Causeway Capital Management co-founder Sarah Ketterer (Trades, Portfolio) gained six new holdings during the second quarter:Â Sabre Corp. (SABR, Financial), Arch Coal Inc. (ARCH, Financial), JD.com Inc. (JD, Financial), BP PLC (BP, Financial), BHP Billiton PLC (BBL, Financial) and Just Energy Group Inc. (JE, Financial).
Managing a portfolio of 83 stocks valued at $8.07 billion, Ketterer invests largely in the technology sector, which represents 27.8% of her holdings.
Sabre
In her largest new purchase for the quarter, Ketterer bought 6.8 million shares of Sabre for an average price of $22.82 per share, giving it 1.84% portfolio space.
The travel technology company has a market cap of $5.07 billion; its shares were trading around $18.20 on Tuesday with a price-earnings (P/E) ratio of 38.74, a price-book (P/B) ratio of 7.88 and a price-sales (P/S) ratio of 1.45.
The Peter Lynch chart below shows the stock is trading above its fair value.
The Texas-based company reported its second-quarter results on Aug. 1. Revenue grew 6.6% to $900.7 million. It reported a net loss of $6.5 million, or 2 cents per diluted share.
GuruFocus ranked Sabre’s financial strength 4 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield is 3.02%, and its forward dividend yield is 3.13%. The dividend payout ratio is 108%.
With 5.32% of outstanding shares, Lee Ainslie (Trades, Portfolio) is the company’s largest guru shareholder. Paul Tudor Jones (Trades, Portfolio) and Jim Simons (Trades, Portfolio) are also shareholders.
Arch Coal
Ketterer purchased 1.09 million shares of Arch Coal for an average price of $70.26 per share, giving it a portfolio weight of 0.92%.
The coal producer has a market cap of $1.83 billion; its shares were trading around $75.23 on Tuesday with a P/E ratio of 31.2, a P/B ratio of 2.35 and a P/S ratio of 0.81.
According to the Peter Lynch chart below, the stock is trading above its fair value.
The St. Louis-based company reported its second-quarter 2017 results on July 27. It posted net income of $37.2 million, down from $51.7 million in the prior-year quarter. Diluted EPS of $1.48 declined from $2.03 a year ago.
GuruFocus ranked the company’s financial strength 6 of 10 and its profitability and growth 6 of 10. The company’s trailing dividend yield is 0.47%, and its forward dividend yield is 1.86%. The dividend payout ratio is 14%.
With her purchases, Ketterer became the company’s largest guru shareholder with 4.48% of outstanding shares. Leucadia National (Trades, Portfolio), Jones and Steven Cohen (Trades, Portfolio) also own the stock.
JD.com
The investor bought 980,100 shares of JD.com for an average price of $37.80 per share. The trade expanded the portfolio 0.48%.
The Chinese online direct sales company has a market cap of $63.2 billion; its shares were trading around $44.25 on Tuesday with a forward P/E ratio of 169.49, a P/B ratio of 12.15 and a P/S ratio of 1.51.
The chart below illustrates the trend in the stock’s price over the past three years.
The retailer reported its second quarter on Aug. 14, posting revenue of $13.7 billion, which grew 43.6% from the comparable quarter of 2016. It reported a net loss of 3 cents per share.
GuruFocus ranked the company’s financial strength 5 of 10 and its profitability and growth 3 of 10. The company does not pay a dividend.
Chase Coleman (Trades, Portfolio) is the company’s largest guru shareholder with 3.08% of outstanding shares. A total of 16 gurus hold the stock.
BP
Ketterer purchased 515,839 shares of BP for an average price of $35.34 per share, giving it 0.22% portfolio space.
The oil and gas company has a market cap of $114.16 billion; its shares were trading around $34.68 on Tuesday with a P/E ratio of 29.65, a P/B ratio of 1.17 and a P/S ratio of 0.52.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
The London-based company reported its second quarter on Aug. 1. It posted a profit of $144 million for the quarter, up from a loss of $1.419 billion last year. Operating cash flow for the quarter, excluding Gulf of Mexico oil spill payments, was $6.9 billion.
GuruFocus ranked the company’s financial strength 5 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield is 6.85%, and its forward dividend yield is 6.87%. The dividend payout ratio is 205%.
Among the gurus invested in BP, Barrow, Hanley, Mewhinney & Strauss has the largest holding with 1.13% of outstanding shares. In all, 17 gurus are shareholders.
BHP Billiton
The portfolio manager bought 304,758 shares of BHP Billiton for an average price of $30.67 per share, giving it a portfolio weighting of 0.12%.
The diversified miner has a market cap of $94.22 billion; its shares were trading around $35.22 on Tuesday with a P/E ratio of 34.9, a P/B ratio of 1.6 and a P/S ratio of 3.33.
According to the Peter Lynch chart below, the stock is trading above its fair value.
The Melbourne, Australia-based company reported its full-year operational results on July 19. It achieved its annual production guidance for petroleum and iron ore, but reported lower copper and metallurgical coal volumes.
GuruFocus ranked the company’s financial strength 7 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield is 3.06% and its forward dividend yield is 3.08%. The dividend payout ratio is 65%.
With 0.08% of outstanding shares, Paul Singer (Trades, Portfolio) is the company’s largest guru shareholder. Leucadia National, Bernard Horn (Trades, Portfolio) and Simons are also shareholders.
Just Energy Group
Ketterer’s smallest new purchase for the quarter was 30,900 shares of Just Energy. She paid an average price of $5.71 per share.
The natural gas and electricity retailer has a market cap of $772.32 million; its shares were trading around $5.27 on Tuesday with a P/E ratio of 59.27 and a P/S ratio of 0.33.
The Peter Lynch chart below shows the stock is trading above its fair value.
The Canada-based company reported its results for fiscal first-quarter 2018 on Aug. 9, posting EPS of 14 cents that beat estimates of four cents. Its sales declined 6% from the comparable quarter of 2017 to $847.7 million.
GuruFocus ranked the company’s financial strength 4 of 10 and its profitability and growth 7 of 10. The company’s trailing dividend yield is 7.21% and its forward dividend yield is 7.48%. The dividend payout ratio is 106%.
With 1.55% of outstanding shares, Simons is the company’s largest guru shareholder. Jeremy Grantham (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) also own the stock.
Ketter also exited four positions during the quarter: PVH Corp. (PVH, Financial), Carnival Corp. (CCL, Financial), Fomento Economico Mexicano SAB de CV (FMX, Financial) and Imperial Oil Ltd. (IMO, Financial).
Disclosure: I do not own any stocks mentioned.
