Kahn Brothers (Trades, Portfolio) added to four holdings in its portfolio in the third quarter.
The largest was the purchase of 251,705 shares in GlaxoSmithKline PLC (GSK, Financial), a London-based pharmaceutical company, for an average price of $43.86 per share. The transaction had a 1.98% impact on the portfolio and raised the guru’s holding by more than 66% – to 632,040 shares, which is 4.96% of its total assets.
Ken Fisher (Trades, Portfolio) is GlaxoSmithKline’s leading shareholder among the gurus with a stake of 11,730,875 shares. The stake is 0.48% of GlaxoSmithKline’s outstanding shares and 0.98% of Fisher’s total assets.
GlaxoSmithKline has a price-earnings (P/E) ratio of 266.80, a forward P/E of 15.08, a price-book (P/B) ratio of 574.89 and a price-sales (P/S) ratio of 2.95. GuruFocus gives GlaxoSmithKline a Financial Strength rating of 4/10 and a Profitability and Growth rating of 5/10 with return on equity (ROE) of 10.70% that is higher than 63% of the companies in the Global Drug Manufacturers – Major industry and return on assets (ROA) of 0.54% that is lower than 65% of the companies in that industry.
GlaxoSmithKline sold for $39.49 per share at market close Wednesday. The DCF Calculator gives GlaxoSmithKline a fair value of $1.17.
The guru increased its stake in BlackBerry Ltd. (BBRY, Financial), a Canadian telecommunications equipment company, by more than 8% with the acquisition of 327,500 shares for an average price of $7.51 per share. The deal had a 0.47% impact on the guru’s portfolio.
Kahn Brothers (Trades, Portfolio)’ stake in BlackBerry is now 4,343,060 shares, which is 0.83% of the company’s outstanding shares and 6.28% of the guru’s total assets. PRIMECAP Management (Trades, Portfolio) is BlackBerry’s leading shareholder among the gurus with a stake of 76,722,307 shares. The stake is 14.64% of BlackBerry’s outstanding shares and 0.55% of PRIMECAP’s total assets.
BlackBerry has a forward P/E ratio of 178.57, a P/B ratio of 1.76 and a P/S ratio of 2.20. GuruFocus gives BlackBerry a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10 with ROE of -45.33% that is lower than 90% of the companies in the Global Communication Equipment industry and ROA of -25.77% that is lower than 91% of the companies in that industry.
BlackBerry sold for $7.02 per share Wednesday. The DCF Calculator gives BlackBerry a fair value of $-28.04.
BlackBerry reached a deal with Ford (F, Financial) this week that will expand the use of BlackBerry’s software in Ford vehicles.
Kahn Brothers (Trades, Portfolio) boosted its stake in BP PLC (BP, Financial), a London-based oil and gas company, by just over 4% with the purchase of 50,275 shares for an average price of $34.48 per share. The transaction had a 0.32% impact on the guru’s portfolio.
Kahn Brothers (Trades, Portfolio)’ stake in BP is now 1,304,710 shares, which is 8.31% of its total assets. Barrow, Hanley, Mewhinney & Strauss is BP’s leading shareholder among the gurus with 39,936,560 shares. The stake is 1.27% of BP’s outstanding shares and 2.16% of the guru’s total assets.
BP has a forward P/E ratio of 15.17, a P/B ratio of 1.31 and a P/S ratio of 0.63. GuruFocus gives BP a Financial Strength rating of 4/10 and a Profitability and Growth rating of 6/10 with ROE of -10.08% that is lower than 71% of the companies in the Global Oil & Gas Integrated industry and ROA of -3.70% that is lower than 75% of the companies in that industry.
BP sold for $34.01 per share Wednesday. The DCF Calculator gives BP a fair value of $-33.82.
BP reported a 48% decline in earnings in the third quarter.
The guru hiked its stake in Citigroup Inc. (C, Financial), a New York-based financial services company, by 1.30% with the purchase of 14,225 shares for an average price of $45.49 per share. The deal had a 0.12% impact on the portfolio.
Kahn Brothers (Trades, Portfolio) now holds 1,108,395 shares in Citigroup. The stake represents 9.4% of its total assets. Barrow, Hanley, Mewhinney & Strauss is Citigroup’s leading shareholder among the gurus with a stake of 20,870,998 shares. The stake is 0.73% of Citigroup’s outstanding shares and 1.35% of the guru’s total assets.
Citigroup has a P/E ratio of 10.56, a forward P/E ratio of 9.63, a P/B ratio of 0.66 and a P/S ratio of 2.02. GuruFocus gives Citigroup a Financial Strength rating of 5/10 and a Profitability and Growth rating of 5/10 with ROE of 5.94% that is lower than 67% of the companies in the Global Banks – Global industry and ROA of 0.82% that is lower than 55% of the companies in that industry.
Citigroup sold for $48.54 per share Wednesday. The DCF Calculator gives Citigroup a fair value of $49.76 with a 2% margin of safety.
Disclosure: I do not own any stocks mentioned in this article.
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