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Ken Fisher's Top Increases of the Second Quarter

July 28, 2014 | About:
Monica Wolfe

Monica Wolfe

129 followers

CEO and CIO of Fisher Investments and regular Forbes contributor, Ken Fisher, had a pretty busy second quarter. Fisher purchased a total of 50 new stocks. His second quarter portfolio holds 558 stocks and is valued at over $47.56 billion. The following five stocks represent the five companies where Fisher made the largest increase in holdings during the second quarter.

U.S. Bancorp (USB)

The largest increase made by Ken Fisher (Trades, Portfolio) over the duration of the second quarter was in U.S. Bancorp where upped his stake 14806.9% by purchasing a total of 1,087,125 stocks. He bought these shares in the second quarter price range of $40.15 to $43.82, with an estimated average quarterly price range of $41.71 per share. Since his buy the price per share is up roughly 2.5%.

Fisher now holds on to 1,094,467 shares of U.S. Bancorp, representing 0.1% of his portfolio weighting and 0.06% of the company’s shares outstanding.

Fisher’s historical holding history:

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U.S. Bancorp is a multi-state financial services holding company headquartered in Minneapolis, Minnesota. U.S. Bancorp provides a full range of financial services, including lending and depository services, cash management, foreign exchange and trust and investment management services.

U.S. Bancorp’s historical revenue and net income:

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The analysis on U.S. Bancorp reports that the company’s revenue per share 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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U.S. Bancorp has a market cap of $77.11 billion. Its shares are currently trading at around $42.48 with a P/E ratio of 14.10, a P/S ratio of 4.00 and a P/B ratio of 2.10. The company’s dividend yield is at 2.20% and it’s had annual average earnings growth of 0.30% over the past ten years.

Heico Corp (HEI)

The guru’s second largest increase of the second quarter was in Heico Corp where he upped his stake 887.78% by purchasing 711,998 shares of the company’s stock. Fisher bought these shares in the quarterly price range of $49.89 to $61.72, with an estimated average quarterly price of $54.90 per share. Since then the price per share has dropped -10.9%.

Fisher now owns 792,198 shares of Heico’s stock, representing 0.087% of his total portfolio as well as 1.19% of the company’s shares outstanding.

Fisher’s historical holdings as of the close of Q2:

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Heico Corp., through its subsidiaries, is a manufacturer of Federal Aviation Administration (FAA)-approved jet engine and aircraft component replacement parts, other than the original equipment manufacturers and their subcontractors. The company's business is comprised of two operating segments, the Flight Support Group and the Electronic Technologies Group.

Heico’s historical revenue and net income:

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The analysis on Heico reports that the company has issued $426 million of debt, it has shown predictable revenue and earnings growth and its operating margin is expanding. It also notes that the company’s asset growth is faster than its revenue growth, which might be a sign that the company is becoming less efficient.

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

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Heico has a market cap of $3.25 billion. The company is currently trading at around $48.82 with a P/E ratio of 23.50, a P/S ratio of 2.40 and a P/B ratio of 4.10. The company had an annual average earnings growth of 17.60% over the past ten years.

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

Bayer AG (BAYRY)

Fisher’s third largest increase of the quarter was in Bayer AG where he upped his stake 750.48% by purchasing 2,031,656 shares of the company’s stock. He bought these in the quarterly price range of $126.84 to $144.81, with an estimated average price of $138.38. Since then the price per share has dropped approximately -3.8%.

Ken Fisher (Trades, Portfolio) now holds on to 2,302,369 shares of Bayer’s stock. This position makes up for 0.68% of his total portfolio as well as 0.28% of the company’s shares outstanding.

Ken Fisher (Trades, Portfolio)’s historical holdings:

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Bayer AG is an international research-based company active in life sciences, polymers, and chemicals. Bayer's operating units include health-care products, material sciences, and crop sciences. Bayer's over-the-counter health-care product division is the third-largest in the world.

Bayer’s historical revenue and net income:

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The analysis on Bayer reports that the company’s Piotroski F-Score is high, its operating margin is expanding and its price is close to a 10-year high. The analysis also notes that the company’s revenue per share has slowed down over the past year and that its dividend yield is sitting near a 10-year high.

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

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Bayer AG has a market cap of $110.65 billion. Its shares are currently trading at around $133.81 with a P/E ratio of 23.80, a P/S ratio of 2.00 and a P/B ratio of 3.90. The company had an annual average earnings growth of 6% over the past ten years.

WPP PLC (WPPGY)

Over the past quarter Fisher upped his holdings in WPP PLC 439.35% by purchasing a total of 412,553 shares of the company’s stock. He bought these shares in the price range of $101.52 to $109.77, with an estimated first quarter average price of $106.42 per share. Since then the price per share is down approximately -3.2%.

Fisher now holds on to 506,468 shares of the company’s stock. This position makes up for 0.12% of the guru’s portfolio as well as 0.19% of WPP’s shares outstanding.

Fisher’s holding history as of the close of the second quarter:

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WPP PLC is a communications services organization offering national and multinational clients a comprehensive communications services. The company operates in four reportable segments namely Advertising and Media Investment Management; Consumer Insight; Public Relations & Public Affairs; and Branding & Identity, Healthcare and Specialist Communications.

WPP’s historical revenue and net income:

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The analysis on WPP reports that the company has a high Piotroski F-Score, it has shown predictable revenue and earnings growth, its operating margin is expanding, and its dividend yield is near a 5-year high. The analysis also noted that over the past year the company has issued GBP1.1 billion, but overall its debt level is acceptable.

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

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WPP has a market cap of $27.22 billion. Its shares are currently trading at around $103.00 with a P/E ratio of 17.20, a P/S ratio of 1.50 and a P/B ratio of 2.10. The dividend yield of WPP stocks is at 2.70% and the company has seen an annual average earnings growth of 9.20% over the past ten years.

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

Biogen Idec (BIIB)

Over the past quarter Fisher upped his holdings in Biogen Idec 386.61% by purchasing a total of 70,619 shares of the company’s stock. He bought these shares in the price range of $274.00 to $324.74, with an estimated second quarter average price of $300.74 per share. Since then the price per share is up approximately 10.7%.

Fisher now holds on to 88,885 shares of the company’s stock, representing 0.059% of his total portfolio and 0.04% of the company’s shares outstanding. This is the largest buy Ken Fisher (Trades, Portfolio) has made into Biogen.

Fisher’s historical holding history as of the second quarter:

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Biogen is a global biotechnology company that discovers, develops, manufactures and markets therapies for the treatment of multiple sclerosis (MS) and other autoimmune disorders, neurodegenerative diseases and hemophilia.

Biogen’s historical revenue and net income:

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The analysis on Biogen reports that the company holds enough cash to cover all of its debt, its operating margin is expanding and its Piotroski F-Score is high.

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

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Biogen has a market cap of $79.37 billion. Its shares are currently trading at around $336.12 with a P/E ratio of 37.30 and a P/S ratio of 9.60. The company had an annual average earnings growth of 25.70% over the past ten years.

Check out Fisher’s complete first quarter portfolio here.

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