Edward Lampert (Trades, Portfolio), founder of RBS Partners LP and chairman of Sears Holdings Corp. (SHLD, Financial), invested in two stocks – Seagate Technology Inc. (STX, Financial) and Fossil Group Inc. (FOSL, Financial) – in the second quarter that are new to his portfolio.
Lampert’s portfolio reflected transactions in five stocks during the quarter.
Seagate, a California-based data storage company, held a spot in Lampert’s portfolio at one time, but he exited his position in the second quarter of 2012. Four years later, he re-entered Seagate when he acquired 484,622 shares for an average price of $24.4 per share. The acquisition had a 1.16% impact on Lampert’s portfolio.
The holding is 0.16% of Seagate’s outstanding shares and 1.16% of Lampert’s total assets. Richard Pzena (Trades, Portfolio) is Seagate’s leading shareholder among the gurus with a stake of 15,500,305 shares. The stake is 5.19% of Seagate’s outstanding shares and 2.36% of Pzena’s total assets.
Seagate has a price-earnings (P/E) ratio of 38.5, a forward P/E of 12, a price-book (P/B) ratio of 5.9 and a price-sales (P/S) ratio of 0.9. GuruFocus gives Seagate a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with return on equity (ROE) of 12.35% that is higher than 75% of the companies in the Global Data Storage industry and return on assets (ROA) of 2.80% that is higher than 50% of the companies in that industry.
Seagate sold for $31.58 per share at market close Wednesday. The DCF Calculator gives Seagate a fair value of $8.78.
Lampert purchased 194,442 shares of Fossil Group, a Texas-based company that designs and makes accessories such as watches, jewelry, sunglasses, wallets, belts and handbags, for an average price of $33.85 per share. The deal had a 0.54% impact on Lampert’s portfolio.
The holding is 0.4% of Fossil Group’s outstanding shares and 0.54% of Lampert’s total assets. Wallace Weitz (Trades, Portfolio) is Fossil Group’s leading shareholder with 891,784 shares in his portfolio. The holding is 1.85% of Fossil Group’s outstanding shares and 0.96% of Weitz’s total assets.
Fossil Group has a P/E of 10.5, a forward P/E of 16, a P/B of 1.6 and a P/S of 0.5. GuruFocus gives Fossil Group a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10 with ROE of 15.51% that is higher than 74% of the companies in the Global Footwear & Accessories industry and ROA of 6.26% that is higher than 63% of the companies in that industry.
Fossil Group sold for $30.09 per share Wednesday. The DCF Calculator gives Fossil Group a fair value of $81.99 with a 63% margin of safety.
Lampert reduced his positions in two companies in the second quarter – International Business Machines Inc. (IBM, Financial) and Seritage Growth Properties (SRG, Financial).
Lampert trimmed his holding in IBM, a technology company based in New York, by more than 11% with the sale of 70,542 shares for an average price of $149.76 per share. The transaction had a -0.95% impact on Lampert’s portfolio.
Lampert now holds 569,471 shares in IBM, which is 0.06% of IBM’s outstanding shares and 8.49% of Lampert’s total assets. Warren Buffett (Trades, Portfolio) is IBM’s leading shareholder among the gurus with a stake of 81,232,303 shares. The stake is 8.5% of IBM’s outstanding shares and 9.51% of Buffett’s total assets.
IBM has a P/E of 13, a forward P/E of 11.8, a P/B of 9.7 and a P/S of 2. GuruFocus gives IBM a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 82.97% that is higher than 99% of the companies in the Global Information Technology Services industry and ROA of 10.49% that is higher than 83% of the companies in that industry.
IBM sold for $159.05 per share Wednesday. The DCF Calculator gives IBM a fair value of $206.52 with a 23% margin of safety.
Lampert pared his holding in Seritage, a New York-based REIT, by nearly 2% with the sale of 8,257 shares for an average price of $50.17 per share. The deal had a -0.04% impact on Lampert’s portfolio.
Lampert’s holding, now 436,078 shares, is 0.78% of Seritage’s outstanding shares and 2.13% of Lampert’s total assets. Bruce Berkowitz (Trades, Portfolio) is Seritage’s leading shareholder among the gurus with a stake of 3,433,750 shares. The stake is 6.16% of Seritage’s outstanding shares and 11.79% of the guru’s total assets.
Seritage has a P/B of 3. GuruFocus gives Seritage a Financial Strength rating of 3/10 and a Profitability and Growth rating of 3/10 with ROE of -11.51% and ROA of -3.61% that are both lower than 95% of the companies in the Global REIT – Diversified industry.
Seritage sold for $46.01 per share Wednesday. The DCF Calculator gives Seritage a fair value of $-10.51.
Lampert hiked his stake in Gap Inc. (GPS, Financial), a San Francisco-based clothing retailer, by more than 5%. Lampert bought 172,543 shares for an average price of $21.42 per share. The transaction had a 0.36% impact on Lampert’s portfolio.
Lampert’s stake, now 3,428,815 shares, is 0.86% of Gap’s outstanding shares and 7.15% of the guru’s total assets. Lampert is Gap’s leading shareholder among the gurus.
Gap has a P/E of 15, a forward P/E of 15, a P/B of 4.2 and a P/S of 0.7. GuruFocus gives Gap a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10 with ROE of 27.66% that is higher than 90% of the companies in the Global Apparel Stores industry and ROA of 9.44% that is higher than 83% of the companies in that industry.
Gap sold for $26.63 per share Wednesday. The DCF Calculator gives Gap a fair value of $27.3 with a 2% margin of safety.
Disclosure: I do not own shares in any of the stocks in this article.
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