MS Global Financial Fund increased its stakes in five positions during 1QFY15, according to GuruFocus Real Time Picks. The Fund's portfolio is valued at $554 million, with 38 positions total and a 3% quarter over quarter turnover.
Over half of the Fund's portfolio (55.8%) consists of stocks in the consumer defensive sector. The second most heavily weighted sector is consumer cyclical, which makes up 15.8% of the portfoio, and third is technology, which is 14.7% of the portfolio.
Here's a look at a few of the Fund's first quarter updates.
Microsoft Corp (MSFT, Financial)
MS Global purchased 231,751 shares of MSFT at an average price of $43.53 a share, bringing the total number of shares to 866,236, valued at $35,217,000. MSFT makes up 6.35% of the Fund's overall portfolio.
Microsoft develops, manufactures, licenses and supports software products and services for various computing devices. The company was founded in 1975.
Libro, an Australian retailer recently leaked images of the latest Xbox One controller that Microsoft is set to release June 8. New changes to the controller include a 3.5mm headphone jack.
According to the Peter Lynch earnings line, MSFT is valued at $36.70 a share. The stock is currently trading at $47.03, which indicates that it may be currently overvalued.
Revenue per share for the trailing twelve months as of March 2015 was $11.41 and its growth rate for the year was 15.10%. The company has shown predictable revenue and earnings growth, which is a good sign for investors.
Investors should be cautious of the P/S ratio of 4.1, however, because it is close to the five-year high of 4.53.
Japan Tobacco Inc (TSE:2914, Financial)
84,100 shares of Japan Tobacco were purchased at an average price of $3533.32 a share. The Fund now owns 273,800 shares valued at $8,651,000. The stock makes up 1.56% of its overall portfolio.
The company manufactures tobacco and was incorporated in 1985. At the end of April, the company announced its agreement to acquire Logic Technology Development LLC, which is one of the top US e-cigarette brands.
According to the DCF calculator, Japan Tobacco's intrinsic value is ¥3327.22. The stock is currently trading at ¥4540, which indicates it may currently be overvalued, as the margin of safety is -36%.
Revenue per share for the trailing twelve months as of September 2014 was ¥1,327.87. Over the past five years, the average growth rate was -25.3% a year due to the fact that revenue has been declining for five years.
Proctor & Gamble Co (PG)
14,545 shares of PG were purchased at an average price of $85.98 a share. PG now makes up 4.75% of the Fund's portfolio with 321,057 shares valued at $26,307,000.
Proctor & Gamble is a provider of branded consumer packaged goods and was incorporated in Ohio in 1905.
According to recent reports, YouTube Channel Beauty Recommended, where a video hosted by Ruth Crilly, is under fire with the UK's Advertising Standards Authority (ASA) because it did not properly acknoqledge the fact that it was sponsored by Proctor & Gamble. Although the channel informs viewers that the videos are "brought to you by Proctor & Gamble," as soon as viewers arrive to the channel, the ASA does not feel that is enough because of the term "brought to you by." The ASA does not believe the term, along with "sponsored by", do not clearly show the viewers which brands hold editorial control.
According to the Lynch earnings line, PG's intrinsic value is $52.20 and the stock is currently trading at $78.39 a share, which indicates it may currently be overvalued.
Investors should be concerned about the current P/E ratio of 25.58, which is close to its 10-year high of 26.78.
Revenue per share for the trailing twelve months as of March 2015 was $28.14. Its growth rate for the past ten years was 4.4% a year. The company has shown predictable revenue and earnings growth, which is a good sign for investors.
The Fund also added stakes in Walt Disney Co (DIS, Financial) and Twenty-First Century Fox Inc (FOX, Financial) during the first quarter of this year.
For more information on the Fund's portfolio, click here.
