Chris Davis Raises Stake in United Technologies by Nearly 17,000%

Guru buys stake in Monsanto, sells shares of Amazon.com

Nov 17, 2015

As portfolio manager for Davis Selected Advisors, Chris Davis (Trades, Portfolio) has his fingers on the pulse of more than $60 billion in assets. His investment strategy is to acquire durable businesses that are well-managed and value priced.

Most of his high-profile deals in the third quarter involved reductions to existing stakes.

Davis’ most noteworthy transaction of the third quarter was his increase of his stake in United Technologies Corp. (UTX, Financial), a Hartford, Conn.-based conglomerate, by nearly 17,000%. Davis bought 8,794,914 shares for an average price of $97.82 per share. The deal had a 3.25% impact on Davis’ portfolio.

United Technologies has a market cap of $86.78 billion and an enterprise value of $105.49 billion. It has a P/E of 15.1, a forward P/E of 14.4, a P/B of 2.8 and a P/S of 1.3. GuruFocus has given United Technologies a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

Monday afternoon United Technologies sold for $97.83 per share.

Davis also added to his existing stake in Capital One Financial Corp. (COF, Financial), a Tysons Corner, Va.-based financial services company. Davis bought 3,458,565 shares for an average price of $80.32 per share. The transaction had a 1.04% impact on Davis’ portfolio.

Capital One has a market cap of $41.45 billion and an enterprise value of $76.55 billion. It has a P/E of 10.8, a forward P/E of 9.6, a P/B of 0.9 and a P/S of 1.9. GuruFocus has given Capital One a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Capital One sold for $77.90 per share Monday afternoon.

Davis bought a 7,372,938-share stake in Monsanto Co. (MON, Financial), a Creve Coeur, Mo.-based agrochemical and biotechnology company, for an average price of $98.8 per share. The deal had a 2.62% impact on Davis’ portfolio.

Monsanto has a market cap of $41.93 billion and an enterprise value of $47.25 billion. It has a P/E of 20, a forward P/E of 16.4, a P/B of 6.4 and a P/S of 3.1. GuruFocus has given Monsanto a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

Monday afternoon Monsanto sold for $95.34 per share.

Davis also bought a 5,461,730-share stake in Occidental Petroleum Corp. (OXY, Financial), a Houston-based oil and gas company, for an average price of $69.94 per share. The transaction had a 1.5% impact on Davis’ portfolio.

Occidental has a market cap of $57.26 billion and an enterprise value of $63.04 billion. It has a forward P/E of 59.9, a P/B of 1.9 and a P/S of 3.6. GuruFocus has given Occidental a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Occidental sold for $74.97 per share Monday afternoon.

Davis sold 1,371,311 shares of Amazon.com Inc. (AMZN, Financial), a Seattle-based ecommerce company, for an average price of $505.62 per share. The deal had a -2.09% impact on Davis’ portfolio.

Amazon.com has a market cap of $303.67 billion and an enterprise value of $297.48 billion. It has a P/E of 925.4, a forward P/E of 87, a P/B of 24.4 and a P/S of 3.0. GuruFocus has given Amazon.com a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Amazon.com sold for $647.81 per share Monday afternoon.

Davis sold 6,072,290 shares of Wells Fargo & Co. (WFC, Financial), a San Francisco financial services company, for an average price of $54.99 per share. The transaction had a -1.2% impact on Davis’ portfolio.

Wells Fargo has a market cap of $282.31 billion and an enterprise value of $561.67 billion. It has a P/E of 13.4, a forward P/E of 12.3, a P/B of 1.6 and a P/S of 3.4. GuruFocus has given Wells Fargo a Financial Strength rating of 6/10 and a Profitability and Strength rating of 5/10.

Wells Fargo sold for $55.27 Monday afternoon.

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