Oakmark International Small Cap purchased 1,046,000 shares of Cosmo Lady (HKSE:02298)Â at an average price of 5.33 Hong Kong dollars (69 cents) per share in the second quarter. The trade had a 0.02% impact on Oakmark’s portfolio.
Cosmo Lady has a market cap of 5.8 billion Hong Kong dollars, an enterprise value of 4.65 billion Hong Kong dollars, a price-earnings (P/E) ratio of 8.63 and a price-book (P/B) ratio of 1.81.
Cosmo Lady is an apparel company that produces bras, panties, sleepwear, home wear, warm clothing, and other (including leggings and tights, vests, socks and accessories) under its core brand Cosmo Lady.
According to GuruFocus Cosmo Lady has a 9 of 10 financial rating with no debt. The company has an Altman Z-Score of 6.51, indicating that it is in the safe zone and is not in danger of filing for bankruptcy in the near future. The company also has a 5 of 10 profitability and growth rating with an operating margin of 13.94%, an ROE of 22.23% and an ROC (Joel Greenblatt (Trades, Portfolio)) rating of 56.96% ranking it above 89% of the 738 companies in the global apparel manufacturing industry.
The Oakmark International Fund is led by guru David Herro (Trades, Portfolio). The fund looks to invest in good undervalued companies located outside the U.S. It likes to purchase securities that low in price but high in quality.
It’s likely that Oakmark decided to purchase a stake in Cosmo Lady because the company is trading below its intrinsic value and has a broad portfolio of products, healthy financial numbers. Its price is at a two-year low, and its dividend yield is close to a one-year high.
Cheers to your investment success.
Disclosure:Â Author does not own any shares of this company.
