Invesco Makes 3 New Buys

Acquisition of Swiss engineering and construction company has greatest impact on portfolio

Author's Avatar
Oct 05, 2016
Article's Main Image

Invesco European Growth Fund (Trades, Portfolio), which bounced back from a -6.21% return in 2014 to post a 4.57% gain in 2015, added three new buys – OC Oerlikon Corp. AG, Pfaffikon (XSWX:OERL, Financial), Wolters Kluwer NV (XAMS:WKL, Financial) and Pernod Ricard SA (XPAR:RI, Financial) – to its portfolio in the third quarter ended July 31.

The fund acquired a 1,506,495-share stake in Oerlikon, a Swiss engineering and construction company, for an average price of 8.74 Swiss francs ($8.94) per share. The purchase had a 1% impact on the portfolio.

Invesco is Oerlikon’s only shareholder among the gurus.

Oerlikon has a forward price-earnings (P/E) ratio of 19.05, a price-book (P/B) ratio of 2.38 and a price-sales (P/S) ratio of 1.26. GuruFocus gives Oerlikon a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10 with a return on equity (ROE) of -28.12% that is lower than 93% of the companies in the Global Diversified Industrials industry and a return on assets (ROA) of -11.08% that is lower than 91% of the companies in that industry.

02May2017151942.png

Oerlikon sold for 9.85 Swiss francs per share Wednesday. The DCF Calculator gives Oerlikon a fair value of -14.88 Swiss francs.

Invesco bought 164,525 shares of Wolters Kluwer, a publishing and information services company based in the Netherlands, for an average price of 35.43 euros ($39.64) per share. The transaction had a 0.49% impact on the guru’s portfolio.

The holding is 0.06% of Wolters Kluwer’s outstanding shares and 0.49% of Invesco’s total assets. Bestinfond (Trades, Portfolio) is the company’s leading shareholder among the gurus with 1,081,182 shares. The stake is 0.37% of Wolters Kluwer’s outstanding shares and 3.4% of Bestinfond (Trades, Portfolio)’s total assets.

Wolters Kluwer has a P/E of 24.75, a forward P/E of 17.24, a P/B of 4.63 and a P/S of 2.69. GuruFocus gives Wolters Kluwer a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 19.50% that is higher than 85% of the companies in the Global Publishing industry and ROA of 5.92% that is higher than 71% of the companies in that industry.

02May2017151943.png

Wolters Kluwer sold for 38.07 euros per share Wednesday. The DCF Calculator gives Wolters Kluwer a fair value of 16.9 euros.

Wolters Kluwer has announced its intention to purchase Emmi Solutions, a Chicago-based patient engagement software company, for $170 million.

Invesco purchased 35,116 shares of Pernod Ricard, a Paris-based producer of distilled beverages, for an average price of 97.24 euros per share. The deal had a 0.29% impact on the guru’s portfolio.

David Herro (Trades, Portfolio) is Pernod Ricard’s leading shareholder among the gurus with a stake of 2,308,000 shares. The stake is 0.87% of the company’s outstanding shares and 1.15% of Herro’s total assets.

Pernod Ricard has a P/E of 29.99, a forward P/E of 19.49, a P/B of 2.08 and a P/S of 3.36. GuruFocus gives Pernod Ricard a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10 with ROE of 7.27% that is higher than 51% of the companies in the Global Beverages – Wineries & Distilleries industry and ROA of 3.14% that is lower than 55% of the companies in that industry.

02May2017151943.png

Pernod Ricard sold for 107.7 euros per share Wednesday. The DCF Calculator gives Pernod Ricard a fair value of 38.53 euros.

In an ongoing effort to refocus its portfolio, Pernod Ricard agreed last week to sell Danish vodka brand Fris to Sazerac Co., a Louisiana-based alcoholic beverages company. The amount of the sale was not disclosed.

Also in the quarter, Invesco sold its holdings in three companies, added to its positions in 13 companies and reduced its holdings in 10 others.

Disclosure: I do not own any stocks mentioned in this article.

Start a free seven-day trial of Premium Membership to GuruFocus.