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Scott Black’s Barron’s Roundtable Stock Picks Report Card

January 23, 2014 | About:
Monica Wolfe

Monica Wolfe

129 followers
Every year Barron’s gets its Roundtable team together and they discuss stock picks and the status of the economy in general.  Guru Scott Black (Trades, Portfolio) is a member of Barron’s Roundtable team, and the following stocks are his stock picks for 2013 and how they ended up doing for the year. 

Qualcomm (QCOM)

Last year Scott Black (Trades, Portfolio) recommended to Barron’s the stock Qualcomm.  On Jan. 11, 2013, when Black recommended the stock, the company was trading at around $64.90 per share and at year-end the company was up 14.40% to $74.25 per share.  For 2013 Qualcomm delivered a total return of 16.40%.

At year end Black held on to 177,268 shares of the company’s stock, representing 1.4% of his total portfolio as well as 0.01% of the company’s shares outstanding.  During the fourth quarter Black reduced his holdings -4.01% by selling a total of 7,414 shares of the stock.

From Qualcomm’s estimated average fourth quarter price of $70.53 per share, the price per share has increased approximately 7.3%.

Black’s holding history as of the fourth quarter:

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Qualcomm develops, designs, manufactures and markets digital wireless telecommunications products and services. The company is a developer and supplier of CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products to wireless device and infrastructure manufacturers.

Qualcomm’s historical revenue and net income:

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The company declared a dividend today of $0.35 per share, payable on March 26, 2014, to shareholders of the record at the close of business March 5, 2014. 

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Qualcomm also recently announced that Steve Mollenkopf would be taking the reigns as President and CEO effective March 4, 2014.  Mollenkopf will replace Dr. Paul E. Jacobs, who will remain the company’s Executive Chairman.

There are three gurus reporting a stake in Qualcomm as of the close of the fourth quarter, and as of the close of the third quarter there were 26 gurus that held a position in the company.  Check out their holdings here.

Qualcomm has a market cap of $127.86 billion.  Its shares are currently trading at around $75.68 with a P/E ratio of 19.20, a P/S ratio of 5.30 and a P/B ratio of 3.60.  The company had an annual average earnings growth of 13.80% over the past ten years.

GuruFocus rated Qualcomm the business predictability rank of 5-star.  

McKesson (MCK)

Another one of Black’s recommendations was for the company McKesson.  At the time of the 2013 Roundtable article McKesson was trading at $101.80, and as of year-end the price per share has increased 59.7% to $161.40 per share. For 2013 McKesson delivered a total return of 60.5%.

As of Dec. 31, Black held on to 68,116 shares of McKesson stock, representing 0.03% of the company’s shares outstanding as well as 1.2% of his total assets managed. During the fourth quarter Black reduced his position -17.78% by selling 14,728 shares of the company’s stock. 

From McKesson’s estimated average fourth quarter price of $153.59, the price per share has increased approximately 10.5%.

Black’s historical holding history as of the fourth quarter:

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McKesson Corporation delivers medicines, pharmaceutical supplies, information and care management products and services designed to reduce costs and improve quality across the healthcare industry.  The company is currently ranked 14th on the Fortune 500. 

McKesson’s historical revenue and earnings growth:

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On Jan. 21, the company announced its first changes to their corporate governance as well as to their compensation packages.  The company’s new changes can be found here.

McKesson is set to release its fiscal 2014 third quarter results on Jan. 30, 2014. 

The company also recently announced that it was unsuccessful in reaching the 75% completion condition in its offer for the outstanding shares and convertible bonds of Celesio. 

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

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As of the close of the third quarter there were 13 gurus maintaining a position in McKesson.  Check out their holding histories here.

McKesson has a market cap of $39.98 billion.  Its shares are currently trading at around $169.68 with a P/E ratio of 28.70, a P/S ratio of 0.30 and a P/B ratio of 4.80.  McKesson had an annual average earnings of 23.30% over the past ten years.

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

Ensco (ESV)

Black recommended the company Ensco for Barron’s Roundtable last year.  On Jan. 11, 2013, the company was trading at $60.88 per share and at year-end the company’s price had dropped approximately -6.1% to $57.18 per share.  For the year Ensco delivered a total return of -2.4%.

