Wide Margin of Safety for Fossil and NeuStar

The DCF calculator says these stocks are undervalued

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May 18, 2016
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The following stocks are trading with a wide margin of safety according to the DCF calculator, and some of them have very low P/E ratioa. GuruFocus' All-in-One Screener can be used to find similar stocks.

Alliance Holdings GP LPĂ‚ (AHGP) has a market cap of $1.03 billion and a GuruFocus business predictability of 4.5 stars. The stock had a price of $16.28 on Wednesday with a P/E ratio of 5.84 and according to the DCF calculator is trading with a margin of safety of 79% since its fair value is $84.27. During the last 12 months the price of the stock has dropped by 85% and is now 65.78% below its 52-week high.

The company is a Delaware limited partnership, which was formed to own and control Alliance Resource Management GP LLC, the managing general partner of Alliance Resource Partners LP (ARLP).

Its profitability and growth is rated 7/10 with ROE of 31.37% ranked higher than other competitors and ROA of 5.34% ranked lower than 55% of other companies in the Global Coal industry.

The company's largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.23% of outstanding shares.

Fossil Group Inc. (FOSL) has a market cap of $1.36 billion and a GuruFocus business predictability of 4 stars. The stock had a price of $26.62 Wednesday with a P/E ratio of 6.26 and, according to the DCF calculator, is trading with a margin of safety of 78% since its fair value is $128.68. During the last 12 months the price of the stock has dropped by 64% and is now 64.41% below its 52-week high.

The company is a Delaware corporation formed in 1991 and is the successor to a Texas corporation formed in 1984. The company designs, markets and distributes consumer fashion accessories.

Its profitability and growth is rated 7/10 with ROE of 24.66% and ROA of 10.13% that are ranked higher than 79% of other companies in the Global Footwear & Accessories industry.

Wallace Weitz (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.68% of outstanding shares followed by Ray Dalio (Trades, Portfolio) with 0.96%, Michael Price (Trades, Portfolio) with 0.45%, Simons with 0.2%, Murray Stahl (Trades, Portfolio) with 0.02% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

NeuStar Inc. (NSR) has a market cap of $1.26 billion and a GuruFocus business predictability of 4.5 stars. The stock had a price of $22.56 Wednesday with a P/E ratio of 8.01 and, according to the DCF calculator, is trading with a margin of safety of 72% since its fair value is $82.27. During the last 12 months the price of the stock has dropped by 18% and is now 2.03% below its 52-week high.

The company is a provider of real time information services and data analytics. It operates data registries and delivers actionable, data-driven insights that help clients make business decisions in real time.

Its profitability and growth is rated 8/10 with ROE 23.29% that is lower and ROA of 8.23% that is higher than 79% of other companies in the Global Telecom Services industry.

The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 13.94% of outstanding shares followed by Ronald Muhlenkamp (Trades, Portfolio) with 0.54%, Joel Greenblatt (Trades, Portfolio) with 0.53%, Ken Fisher (Trades, Portfolio) with 0.4%, Simons with 0.21% and Paul Tudor Jones (Trades, Portfolio) with 0.16%.

PRA Group Inc. (PRAA) has a market cap of $1.19 billion. The stock had a price of $26.5 Wednesday with a P/E ratio of 8.66 and, according to the DCF calculator, is trading with a margin of safety of 67% since its fair value is $79.14. During the last 12 months the price of the stock has dropped by 55% and is now 29.03% below its 52-week high.

The company acquires nonperforming consumer debt, returns capital to banks and other creditors to help expand financial services for consumers in North America and Europe.

Its profitability and growth is rated 9/10 with ROE of 16.70% and ROA of 4.81% that are higher than 63% of other companies in the Global Business Services industry.

Grantham is the company's largest shareholder among the gurus with 0.2% of outstanding shares followed by Jones with 0.05% and Greenblatt with 0.02%.

Baxter International Inc. (BAX) has a market cap of $25.2 billion and a GuruFocus business predictability of 3 stars. The stock had a price of $45.08 Wednesday with a P/E ratio of 6.46 and, according to the DCF calculator, is trading with a margin of safety of 67% since its fair value is $139.1. During the last 12 months the price of the stock has risen by 23% and is now 2.81% below its 52-week high.

The company is a health care company. It develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma and other chronic conditions.

Its profitability and growth is rated 5/10 with ROE of 47.86% and ROA of 17.28% that are ranked higher than 95% of other companies in the Global Medical Instruments & Supplies industry.

The largest shareholder among the gurus is Daniel Loeb (Trades, Portfolio) with 9.75% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 2.02%, Jana Partners (Trades, Portfolio) with 1.03%, Richard Pzena (Trades, Portfolio) with 0.74%, Tweedy Browne (Trades, Portfolio) with 0.45%, Mairs and Power (Trades, Portfolio) with 0.41%, Tweedy Browne (Trades, Portfolio) Global Value with 0.2%, Steven Cohen (Trades, Portfolio) with 0.16% and Louis Moore Bacon (Trades, Portfolio) with 0.11%.

Energy Company of Parana (ELP) has a market cap of $2.26 billion. The stock had a price of $6.87 Wednesday with a P/E ratio of 4.32 and, according to the DCF calculator, is trading with a margin of safety of 48% since its fair value is $15.81. During the last 12 months the price of the stock has dropped by 26% and is now 29.28% below its 52-week high.

The company is engaged in the generation, transmission, distribution and sale of electricity mainly in the Brazilian state of Paraná. It also provides telecommunications and other services.

Its profitability and growth is rated 7/10 with ROE of 9.57% and ROA of 4.78% that are ranked higher than 58% of other companies in the Global Utilities - Diversified industry.

Charles Brandes (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.01% of outstanding shares followed by Grantham with 0.86% and RS Investment Management (Trades, Portfolio) with 0.25%.

BofI Holding Inc. (BOFI) has a market cap of $1.11 billion and a GuruFocus business predictability of 4.5 stars. The stock had a price of $17.78 Wednesday with a P/E ratio of 9.87 and, according to the DCF calculator, is trading with a margin of safety of 65% since its fair value is $50.96. During the last 12 months the price of the stock has dropped by 25% and is now 50.94% below its 52-week high.

The company through its bank holding provides diversified financial services including consumer and business banking products through the branchless distribution channels and affinity partners.

Its profitability and growth is rated 9/10 with ROE of 19.77% and ROA of 1.77% that are ranked higher than 82% of other companies in the Global Savings & Cooperative Banks industry

The largest shareholder among the gurus is Simons with 1.97% of outstanding shares followed by Jones with 0.04% and Chuck Royce (Trades, Portfolio) with 0.03%.

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