David Dreman (Trades, Portfolio) is the founder and chairman of Dreman Value Management, and also serves as the firm's CIO. The firm's portfolio is composed of 432 stocks, and the following are a few of his holdings that are trading with a very wide margin of safety, according to the Peter Lynch earnings line.
Seadrill Ltd. (SDRL) is trading at $6.80, while the Peter Lynch earnings line gives the stock a fair price of $37.20, giving it a margin of safety of 82%.
The stock is trading with a PE of 8.24 that is ranked higher than 77% of companies in the Global Oil & Gas Drilling industry. The stock price is currently 70.21% below its 52-week high and 21.43% above its 52-week low.
Seadrill is an offshore drilling contractor that provides drilling and well services to the offshore industry. It has a fleet of drilling units that is outfitted to operate in shallow water, mid-water and deep water areas, in both benign and harsh environments.
Through a cost management program that began in 2014, the company is now targeting an increased level of cost savings for 2015. Seadrill posted a 0.7% increase for revenue and 7.8% increase for EBITDA year over year.
James Barrow (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 6.22% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.56%. Dreman holds a relatively small stake of 3,026 shares.
Atwood Oceanics Inc. (ATW) is trading at $17.64, and the Peter Lynch earnings line gives the stock a fair price of $86.1, meaning the margin of safety is 79%.
The stock is trading with a PE of 2.87 that is ranked higher than 81% of companies in the Global Oil & Gas Drilling industry. The stock is currently 55.25% below its 52-week high and 24.66% above its 52-week low.
Atwood is an offshore drilling contractor, engaged in drilling and completion of exploratory and developmental oil and gas wells.
Due to technical issues in three rigs, revenue decreased by 5.7% compared to the third quarter of a year before. Net income was $1.73 per diluted share compared to $1.89 per diluted share in the previous year.
First Pacific Advisors (Trades, Portfolio) is the company's main shareholder among the gurus with a stake of 4.04% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 3.45% and Steven Cohen (Trades, Portfolio) with a 1.59% stake.
Trinity Industries Inc. (TRN) is trading at $26.92 and the Peter Lynch earnings line gives the stock a fair price of $68.6, giving the company a 60% margin of safety.
The stock is trading with a PE of 5.74 that is ranked higher than 92% of companies in the Global Railroads industry, and the price is currently 27.54% below its 52-week high and 23.54% above its 52-week low.
The company owns businesses that provide products and services to the industrial, energy, transportation and construction sectors. The company manufactures and sells railcars and railcar parts, inland barges, structural wind towers, highway products, concrete and aggregates, tank containers, and steel parts and components.
It delivered strong results for the third quarter and also increased its earning guidance for the full year 2015. The company posted a 44% increase for EPS compared to the same quarter of a year before.
Diamond Hill Capital (Trades, Portfolio) is the company's leading shareholder among the gurus with a 0.68% stake, followed by the gurus Chuck Royce (Trades, Portfolio) with 0.52% and John Buckingham (Trades, Portfolio) with 0.09%.
Goodyear Tire & Rubber Co. (GT) is trading at $32.71 and the Peter Lynch earnings line gives the company a fair price of $150.2, giving the stock a margin of safety of 78%.
The stock is trading with a PE of 3.21 that is ranked higher than 98% of competitors in the Global Rubber & Plastics. The price is currently 3.08% below its 52-week high and 37.78% above its 52-week low.
The company is engaged in manufacturing of tires. It develops, manufactures, markets and distributes tires for various applications. The company also manufactures rubber-related chemicals.
During the third quarter, the company delivered strong financial results despite a challenging economic environment. Net income grew by 68% year over year, and segment operating margin was 14.3% compared to 11.2% in the same quarter of last year.
The company's main shareholder among the gurus is David Tepper (Trades, Portfolio) with a 3.71% stake, followed by the firms Diamond Hill Capital (Trades, Portfolio) with 2.39% and HOTCHKIS & WILEY with 1.85%.
Bellatrix Exploration Ltd. (BXE) is trading at $1.81 and the Peter Lynch earnings line gives the stock a fair price of $6.8, suggesting a margin of safety of 73%.
The stock is trading with a PE of 7.50 that is ranked higher than 67% of companies in the Global Oil & Gas E&P industry. The stock price is currently 64.99% below its 52-week high and 31.16% above its 52-week low.
Bellatrix is a Western Canada-based growth-oriented oil and gas company engaged in the exploration, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan.
During third quarter, Bellatrix delivered strong results across all key operational and financial metrics. Average production volumes and operating cash flow were particularly strong. The liquidity position remains strong and for the fourth quarter it will focus on debt reduction.
Seth Klarman (Trades, Portfolio) is the company's leading shareholder among the gurus, holding a 11.38% stake, followed by David Dreman (Trades, Portfolio) with 0.54% and Ronald Muhlenkamp (Trades, Portfolio) with 0.42% of outstanding shares.
Korea Electric Power Corp. (KEP) is trading at $22.82 and the Peter Lynch earnings line gives a fair price of $43.1, giving the stock a margin of safety of 49%.
The company is engaged in the generation, transmission and distribution of electricity and development of electric power resources in the Republic of Korea. The company also provides power plant construction services.
During the second quarter, power sales revenue increased 2.1%, revenues from the overseas business increased 38.2%, while operating revenues increased by 4.1%.
The stock is trading with a PE of 6.94 that is ranked higher than 89% of in the Global Utilities - Regulated Electric industry. The stock price is currently 1.58% below its 52-week high and 27.20% above its 52-week low.
The main guru shareholder is Donald Smith (Trades, Portfolio) with a 0.35% stake, followed by Sarah Ketterer (Trades, Portfolio) with 0.01%.