Scott Black (Trades, Portfolio) held on to 174,506 shares of ESV as of the end of the year, representing 1.1% of his total portfolio as well as 0.07% of the company’s shares outstanding.  During the fourth quarter the guru upped his stake 1.08% by purchasing 1,865 shares of the company’s stock. 

From the estimated average fourth quarter price of $57.72 per share, Ensco’s price has dropped approximately -4.7%.

Black’s holding history of Ensco as of the fourth quarter:

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Ensco PLC is a global offshore contract drilling company. It is a provider of offshore contract drilling services to the international oil and gas industry.

Ensco’s historical revenue and net income:

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The company will release its fourth quarter and full-year 2013 financial results on Feb. 20, 2014. 

Over the past quarter Ensco reported that they current CEO Dan Rabun would be retiring.  The CEO will be retiring after eight years of service and will continue to serve as Chairman, President and CEO until the Board has completed the succession and a new CEO has been appointed.  No CEO has been appointed as of yet.

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

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As of the third quarter there were 13 gurus holding on to a position in Ensco.  Check out their positions here.

Ensco has a market cap of $12.85 billion.  Its shares are currently trading at around $55.01 with a P/E ratio of 10.00, a P/S ratio of 2.67 and a P/B ratio of 1.00.  The dividend yield on Ensco stocks is at 4.09%.  The company had an annual average earnings growth of 16.00% over the past ten years.

Medical Properties Trust (MPW)

Another one of Black’s favored stocks of the past year was in Medical Properties Trust.  The price of the company was at $12.66 per share on Jan. 11, 2013, and as of year-end the company’s price was trading down -3.5% to $12.22 per share.  For the year Medical Properties Trust delivered total returns of 2.9%.

As of the fourth quarter Black held on to 127,015 shares of Medical Properties Trust, representing 0.17% of his total portfolio and 0.08% of the company’s shares outstanding. During the fourth quarter the guru cut his position -2.43% by selling 3,162 shares of the company’s stock.

From the estimated average quarterly price of $12.77 per share, the price has increased approximately 0.3%.

Black’s holding history as of Q4:

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Medical Properties Trust is a self-advised REIT that acquires, develops, leases and makes other investments in healthcare facilities providing state-of-the-art healthcare services. It leases its facilities to healthcare operators pursuant to long-term net leases, which require the tenant to bear costs associated with the property.

Medical Properties Trust’s historical revenue and earnings growth:

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Most recently, in December, Medical Properties completed the acquisition of eleven rehabilitation facilities in Germany.  The company financed the acquisition with the proceeds of €200 million senior notes 2020 that were priced with a 5.75% coupon in Oct. 2013.

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

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Medical Properties Trust has a market cap of $2.07 billion.  Its shares are currently trading at around $12.80 with a P/E ratio of 17.50, a P/S ratio of 8.00 and a P/B ratio of 1.40.  The dividend of MPW stocks is currently at around 6.30%.  Medical Properties Trust had an annual average earnings growth of 3.30% over the past five years.

Titan International (TWI)

The last stock recommended by Black at last year’s Roundtable was Titan International.  Titan’s price was sitting at $23.48 per share on Jan. 11 and at year-end the company was trading down -23.4% to $17.98 per share.  At year end Titan International had a -23.3% total return for 2013.

Scott Black (Trades, Portfolio) sold out of his holdings in Titan International during the third quarter of 2013.

Black’s holding history of Titan International:

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Titan International is a holding company that owns subsidiaries that supply wheels, tires and assemblies primarily for the off-highway equipment used in agricultural, earthmoving/construction and consumer applications.

Titan International’s historical revenue and net income:

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The company most recently announced that one of its directors, Mitchell Quain, would be retiring from the company’s international Board of Directors.  Quain has been with the company for over 17 years, and is to be replaced by Gary Cowger, the former chairman and CEO of GLC Ventures.

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

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As of the close of the third quarter there were nine gurus holding a position in TWI.  Check out their positions here.

Titan International has a market cap of $1.01 billion.  Its shares are currently trading at around $18.89 with a P/E ratio of 24.30, a P/S ratio of 0.50 and a P/B ratio of 1.40.  The company had an annual average earnings growth of 11.20% over the past ten years.

GuruFocus rated Titan the business predictability rank of 3-star.

Check out the Barron’s article here.

You can view Black’s entire fourth quarter portfolio here.

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Rating: 3.8/5 (4 votes)

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