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International Guru Bernard Horn Reports His Top Five in the First Quarter

Monica Wolfe

Monica Wolfe

131 followers
Guru Bernard Horn (Trades, Portfolio) of the Polaris Global Value Fund reported his first quarter holdings earlier today. The guru focuses his investments on two philosophies – that the country and industry factors are important determinants of security prices, and that global market fluctuations produce mispriced stocks.

Horn’s most recent portfolio boasted four new stocks bringing his holdings to 83 stocks valued at $240 million. The following five companies are the top five stocks in the Polaris Global Value Fund’s portfolio.

Greencore Group (LSE:GNC)

Bernard Horn (Trades, Portfolio)’s largest holding is in the British company Greencore Group. The guru holds on to 2,345,220 shares of the company’s stock, representing 4.5% of his total portfolio as well as 0.58% of the company’s shares outstanding.

Horn did not alter his position in the company over the past quarter. Since his fund’s last addition in the fourth quarter of 2013, the price per share is up 39.2%.

Horn’s historical holding history:

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Greencore Group PLC is a producer of convenience foods with strong market leadership positions in the UK convenience food market across sandwiches, chilled prepared meals, cooking sauces and pickles, cakes and desserts and Yorkshire puddings.

Greencore’s historical revenue and net income:

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The analysis on Greencore reports that the company’s revenue has been in decline over the past five years, the company has issued GBP42.429 of debt over the past year and the company has had an operating loss over the past year.

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

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Greencore Group has a market cap of £1.07 billion. Its shares are currently trading at around £2.59 with a P/E ratio of 14.80, a P/S ratio of 0.88 and a P/B ratio of 4.14. The company had an annual average earnings growth of 11.40% over the past five years.

Forest Laboratories (FRX)

The guru’s second largest position is in Forest Laboratories where he holds on to 62,200 shares of the company’s stock. This position represents 2.4% of his total portfolio as well as 0.02% of the company’s shares outstanding.

Horn bought in to the company in the third quarter of 2011 and has since then only made one minor change to his holdings. Since his buy in 2011, the average share price has increased 164%.

Horn’s historical holding history:

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Forest Laboratories develops, manufactures and sells branded forms of ethical drug products most of which require a physician's prescription.

Forest Laboratories’ historical revenue and net income:

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The analysis on Forest Laboratories reports that the company has no debt, its revenue has been in decline over the past three years and its price is sitting at a 5-year high.

Also over the past year the company named a new President and CEO. Forest Laboratories named former CEO of Bausch + Lomb Brenton Saunders as the company’s new leader. Saunders took on his new role on Oct. 1, 2013.

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

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Forest Laboratories has a market cap of $24.81 billion. Its shares are currently trading at around $91.56 with a P/E ratio of 154.70 and a P/S ratio of 7.30.

Methanex (TSX:MX)

The guru’s third largest holding is in Methanex where he maintains 85,437 shares of the company’s stock. His position represents 2.3% of his total portfolio and 0.09% of the company’s shares outstanding.

Horn has not altered his position in the company since the third quarter of 2012. Since then the price per share has jumped 130.5%.

Bernard Horn (Trades, Portfolio)’s holding history as of the close of the first quarter:

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Methanex is a Canadian company that produces and markets methanol, a chemical that is used to make a range of industrial, consumer and energy products.

Methanex’s historical revenue and earnings growth:

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The analysis on Methanex reports that the company has a high Piotroski F-Score, indicating a very healthy situation for the company.

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

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Methanex has a market cap of $6.3 billion. Its shares are currently trading at around $65.57 with a P/E ratio of 17.60, a P/S ratio of 1.93 and a P/B ratio of 4.20. The company had an annual average earnings growth of 18.50% over the past five years.

Ameris Bancorp (ABCB)

Horn’s fourth largest position goes to Ameris Bancorp where he holds on to 185,050 shares of the company’s stock. This position represents 1.8% of this total holdings as well as 0.77% of the company’s shares outstanding.

The guru has not changed his holdings in Ameris since the fourth quarter 2012, and since then the price per share has increased 71.9%.

Bernard Horn (Trades, Portfolio)’s historical holding history:

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Ameris Bancorp is a financial holding company whose business is conducted mainly through its wholly-owned banking subsidiary, Ameris Bank, which provides a full range of banking services to its retail and commercial customers located mainly in the Southern United States.

Ameris Bancorp’s historical revenue and earnings growth:

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The analysis on Ameris reports that the company’s Altman Z-Score is in distress implying that bankruptcy is a possibility within the next couple of years. The analysis also notes that the company’s revenue has been in decline over the past five years.

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

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Ameris Bancorp has a market cap of $508.9 million. Its shares are currently trading at around $20.22 with a P/E ratio of 26.60, a P/S ratio of 3.00 and a P/B ratio of 1.70.

Duni AB (OSTO:DUNI)

Horn’s fifth largest holding is in Duni AB where he maintains 305,200 shares of the company’s stock. This position makes up for 1.7% of Horn’s total portfolio as well as 0.65% of the company’s shares outstanding.

The guru hasn’t altered his holdings in Duni since the first quarter of 2011, and since then the price per share has increased approximately 58.2%.

Horn’s historical holding history:

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Duni AB designs; produces and markets table covers, napkins, candles, and other table setting products. Other products and services include packaging and packaging systems for prepared food and take-away markets.

Duni’s historical revenue and net income:

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The analysis on Duni reports that the company’s dividend yield is close to a 5-year low, its price is near a 10-year high and its revenue has been in decline over the past five years.

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

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Duni has a market cap of kr5.16 billion. Its shares are currently trading at around kr109.75 with a P/B ratio of 2.41, a P/E ratio of 29.30 and a P/S ratio of 1.36. The company holds a dividend yield of 2.27%.

Check out Bernard Horn (Trades, Portfolio)’s complete first quarter holdings here.

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