style is low-priced stocks with a margin of safety. Therefore, it’s a good technique for investors to mine his portfolio for attractive investing ideas. A low P/E ratio often indicates an undervalued stock, and Klarman holds four companies trading at markedly low P/Es.

The Stocks

Central Pacific Financial Corporation (CPF)

Central Pacific Financial Corporation has a P/E ratio of 4.7, which is lower than 99% of the companies in its Global Banks industry. Klarman owns 779,715 shares of the company, but has reduced this over the past two quarters from the 1.8 million he originally purchased in the second quarter of 2011.

At the stock price of $19.47 the company trades at on Friday, Klarman has an approximate 32% gain on the holding from his average purchase price.

1386360768393.png

CPF is a Hawaii-based financial institution with about $4.7 billion in assets. Central Pacific Financial Corporation has a market cap of $818.300 million; its shares were traded at around $19.47 with a P/S ratio of 4.50. The dividend yield of Central Pacific Financial Corporation stocks is 0.80%.

BP PLC (BP)

BP PLC has a P/E ratio of 6.2, significantly below the Integrated Oil & Gas industry median of 11. Klarman holds 5,597,482 shares of the company, after slashing the stake by 13 million shares in the third quarter. With Friday’s share price around $46.83, he has an approximate 12% gain on the investment from his average purchase price.

1386362089563.png

BP PLC operates as an integrated oil and gas company and is the parent company of the BP group of companies. BP PLC has a market cap of $147.06 billion; its shares were traded at around $46.83 with a P/S ratio of 0.40. The dividend yield of Bp Plc stocks is 4.60%.

Chipmos Technologies Bermuda Ltd. (IMOS)

Chipmos Technologies Bermuda carries the P/E of 13, lower than 97% of its peers in the Global Semiconductor Equipment and Materials industry. Klarman recently started building a stake in this company: In the second quarter of 2013 he bought 2,763,530, and added 519,705 shares in the third quarter. The price is at $20.62 Friday, meaning Klarman’s gain on the position is already around 25% from his average buy price.

1386365086662.png

Chipmos Technologies Bermuda Ltd is a holding company, incorporated in Bermuda on August 2000. Chipmos Technologies Bermuda Ltd. has a market cap of $695.000 million; its shares were traded at around $20.62 with a P/S ratio of 0.90. The dividend yield of Chipmos Technologies Bermuda Ltd. stocks is 0.70%. Chipmos Technologies Bermuda Ltd. had an annual average earnings growth of 42.70% over the past five years.

Oracle Corporation (ORCL)

Oracle Corp.’s P/E ratio stands at 15.2, below 98% of fellow companies in the Global Software Infrastructure industry. Klarman is the owner of 2,386,890 Oracle shares, after trimming the stake significantly in recent quarters. Oracle trades around $35.37 per share on Friday, 27% higher than Klarman’s average buy price.

1386365432041.png

Oracle Corporation was incorporated in 2005 as a Delaware corporation and is the successor to operations originally begun in June 1977. Oracle Corporation has a market cap of $161.2 billion; its shares were traded at around $35.37 with a P/S ratio of 4.60. The dividend yield of Oracle Corporation stocks is 0.70%. Oracle Corporation had an annual average earnings growth of 18.90% over the past 10 years. GuruFocus rated Oracle Corporation the business predictability rank of 4.5-star.

For more Seth Klarman stocks, see his Baupost Group portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Seth Klarman.


Rating: 1.0/5 (3 votes)

Voters:

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide