NWQ Managers (Trades, Portfolio) sold many stocks during the third quarter. It is a value-oriented money management firm with several fund products and more than $54 billion under management.
It sold out its stake in Hilton Worldwide Holdings Inc. (HLT) with an impact of 0.96% on the portfolio.
Hilton is a hospitality company and along with its subsidiaries is engaged in owning, leasing, managing, developing and franchising hotels, resorts and timeshare properties. During the third quarter, EPS had a 28% increase from the same period in 2014 and adjusted EBITDA grew by 13%.
The stock looks expensive at the current price of $20. The DCF calculator gives a fair value of $8.03, estimating the stock is overvalued by 149%. GuruFocus gives Hilton Worldwide Holdings a profitability and growth rating of 5/10 with good returns (ROE 15.25%, ROA 2.87%) that are outperforming 53% of the companies in the Global Lodging industry. Financial strength has a rating of 4/10; even so cash-to-debt of 0.06 is weak and is below the industry median of 0.63.
Andreas Halvorsen (Trades, Portfolio) is the largest shareholder among the gurus with 1.55% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.35%, Ken Heebner (Trades, Portfolio) with 0.25% and Leon Cooperman (Trades, Portfolio) with 0.17%.
The firm sold out its stake in Pinnacle West Capital Corp. (PNW) with an impact of 0.37% on the portfolio.
It is a holding company that conducts business through its subsidiaries. Its subsidiary APS is a vertically-integrated electric utility that provides either retail or wholesale electric service to most of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona. Compared to the same quarter a year ago, weather-normalized retail sales improved 2.1%, while total customer growth increased 1.3% quarter-over-quarter.
The stock looks expensive at the current price of $64.49. The DCF calculator gives a fair value of $35.17, estimating the stock is overvalued by 83%. GuruFocus gives Pinnacle West Capital a profitability and growth rating of 6/10 with good returns as ROE of 9% that is outperforming 51% of the companies in the Global Utilities - Regulated Electric industry. Financial strength has a rating of 4/10.
The company’s largest shareholder among the gurus is James Barrow (Trades, Portfolio) with 2.5% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.69% and Pioneer Investments (Trades, Portfolio) with 0.37%.
NWQ sold out its stake in Rambus Inc. (RMBS) with an impact of 0.33% on the portfolio.
The company is a technology solutions company that brings invention to market. Its technology portfolio addresses the evolving power, performance and security requirements of the mobile, cloud computing and connected device markets. Due to higher royalty revenue offset by lower sales of security products, revenue was up 1% over the second quarter of 2015.
The stock looks undervalued at the current price of $11.48. The DCF calculator gives a fair value of $18.51, estimating the stock is undervalued by 38%. GuruFocus gives Rambus a profitability and growth rating of 7/10 with strong returns (ROE 46.75%, ROA 32.48%) that are outperforming 98% of the companies in the Global Semiconductor Memory industry. Financial strength has a rating of 8/10, and cash-to-debt of 2.29 is above the industry median of 1.169.
PRIMECAP Management (Trades, Portfolio) is the largest shareholder among the gurus with 7.98% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.54%, Joel Greenblatt (Trades, Portfolio) with 0.31% and George Soros (Trades, Portfolio) with 0.08%.
The fund also sold out its stake in Clearwater Paper Corp. (CLW) with an impact of 0.15% on the portfolio.
The company produces private label tissue and paperboard products. It manufactures consumer tissue, parent roll tissue, machine-glazed tissue, foam, bleached paperboard, and pulp at 15 manufacturing locations in the U.S. and Canada.
The stock looks expensive at the current price of $46.14. The DCF calculator gives a fair value of $9.95, estimating the stock is overvalued by 364%. GuruFocus gives Clearwater Paper a profitability and growth rating of 6/10 with weak returns, ROE 3.50%, ROA 1.08% that are underperforming 53% of the companies in the Global Paper & Paper Products industry. Financial strength has a rating of 6/10.
Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.62% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.33% and Joel Greenblatt (Trades, Portfolio) with 0.06%.
NWQ sold out its stake in MKS Instruments Inc. (MKSI) with an impact of 0.1% on the portfolio.
The company is a provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters to improve process performance and productivity of advanced manufacturing processes. During the last quarter, sales had a decrease of 4% from the second quarter of 2015, and an increase of 12% from the third quarter of 2014.
The stock looks expensive at the current price of $35.42. The DCF calculator gives a fair value of $26.22, estimating the stock is overvalued by 35%. GuruFocus gives MKS Instruments a profitability and growth rating of 7/10 with strong returns (ROE 15.25%, ROA 2.87%) that are outperforming 89% of the companies in the Global Scientific & Technical Instruments industry. Financial strength has a rating of 7/10 with no debt.
Chuck Royce (Trades, Portfolio) is the largest shareholder among the gurus with 11.96% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 1.3%, Joel Greenblatt (Trades, Portfolio) with 0.93% and Louis Moore Bacon (Trades, Portfolio) with 0.19%.
NWQ sold out its stake in NorthStar Realty Finance Corp. (NRF) with an impact of 0.09% on the portfolio.
The company is an internally managed REIT, and is a diversified commercial real estate investment and asset management company. NorthStar Realty Finance Limited Partnership holds all of the company's assets and conducts its operation directly or indirectly.
GuruFocus gives NorthStar Realty Finance a profitability and growth rating of 4/10 with negative returns (ROE -8.39%, ROA -1.85%) that are under performing 93% of the companies in the Global REIT - Retail industry. Financial strength has a rating of 4/10, with a weak cash-to-debt of 0.09 that is slightly above the industry median of 0.05.
Lee Ainslie (Trades, Portfolio) is the largest shareholder among the gurus with 2.89% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 1.08% and Jim Simons (Trades, Portfolio) with 0.18%.
The fund also sold out its stake in Caterpillar Inc. (CAT) with an impact of 0.09% on the portfolio.
It is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company expects 2016 sales and revenues are expected to be about 5% lower than 2015.
The stock looks expensive at the current price of $64.9. The DCF calculator gives a fair value of $56.38, estimating the stock is overvalued by 15%. GuruFocus gives Caterpillar a profitability and growth rating of 8/10 with good returns (ROE 17.22%, ROA 3.57%) that are outperforming 63% of the companies in the Global Farm & Construction Equipment industry. Financial strength has a rating of 7/10, and cash-to-debt of 0.16 is below the industry median of 0.40.
Bill Gates (Trades, Portfolio) is the largest shareholder among the gurus with 1.93% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.05%, Bill Nygren (Trades, Portfolio) with 0.76% and Joel Greenblatt (Trades, Portfolio) with 0.1%.
NWQ sold out its stake in Viavi Solutions Inc. (VIAV) with an impact of 0.08% on the portfolio.
The company is a provider of network and service enablement solutions and optical products for telecommunications service providers, wireless operators, cable operators, network-equipment manufacturers and enterprises.
GuruFocus gives Viavi Solutions a profitability and growth rating of 4/10 with negative returns (ROE 13.79%, ROA 6.73%) that are underperforming 80% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 1/10.
George Soros (Trades, Portfolio) is the largest shareholder among the gurus with 4.41% of outstanding shares, followed by Manning & Napier Advisors with 0.36%, Ken Heebner (Trades, Portfolio) with 0.23% and Jim Simons (Trades, Portfolio) with 0.12%.
The fund sold out its stake in Marvell Technology Group Ltd. (MRVL) with an impact of 0.06% on the portfolio.
It is a fabless semiconductor provider of high-performance analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.
The stock looks expensive at the current price of $8.08. The DCF calculator gives a fair value of $7.28, estimating the stock is overvalued by 11%. GuruFocus gives Marvell Technology Group a profitability and growth rating of 6/10 with weak returns (ROE 3.02%, ROA 2.58%) that are underperforming 58% of the companies in the Global Semiconductors industry. Financial strength has a rating of 9/10 with no debt.
HOTCHKIS & WILEY is the largest shareholder of the company among the gurus with 1.51% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.21%, John Buckingham (Trades, Portfolio) with 0.06% and Murray Stahl (Trades, Portfolio) with 0.02%.
