Robert Bruce (Trades, Portfolio) is founder of the Bruce Fund (BRUFX) run by Robert and his son, Jeff. From 2000 through 2006, the Bruce Fund returned annualized 29.7%. Bruce's previous returns and more recent returns have been lower. He invests in stocks -- mostly small- and mid-cap plus the occasional large-cap -- and convertible and distressed bonds. The fund tends to hold its stocks for the long-term.
Web Page:Â http://www.thebrucefund.com/
His portfolio is composed of 52 stocks and has a total value of $362 Mil. During the last quarter with 1 new buy, 4 adds, and 2 sales he increased the total value of his portfolio by about $71 Mil and his top growing stocks of the whole portfolio are Omega Protein Corp (OME), US Ecology Inc. (ECOL), International Business Machines Corp. (IBM), Exxon Mobil Corporation (XOM), Merck & Co Inc (MRK).
Omega Protein Corp (OME)
OME has a market Cap of $294.1Â Million and is currently trading at P/E (ttm) of 16.10 at a very cheap level compared to the Global Packaged Foods industry that has an average P/E of 35.70.
At the current price, based on DCF model, OME fair value is $12.83, and these days the stock is trading with a negative margin of safety of 6%. The price rose by 12% over the last 12 months.
The Peter Lynch Earnings line Fair Value is set to $15.7 with a current margin of safety of 13%
Over the last 5 years, the company's revenue grew by 9.60%, EBITDA grew by 28.00% and the Book Value Growth rate is 11.10%. OME has positive returns (7.10% of ROE, 5.14% of ROA and 12.72% of ROC) and good Financial strength, rated 5/10, with a ratio of 0.07 of Cash to Debt that hits the all-time low of OME’s History.
Richard Snow is the main Guru holding OME with 1.75% of shares outstanding, or 0.12% of total assets managed with his portfolio.
US Ecology Inc. (ECOL)
ECOL has a market Cap of $1.07 billion and is currently trading at P/E (ttm) of 27.70. The price rose by 16% over the last 12 months.
At current price, based on DCF model, ECOL fair value is $18.72. The stock is heavily overpriced by170%. And even the Peter Lynch Earnings line Fair Value confirms it, suggesting a price of $27 (-85%).
Over the last 5 years, the company's revenue grew by 22.70%, EBITDA grew by 23.70% and EPS growth rate is 22.90%. This 5 years’ trend is confirmed even during the last 12 months. ECOL has positive returns (15.79% of ROE, 5.72% of ROA and 31.82% of ROC) and they are performing better than 90% of ECOL’s competitors. Despite this, Financial strength is rated 5/10 ranked lower than 56% of other companies in the same sector.
Jim Simons is the main Guru holding ECOL with 2.13% of shares outstanding, followed by Chuck Royce (0.92%) and Paul Tudor Jones (0.04%)
International Business Machines Corp. (IBM)
IBM has a market Cap of $ 160.97Â billion and is currently trading at P/E (ttm) of 13.50 at very cheap level compared to the Global Information Technology Services industry that has an Median P/E of 82.70.
The price dropped by 18% over the last 12 months and the stock is giving a negative return of 12% to Bruce’s portfolio
At current price, based on DCF model, IBM fair value is $305.1, and these days the stock is trading with a margin of safety of 47%., almost the same result of the Peter Lynch Earnings line that gives a fair value of $298.3 (46% of margin of safety).
Over the last 5 years, the company's revenue grew by 5.10%, EBITDA grew by 6.50% and EPS growth rate was 9.50%. IBM has strong and positive returns (72.51% of ROE, 9.86% of ROA and 86.79% of ROC) that are performing better than 90% of competitors. Financial strength, rated 8/10 but is ranked lower than 55% of other companies from the same sector.
Warren Buffett is the main Guru holding IBM with 7.79% of shares outstanding, followed by Jeremy Grantham (0.38%) and HOTCHKIS & WILEY(0.17%).
Exxon Mobil Corporation (XOM)
XOM has a market Cap of $357.09 billion and is currently trading at P/E (ttm) of 11.40 at very cheap level compared to the Global Oil & Gas Integrated industry 17.10 and outperforming 91% of other companies of the same sector. The price dropped by 13% over the last 12 months.
At current price, based on DCF model, XOM fair value is $ 81.63, and these days the stock is trading with a negative margin of safety of 4%. The Peter Lynch Earnings line Fair Value is set to $60.8 giving an even worse margin of safety of 39%
Over the last 5 years, the company's revenue grew by 8.30%, EBITDA grew by 9.70% and EPS growth rate is 11.70% as well as the Book Value growth rate during the same period (11.80%). XOM has positive returns (18.34% of ROE, 9.24% of ROA and 20.72% of ROC) that are outperforming 96% of the sector.
Financial strength is rated 8/10; it is also outperforming XOM’s industry but the most important ratios (Cash to Debt and Interest Coverage) were better just 6 years back.
Donald Yacktman is the main Guru holding XOM with 0.17% of shares outstanding, followed by Brian Rogers (0.14%) and Richard Pzena (0.1%).
Merck & Co Inc (MRK)
MRK has a market Cap of $163Â billion and is currently trading at P/E (ttm) of 14.20 at very cheap level compared to the Global Drug Manufacturers - Major industry that has a Median P/E of 56.80. The price is trading at the same level of 12 months back (it increased by 4%).
Both the DCF model and the Peter Lynch Earnings line return a positive margin of safety, of 5%.Â
Over the last 5 years, the company's revenue grew by 2.50%, EBITDA grew by 4.00% and EPS growth rate is 9.90%. MRK has positive returns (24.63% of ROE, 11.64% of ROA and 30.39% of ROC) and good Financial strength, rated 7/10.
Vanguard Health Care Fund is the main Guru holding MRK with 1.26% of shares outstanding, followed by Dodge & Cox (1.18%) and James Barrow (0.81%).
