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Scott Black’s Top Five Stocks at Year End

January 09, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Scott Black is the chairman, president, chief investment officer and founder of Boston-based Delphi Management, and is often featured in Barron’s. Delphi Management’s investment philosophy states that they “only invest in companies that meet our internally developed set of rigorous quantitative criteria.” The fund also only invests in equity securities of US-listed companies, and takes only long positions.

Over the past quarter Guru Scott Black purchased 10 new stocks, bringing his total fourth quarter portfolio to 117 stocks valued at $916 million.

The following five companies are Scott Black’s top five stock holdings as of the close of the fourth quarter.

Berkshire Hathaway (BRK.B)

Black’s largest holding is in Berkshire Hathaway where the guru holds on to 202,432 shares of the company’s stock. His position in the company takes up 2.6% of his portfolio and 0.01% of the company’s shares outstanding.

Black made a slight reduction in his position in Berkshire Hathaway over the duration of the fourth quarter. The guru cut his stake -0.73% by selling 1,495 shares. He sold these shares in the third quarter price range of $111.37 to $118.56 per share. From the average price, the share price is up about 1.6%.

Scott Black’s historical holding history:

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Berkshire Hathaway is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

Berkshire Hathaway’s historical revenue and net income:

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The analysis on Berkshire Hathaway reports that the company’s price is near a 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

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

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Berkshire Hathaway has a market cap of $269.58 billion. Its shares are currently trading at around $115.34 with a P/E ratio of 14.40, a P/S ratio of 1.50 and a P/B ratio of 1.40. Berkshire Hathaway had an annual average earnings growth of 6.80% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 2.5-star.

Mylan (MYL)

Black’s second largest holding is in Mylan Inc where he currently holds on to 307,214 shares. His position in the company represents 1.5% of his total portfolio and 0.08% of the company’s shares outstanding.

During the fourth quarter Black reduced his position by -14.62%. The guru sold a total of 52,585 shares in the price range of $37.87 to $44.50, with an estimated average quarterly price of $41.10. Since then the price per share is up about 8.5%.

Scott Black’s holding history of Mylan as of the fourth quarter:

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Mylan and its subsidiaries make up a global pharmaceutical company that develops, licenses, manufactures, markets and distributes generic and branded generic pharmaceuticals, specialty pharmaceuticals and active pharmaceutical ingredients.

Mylan’s historical revenue and net income:

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The analysis on Mylan reports that the company’s price is near a 10-year high, its revenue has been in decline over the past five years, they have issued $363.26 million of debt over the past three years and its Piotroski F-Score is high, indicating that the company is in a healthy situation.

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

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Mylan has a market cap of $17.08 billion. Its shares are currently trading at around $44.60 with a P/E ratio of 29.20, a P/S ratio of 2.60 and a P/B ratio of 5.40. Mylan had an annual average earnings growth of 11.80% over the past five years.

Foot Locker (FL)

The guru’s third largest position is in Foot Locker where he holds on to 321,885 shares of the company’s stock.  His position in the company makes up for 1.5% of his total portfolio and 0.21% of the company’s shares outstanding. 

During the fourth quarter the guru upped his holdings by 2.54%.  He added 7,966 shares during the quarter at an estimated average quarterly price of $36.60 per share.  Since then the price per share has gone up about 12.2%.

Scott Black (Trades, Portfolio)’s historical holding history of Foot Locker:

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Foot Locker is a retailer of athletically inspired shoes and apparel, operating 3,369 mainly mall-based stores in the United States, Canada, Europe, Australia, and New Zealand. It operates in two reportable segments — Athletic Stores and Direct-to-Customers.

Foot Locker’s historical revenue and net income:

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The analysis reports that the company’s Piotroski F-Score is high, indicating a healthy situation, its dividend yield is near a 5-year low and its interest coverage is comfortable.  It also notes that the company’s price is at a 10-year high.

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

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Foot Locker has a market cap of $6.02 billion.  Its shares are currently trading at around $41.08 with a P/E ratio of 15.10, a P/S ratio of 1.00 and a P/B ratio of 2.50.  The company had an annual average earnings growth of 85.50% over the past five years.

Oracle Corporation (ORCL)

The guru’s fourth largest position is in Oracle where he maintains 350,636 shares of the company’s stock.  His position in the company makes up for 1.5% of his portfolio and 0.01% of the company’s shares outstanding.

Over the past quarter Scott Black (Trades, Portfolio) reduced his holdings -4.13% by selling 15,123 shares.  He bought these shares at the estimated average quarterly price of $34.38 per share. Since his buy the price per share has increased approximately 9.7%. 

Black’s historical holding history:

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Oracle provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It provides cloud services as well as software and hardware products to other cloud service providers, both public and private.

Oracle’s historical revenue and net income:

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The analysis on Oracle reports that the company’s revenue has slowed down over the past year, its price is near a 10-year high, its operating margin is expanding and its dividend yield is also near a 5-year high.

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

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Oracle Corporation has a market cap of $169.64 billion. Its shares are currently trading at around $37.72 with a P/E ratio of 16.10, a P/S ratio of 4.80 and a P/B ratio of 4.00. The company had an annual average earnings growth of 18.90% over the past ten years.

GuruFocus rated Oracle the business predictability rank of 4.5-star.

Comcast Corp (CMCSK)

The guru’s fifth largest holding is in Comcast where he holds on to 270,627 shares of the company’s stock. His position in Comcast represents 1.5% of his entire portfolio and 0.01% of the company’s shares outstanding.

During the fourth quarter Black decreased his stake in the company -6.54% by selling 18,944 shares. He sold these shares in the quarterly price range of $40.75 to $45.84, with an estimated average quarterly price of $43.00 to $49.88, with an estimated average quarterly price of $46.66. Since then the price per share has increased approximately 9.1%.

Cohen’s historical holding history:

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Comcast Corporation is a global media and technology company with two main businesses, Comcast Cable and NBCUniversal.

Comcast’s historical revenue and net income:

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The analysis on Comcast reports that the company’s revenue has slowed down over the past year, its dividend yield is near a three-year low and its price is near a 10-year high. The analysis also recognizes that the company’s operating margin is expanding.

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

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Comcast has a market cap of $133.1 billion. Its shares are currently trading at around $50.89 with a P/E ratio of 22.10, a P/S ratio of 2.10 and a P/B ratio of 2.80. The company had an annual average earnings growth of 22.50% over the past 10 years.

GuruFocus rated Comcast the business predictability rank of 3.5-star.

Check out Scott Black (Trades, Portfolio)’s fourth quarter portfolio here.

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