Value investor Arnold Van Den Berg (Trades, Portfolio) did not let a choppy quarter go by without adding some low-priced names to his portfolio, namely more oil and gas stocks and a small interest in China.
Van Den Berg’s total portfolio contained 54 stocks, including four new buys in the third quarter, which gave it 21% turnover. The value of his stocks is $585 million, weighted most heavily with Industrial positions at 25.2% followed by Financial Services at 24.4%.
The founder of Austin-based Century Management has 8.9% of his holdings in the energy sector, with eight positions at quarter-end. He also sold out of three: Tidewater Inc. (TDW, Financial), Stone Energy Corp. (SGY, Financial) and Diamond Offshore Drilling (DO, Financial); and almost sold out one, cutting his position in Total SA (TOT, Financial) by 97.5%. His largest energy holding, Atwood Oceanics Inc. (ATW, Financial), was increased by 36.6% to 2.3% of the portfolio.
“In our opinion, the fear of a prolonged disaster scenario for the energy sector is overblown and largely discounted in current stock prices, presenting an opportunity for very attractive returns in many energy-related companies,” Van Den Berg said in an “Energy Industry Update” his firm produced back in April.
Van Den Berg bought the following four new names in quarter three: SPDR S&P Oil & Gas Explore & Prod. ETF (XOP, Financial), iShares MSCI Hong Kong Index Fund ETF (EWH, Financial), Cisco Systems Inc. (CSCO, Financial) and Helmerich & Payne Inc. (HP, Financial).
SPDR S&P Oil & Gas Explore & Prod. ETF (XOP, Financial)
Van Den Berg bought 561,920 shares of the S&P Oil & Gas ETF, a 3.16% portfolio weight. The company’s share price averaged $38 for the quarter.
iShares MSCI Hong Kong Index Fund ETF (EWH, Financial)
Next in size was 360,085 shares of the MSCI Hong Kong Index ETF, a 1.18% portfolio weight. The shares price averaged $21 for the quarter.
Cisco Systems Inc. (CSCO, Financial)
Van Den Berg bought 1,700 shares of Cisco Systems, a 0.01% portfolio weight. The stock’s price averaged $27 for the quarter.
Cisco Systems Inc. was incorporated in California on Dec. 10, 1984. Cisco Systems Inc. has a market cap of $148.6 billion; its shares were traded at around $29.36 with a P/E ratio of 16.97 and P/S ratio of 3.07. The dividend yield of Cisco Systems Inc. stocks is 2.78%. Cisco Systems Inc. had an annual average earnings growth of 7.6% over the past 10 years. GuruFocus rated Cisco Systems Inc. the business predictability rank of 4-star.
Helmerich & Payne Inc. (HP, Financial)
Van Den Berg bought 740 shares of Helmerich & Payne Inc., a 0.01% portfolio weight. The company’s share price averaged $57 per share.
Helmerich & Payne Inc. was incorporated under the laws of the State of Delaware on Feb. 3, 1940, and is successor to a business originally organized in 1920. Helmerich & Payne Inc. has a market cap of $6.05 billion; its shares were traded at around $56.18 with a P/E ratio of 10.06 and P/S ratio of 1.70. The dividend yield of Helmerich & Payne Inc stocks is 4.9%. Helmerich & Payne Inc. had an annual average earnings growth of 21.8% over the past 10 years. GuruFocus rated Helmerich & Payne Inc. the business predictability rank of 3.5-star.
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