Steven Cohen (Trades, Portfolio) is the manager of Point72 Asset Management with a $14 billion portfolio that is composed of 712 stocks. According to GuruFocus'Ă‚ All-In-One screener, the following are the companies he recently bought with a wide margin of safety.
During Q2 2015, he increased his stake by 2.86% in Potash Corp of Saskatchewan Inc (POT) and the company looks undervalued at the current price of $24.51. The DCF calculator gives a fair value of $46.05 with a current margin of safety of 47%. GuruFocus users confirm almost the same evaluation, giving to the company a fair value of $40.05, which was the average price after seven votes.
The company owns and operates five potash mines in Saskatchewan and one in New Brunswick. Its phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed and industrial acid, which is used in food products and industrial processes. The company also has phosphate mines and mineral processing plant complexes in northern Florida and North Carolina.
The stock is trading with a P/E ratio of 14.95 that is ranked higher than 57% of other companies in the Global Agricultural Inputs industry, which has an average P/E ratio of 17.70. The price has dropped by 30% during the last 12 months (by 31% year to date) and is now -36.17% from its 52-week high and +0.42% from its 52-week low.
Potash Corp has a profitability and growth rating of 8/10 with positive returns: ROE 17.32%, ROA 8.72% and ROC of 18.16%. Return on assets is outperforming the industry, ranking higher than 81% of other companies that have an average ratio of 3.11%.
In the last quarter, earnings per share hit the midpoint of their guidance range at $0.50 per share, but trailed last year’s total, primarily due to weaker nitrogen prices. For the third quarter, they expect earnings to be in range of $0.35 - $0.45 per share.
First Eagle Investment (Trades, Portfolio) is the main hedge fund holding Potash Corp with 22,720,864 shares, amounting to 2.72% of shares outstanding or 1.68% of total assets of its portfolio. The second hedge fund is PRIMECAP Management (Trades, Portfolio), which holds 0.97% of outstanding shares, and Brian Rogers (Trades, Portfolio) who holds 0.45% of outstanding shares.
During Q2 2015, he increased his stake by 1997% of Comcast Corp (CMCSA) and the company looks undervalued at the current price of $54.59. The DCF calculator gives a fair value of $96.22 with a current margin of safety of 43%. GuruFocus users give the company a fair value of of $66.27 (average price after 7 votes), putting the stock as slightly undervalued at the current price.
The company is a media and technology company with two main businesses: Comcast Cable and NBCUniversal. Its operations are in five reportable business segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks.
The stock is trading with a P/E ratio of 16.11 that is ranked higher than 58% of other companies in the Global Pay TV industry, which has an average P/E ratio of 18.90. The price has risen by 2% during the last 12 months and is now -17.14% from its 52-week high and +9.16% from its 52-week low.
Comcast has a very solid profitability and growth with a rating of 9/10 with positive returns. ROC of 51.10% is outperforming the company’s industry, ranking higher than 81% of other companies that have an average return on capital of 13.77%.
In the last quarter, consolidated revenue increased 11.3%, operating cash flow Increased 8.0%, and operating income increased 7.9%. Earnings per Share (EPS) for the second quarter of 2015 increased 10.5% over the year-ago quarter. It was the best second quarter video results they’ve had in nine years.
Dodge & Cox is the main hedge fund holding CMCSA with 45,153,213 shares, amounting to 1.8% of shares outstanding. Ken Fisher (Trades, Portfolio) is the second largest shareholder with 0.49% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 0.16%.
During Q2 2015, he increased his stake by 162% in CSX Corp (CSX) and the company looks undervalued at the current price of $26. The DCF calculator gives a fair value of $47.24 that means the current margin of safety is 45%. GuruFocus users confirm almost the same evaluation, giving to the company a fair value of $46.66 (average price after three votes).
The company is engaged in transportation supplier, which provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. Its two business segments are Rail and Intermodal.
The stock is trading with a P/E ratio of 13.02 that is ranked higher than 63% of other companies in the Global Railroads industry, which has an average P/E ratio of 16.80. The price has dropped by 14% during the last 12 months (by 26% year to date) and is now -33.38% from its 52-week high and +3.43% from its 52-week low.
