Over the last six months, I’ve written more than 40 articles for GuruFocus. In this business, you have to take the good with the bad, especially in the performance column. With that in mind, I’ve gone back over my articles and found these stocks are even better bargains now than they were at publication.
I believe in dollar cost averaging, or in this case dollar down averaging, as long as the underlying company is fundamentally rock solid and its stock still has the same upside potential from my original price point.
The mechanics are fairly simple. If you bought $1,000 worth of a company’s stock at $10, you would simply buy the same $1,000 worth at the new, lower price point. If the second buy was at $7 per share, your new holding price would be $8.26. If the stock moves back to the original price point, the investor sees a 21% gain.
In each of the following cases, cost averaging at the lower price point makes a lot sense, as the potential upside could still provide better than market returns.
Tata Motors (TTM, Financial)
Was $40 per share
Now $30 per share
While it has bounced back from a year low around $22, the stock still has a fair value closer to $40 and upside potential in the $63 range. Tata Motors posted a loss in the second quarter of 10 cents, largely caused by weakness in the Jaguar Land Rover line. Despite retail volume growth being strong impressive in both the U.S. and Europe, the Chinese market dragged both segment and company-wide profits into the red.
Original post: http://www.gurufocus.com/news/334313
Guru ownership
Ken Fisher (Trades, Portfolio) - 8,123,419 shares
Keurig Green Mountain (GMCR, Financial)
Was $78 per share
Now $46 per share
Keurig is perhaps the best bargain of them all right now. The company has earmarked an additional $1 billion of funds for stock buybacks over the next couple of years. I hope they buy them back at the current price.
Original post: http://www.gurufocus.com/news/342877
Guru ownership
Joel Greenblatt (Trades, Portfolio) - 603,320 shares
Potash Corp.Ă‚ of Saskatchewan Inc.Ă‚ (POT, Financial)
Was $28 per share
Now $20 per share
As long as fertilizer is important, potash will be important. Potash Corp. will be able to produce it for many years to come, with reserve lives ranging from 65 to 85 years at current production levels. Analysts expect ROIC of 13.5%, despite pressure on potash prices from growing supply and a potential end to the higher prices. The firm’s mines in Canada produce a high margin and the company is wrapping up an $8 billion expansion where capacity expects to reach 17 million metric tons. Fair value is closer to $40 on this one.
Original post: http://www.gurufocus.com/news/347666
Guru ownership
First Eagle Investment - 27,222,134 shares
Brian Rogers (Trades, Portfolio) - 3,650,000 shares
Fossil (FOSL, Financial)
Was $72 per share
Now $36 per share
Apple’s (AAPL) Watch has been a “disrupter” to the market, causing even high-end makers like Tag Heuer to build digital alternatives. Fossil’s stock plummeted on news that earnings plunged 39% year over year. The top line also remained problematic, falling 14% to $771 million, due to currency headwinds and challenging global demand. Yet, the company still looks to earn between $4.50 to $5 per share this year, and then upwards of $6 next year.
Original post: http://www.gurufocus.com/news/338419
Guru ownership
Wallace Weitz (Trades, Portfolio) - 1,157,741 shares
Joel Greenblatt (Trades, Portfolio) - 950,482 shares
Terra Nitrogen (TNH, Financial)
Was $136 per share
Now $104 per share
This stock gets the best dividend award, throwing off more than 9.5% to investors in 2015 as the stock sits at roughly the same price it started at in January. That alone has helped it beat the market. Many analysts expect better operating results for chemical companies in the coming years as industry conditions recover. Strength in the U.S. dollar and the weakness in global commodities markets should persist for Terra Nitrogen, but I believe the dividend will remain intact and growing.
Original post: http://www.gurufocus.com/news/333061
Qualcomm (QCOM, Financial)
Was $64 per share
Now $49 per share
Qualcomm has a vast array of IP assets in the CDMA technology as all 3G networks are based on its technology, and with the vast majority of 4G devices being backward compatible, Qualcomm will probably be able to keep royalties on the majority of smartphones sold over the next 10 to 20 years. Down $15, it's a better buy today than it was just a few months ago.
Original post: http://www.gurufocus.com/news/348267
Guru ownership
Brian Rogers (Trades, Portfolio) - 4,500,000 shares
Bill Nygren (Trades, Portfolio) - 4,845,000 shares
Ken Fisher (Trades, Portfolio) - 9,387,122 shares
James Barrow (Trades, Portfolio) - 18,439,912 shares
Disclosure:Ă‚ Ă‚ I have no position in any of the stocks mentioned.Ă‚
