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Canadian Leith Wheeler's Top Five Fourth Quarter Holdings

Monica Wolfe

Monica Wolfe

122 followers

Last week the Leith Wheeler Canadian Equity (Trades, Portfolio) Fund released their fourth quarter results which highlighted 46 stocks, with eight of them being new. This portfolio is valued at $1.912 billion and has a quarter-over-quarter turnover rate of 11%.

The following five stocks are the fund’s five largest holdings as of the close of the fourth quarter.

Toronto-Dominion Bank (TSX:TD)

The fund’s largest holding is in Toronto-Dominion Bank where they hold on to 2,924,200 shares of the company’s stock, representing 0.16% of the company’s shares outstanding as well as 7.7% of their entire portfolio. Over the past quarter the Canadian guru fund added 2.69%, or 76,600 shares, to their holdings. He bought these shares in the quarterly price range of C$45.51 to C$50.05. From the estimated average quarterly price, the price per share is up approximately 2.3%.

Leith Wheeler’s historical holding history:

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Toronto-Dominion is a Canada-based bank. The Company and its subsidiaries are collectively known as TD Bank Group (the Bank or TD). The bank serves its customers in four operating businesses.

Toronto-Dominon’s historical revenue and net income:

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

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

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Toronto-Dominion Bank has a market cap of C$94.59 billion. Its shares are currently trading at around C$51.47 with a P/E ratio of 14.30 and a P/S ratio of 3.29. The company had an annual average earnings growth of 4.20 over the past ten years.

GuruFocus rated Toronto-Dominion the business predictability rank of 4-star.

Bank of Nova Scotia (TSX:BNS)

The guru’s second largest holding is in the Bank of Nova Scotia where they maintain 1,973,715 shares of the company’s stock, representing 6.9% of their total portfolio as well as 0.16% of the bank’s shares outstanding.

Over the past quarter the fund upped their stake 9.35% by purchasing 168,700 shares of the company’s stock. He bought these shares in the quarterly price range of C$58.83 to C$66.45, and since then the price per share has increased roughly 0.4%.

Leith Wheeler Canadian Equity (Trades, Portfolio)’s holding history as of the close of the fourth quarter:

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Bank of Nova Scotia is a full-service financial institution, which operates its business in four major business lines: Canadian Banking, International Banking, Global Wealth Management and Scotia Capital.

Bank of Nova Scotia’s historical revenue and net income:

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

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

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Bank of Nova Scotia has a market cap of C$77.27 billion. Its shares are currently trading at around $63.60 with a P/E ratio of 12.20 and a P/S ratio of 3.48. The company had an annual average earnings growth of 7.10% over the past ten years.

GuruFocus rated the company the business predictability rank of 4-star.

Royal Bank of Canada (TSX:RY)

The guru fund’s third largest holding goes to the Royal Bank of Canada where they maintain 1,756,775 shares of the company’s stock. This position makes up for 6.6% of their total portfolio as well as 0.12% of the company’s shares outstanding.

Over the past quarter Leith Wheeler upped their holdings 1.22% by purchasing a total of 21,100 shares of the company’s stock in the fourth quarter price range of C$65.98 to C$71.75. Since then the price per share is up approximately 4.1%.

Leith Wheeler’s historical holding history:

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Royal Bank of Canada is a diversified financial services company, which provides personal and commercial banking services and a broad suite of products and financial services to individual and business clients.

Royal Bank of Canada’s historical revenue and net income:

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The analysis on the Royal Bank of Canada reports that the company’s dividend yield is near a 3-year low and that its price is near a 10-year high. It also notes that the company’s Piotroski F-Score is 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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Royal Bank of Canada has a market cap of C$104.47 billion. Its shares are currently trading at around $72.44 with a P/E ratio of 13.00 and a P/S ratio of 3.38. The company had an annual average earnings growth of 6.50% over the past ten years.

GuruFocus rated the company the business predictability rank of 4-star.

Canadian National Railway (TSX:CNR)

The guru’s fourth largest position goes to Canadian National Railway where they hold on to 1,808,300 shares of the company’s stock. This position makes up for 5.7% of their total portfolio as well as 0.22% of the railway’s shares outstanding.

Over the duration of the fourth quarter the fund upped their stake 2.84% by purchasing 49,900 shares of the company’s stock. They purchased these shares in the quarterly price range of C$52.60 to C$61.48. Since then the price per share has increased approximately 6.4%.

Leith Wheeler Canadian Equity (Trades, Portfolio)’s historical holding history:

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Canadian National Railway, together with its wholly-owned subsidiaries, is engaged in the rail and related transportation business.

Canadian National Railway’s historical revenue and earnings growth:

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The analysis on Canadian National Railway reports that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its price is near a 10-year high. It also notes that the company’s dividend yield is near 5-year low and that over the past three years they have issued C$1.1 billion of debt.

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

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Canadian National Railway has a market cap of C$50.79 billion. Its shares are currently trading at around $61.43 with a P/E ratio of 19.90 and a P/S ratio of 4.97. The company had an annual average earnings growth of 9.50% over the past ten years.

GuruFocus rated the company the business predictability rank of 4-star.

Saputo (TSX:SAP)

The guru’s fifth largest holding goes to Saputo where they maintain 2,006,800 shares of the company’s stock. This position makes up for 5.1% of their total holdings as well as 1.03% of the company’s shares outstanding.

During the fourth quarter the fund upped their position 1.5% by purchasing 29,700 shares of the company’s stock. They purchased these shares in the quarterly price range of C$46.71 to C$51.82. Since then the price per share is trading up approximately 11.7%.

Leith Wheeler’s historical holding history:

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Saputo produces, markets, and distributes dairy products in Canada, the United States and Argentina as well as bakery products in Canada. It has two operating sectors, Dairy Products and Grocery Products.

Saputo’s historical revenue and net income:

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The analysis on Saputo reports that the company’s revenue has been in decline over the past year, its dividend yield is near a 2-year low and its price is close to a 10-year high. It also reported that the company’s operating margin is expanding and its P/B ratio is close to a 1-year low.

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

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Saputo has a market cap of C$10.74 billion. Its shares are currently trading at around C$55.25 with a P/E ratio of 21.30 and a P/B ratio of 4.20. The company had an annual average earnings growth of 10.30% over the past ten year.

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

Check out the entirety of Leith Wheeler Canadian Equity’s fourth quarter portfolio here.

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