CSX has a profitability and growth rating of 9/10 with positive returns, ROE 17.80%, ROA 6.06%, ROC of 13.08%. Return on equity is the one that is outperforming the industry more than the others, being ranked higher than 84% of other companies. The average ROE of the industry is 7.21%.
Quarterly operating income was more than $1 billion for the first time in company history.
CSX expects to deliver mid-to-high single digit earnings per share growth for 2015, and also expects meaningful margin expansion as it progresses towards a full-year operating ratio in the mid-60s longer term.
Steven Cohen (Trades, Portfolio) is the main guru holding CSX with 5,705,150 shares, amounting to 0.58% of shares outstanding and 1.29% of total assets of his portfolio. PRIMECAP Management (Trades, Portfolio) holds holds 0.47% of outstanding shares, and Steve Mandel (Trades, Portfolio) holds 0.28%.
During Q2 2015, he increased his stake by 24.44% in Big Lots (BIG) and the company looks undervalued at the current price of $41.59. The DCF calculator gives a fair value of $74.03 that means the current margin of safety is 44%.
The stock is trading with a P/E ratio of 15.40 that is ranked higher than 75% of other companies in the Global Discount Stores industry, which has an average P/E ratio of 23.30. The price has dropped by 13% during the last 12 months but has risen by 6% since the beginning of the year, and is now -21.80% from its 52-week high and +6.08% from its 52-week low.
Big Lots has a profitability and growth rating of 7/10 with positive returns, ROE 18.09%, ROA 8.40% and ROC of 23.94%. Return on assets is the one that is outperforming the industry more than the others, being ranked higher than 83% of other companies, that have an average return of 3.43%.
In the last quarter, comparable store sales for stores open at least 15 months increased 1.6% for the quarter, compared to their guidance of +1% to +2%. The company provided initial Q2 guidance for comparable store sales to increase in the range of 2% to 3%.
During the last quarter, continuing operations were $0.60 per diluted share, and this result compares to their guidance of income in the range of $0.55 to $0.60 per diluted share. For Q2, they expect income from continuing operations of $0.31 to $0.35 per diluted share.
Richard Snow (Trades, Portfolio) is the main shareholder with 1,759,815 shares, amounting to 3.39% of shares outstanding. The second one is Joel Greenblatt (Trades, Portfolio) who holds 2.88% of outstanding shares followed by Westport Asset Management (Trades, Portfolio) with 0.89%.
During Q2 2015, he increased his stake by 300% in Copa Holdings S.A. (CPA) and the company looks undervalued at the current price of $49.31. The DCF calculator gives a fair value of $100.19 that means the current margin of safety is 48%. GuruFocus users give an even wider margin of safety, giving to the stock a fair value of $186.44 (average price after 13 votes).
The company is a Latin American provider of airline passenger and cargo service through its two main operating subsidiaries: Copa Airlines and Copa Colombia.
The stock is trading with a P/E ratio of 14.06 that is ranked higher than 53% of other companies in the Global Airlines industry, which has an average P/E ratio of 14.80. The price has dropped by 58% during the last 12 months and is now -61.25% from its 52-week high and +0.04% from its 52-week low.
Copa has a profitability and growth rating of 7/10 with easy returns, ROE 7.85%, ROA 4.05% and ROC of 8.05%. The current profitability is having the worst performance if compared to the recent company’s history, and just ROA is outperforming Copa’s industry, being ranked higher than 64% of its competitors in the Global Pay TV industry, which has an average ratio of 2.58%.
Copa Holdings’ second quarter results reflected lower passenger yields, as well as further demand weakness. Total revenues decreased 20.1%.
As a result of lower unit revenues partially offset by lower unit costs, operating margin for the period came in at 9.1%, compared to 19.5% in 2Q14, and company is projecting an operating margin in the range of 11% to 13% for 2015.
Charles Brandes (Trades, Portfolio) is the main shareholder with 1,330,067 shares, amounting to 3.03% of shares outstanding. The second one NWQ Managers with 1.27% of outstanding shares, and James Barrow (Trades, Portfolio) with 0.01%.
Summary
All these companies are trading with a very wide margin of safety and good P/E ratios. All of them have positive and strong profitability.
| Ticker | Margin of Safety | P/E |
| POT | 47% | 14.95 |
| CMCSA | 43% | 16.11 |
| CSX | 45% | 13.02 |
| BIG | 44% | 15.40 |
| CPA | 48% | 14.06 |
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