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Spanish Guru Francisco Garcia Paramés’ Top Five Stocks

Monica Wolfe

Monica Wolfe

99 followers

One of our newest international gurus, Francisco Garcia Paramés, reported his fourth quarter portfolio changes on Friday.

Paramés is a self-taught value investor from Madrid, Spain, who strictly adheres to the value management of Graham, Buffett and Lynch. The guru is the chief investment officer of Bestinver Asset Management and has often been referred to as the “Spanish Warren Buffett.”

During the fourth quarter the Spanish guru sold out of three companies and bought into seven new ones. As of the close of the fourth quarter, Paramés’ portfolio contained 104 international stocks valued at over $1.5 billion.

Bayerische Motoren Werke (XTER:BMW3)

Francisco Paramés’ largest position is in the German auto maker Bayerische Motoren Werke (XTER:BMW3) where the guru holds on to 1,784,764 shares of the company’s stock. His position in BMW represents 7.3% of his total portfolio.

BMW was Paramés’ largest position last quarter, but over the fourth quarter he cut his stake by a slight -1.17%. The guru sold a total of 21,057 shares in the price range of €60.54 to €64.65, with an estimated average quarterly price of €62.15. Since then the price per share has dropped approximately -2.6%.

Paramés has held a position in BMW since 2012Q2 and has seen average gains of around 41%. The guru’s historical holding history as of the close of the fourth quarter:

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Bayerische Motoren Werke, or BMW, manufactures automobiles and motorcycles worldwide. The company's activities are divided into three segments: Automobiles, Motorcycles and Financial Services.

BMW3’s historical revenue and net income:

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The analysis on BMW reports that the company’s operating margin expanding, its revenue has been in decline over the past year and its price is nearing a 10-year high.

Francisco Garcia Paramés is the only guru shareholder of XTER:BMW3.

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

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

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Bayerische Motoren Werke has a market cap of €49.77 billion. Its shares are currently trading at around €61.55 with a P/E ratio of 10.30, a P/S ratio of 0.89 and a P/B ratio of 1.54.

Wolters Kluwer NV (XAMS:WKL)

The guru’s second largest position is in Wolters Kluwer where he owns 4,906,001 shares of the company’s stock. His position in the company represents 6.7% of his total portfolio and 1.66% of the company’s shares outstanding.

Paramés increased his position in Wolters Kluwer 0.92% over the fourth quarter by purchasing 44,652 shares of the company’s stock. He bought this stock in the price range of €18.85 to €20.93, with an estimated quarterly price of €18.24. Since then the price per share has increased approximately 9.6%.

The guru has held a position in the company since 2012Q2, and has seen average gains of 58%. Paramés’ historical holding history:

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Wolters Kluwer is a leading global information services and publishing company. The company provides products and services globally for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors.

Wolters Kluwer’s historical revenue and net income:

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Francisco Garcia Paramés is the only guru shareholder of XAMS:WKL.

The analysis on Wolters Kluwer reports that the company’s operating margin is expanding, its dividend yield is at a 5-year low and its price is near a 5-year high.

The Peter Lynch Chart suggests that the company currently appears to be overvalued:

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Wolters Kluwer has a market cap of €5.91 billion. Its shares are currently trading at around €20.00 with a P/E ratio of 18.90, a P/S ratio of 1.66 and a P/B ratio of 3.85. The company had an annual average earnings growth of 4.3% over the past ten years.

EXOR Spa (MIL:EXO)

Paramés’ third largest position is in EXOR where the guru holds on to 3,457,765 shares. His holdings make up for 6.9% of his total portfolio and 2.16% of the company’s shares outstanding.

Last quarter EXOR was Paramés’ second largest holding, but over the duration of the quarter the guru reduced his position -1.32% by selling a total of 46,094 shares. He sold these shares in the price range of €27.19 to €30.06, with an estimated average quarterly price of $25.74. Since then the price per share has increased about 11.9%.

Paramés bought into the company in 2013Q2, and since then has seen average gains of 24% on his shares bought. Paramés’ historical holding history as of the fourth quarter:

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EXOR S.p.A. is one of Europe’s leading investment companies and is controlled by the Agnelli Family. It has a net asset value of over 8.5 billion euros. EXOR makes long-term investments focused on global companies in diversified sectors, mainly in Europe in the U.S.

EXOR’s historical revenue and net income:

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

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EXOR S.p.A. has a market cap of €7.18 billion. Its shares are currently trading at around €29.16 with a P/E ratio of 3.90, a P/S ratio of 0.07 and a P/B ratio of 1.17. The company had an annual average earnings growth of 186.30% over the past five years.

Thales (XPAR:HO)

Francisco Paramés’ fourth largest holding is in Thales where he holds on to 1,837,329 shares of the company’s stock. His position in Thales represents 5.7% of his total portfolio and 0.91% of the company’s shares outstanding.

During the third quarter Paramés cut his position -9.71% by selling 197,567 shares of Thales stock. He sold these shares in the fourth quarter price range of €41.02 to €46.80, with an estimated average quarterly price of €44.22 per share. Since then the price per share is up about 9.3%.

Paramés’ holding history as of the close of the fourth quarter:

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Thales is a French multinational company that designs and builds electrical systems and provides services for the aerospace, defense, transportation and security markets.

Thales’ historical revenue and net income:

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The analysis on Thales reports that the company’s price is near a 10-year high and its P/S ratio is near a 5-year high.

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

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Thales has a market cap of €9.73 billion. Its shares are currently trading at around €48.35 with a P/E ratio of 17.70, a P/S ratio of 0.68 and a P/B ratio of 1.93. The company had an annual average earnings growth of 19.70% over the past five years.

Wm Morrison (LSE:MRW)

The guru’s fifth largest holding is in Wm Morrison Supermarkets where he holds on to 14,734,876 shares of the company’s stock. His holdings make up for 3.1% of his total portfolio and 0.63% of the company’s shares outstanding.

Over the duration of the third quarter Paramés bought 743,008 shares of the company’s stock, representing a 5.61% increase in his holdings. The guru purchased these shares in the fourth quarter estimated average quarterly price of £2.71 per share. Since then the price per share has dropped -11.4%.

Since the guru bought into the company during the fourth quarter of 2012, he has seen average gains of 7%. Paramés’ historical holding history:

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Wm Morrison Supermarkets is the fourth largest chain of supermarkets in the UK. The company is usually referred to and is branded as Morrison’s.

Wm Morrison’s historical revenue and net income:

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Francisco Garcia Paramés is the only guru shareholder of Wm Morrison.

The analysis on Wm Morrison reports that the company’s operating margin is currently expanding, the dividend yield is at a 10-year high and over the past three years they have issued £1.2 billion of debt.

The Peter Lynch Chart suggests that the company currently appears to be undervalued:

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Wm Morrison has a market cap of £5.6 billion. Its shares are currently trading at around £2.40 with a P/E ratio of 9.00, a P/S ratio of 0.32 and a P/B ratio of 1.26. The company had an annual average earnings growth of 21.20% over the past ten years.

Check out the entirety of Francisco Garcia Paramés’ fourth quarter portfolio.

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