Jeff Auxier

Jeff Auxier

Last Update: 05-12-2017

Number of Stocks: 156
Number of New Stocks: 7

Total Value: $477 Mil
Q/Q Turnover: 2%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Jeff Auxier Watch

  • The Compounding and Value Connection


    “We believe the power of compounding is the most valuable and underappreciated investment concept.” -Jeff Auxier

      


  • Cheap Stocks With Growing EPS

    Companies with growing earnings per share (EPS) are often good investments as they can return a solid profit to investors. Here is a selection of the most undervalued companies that have five-year growing EPS, according to the DCF calculator.


    The EPS of Cal-Maine Foods Inc. (CALM) grew by 36% over the last five years.

      


  • Jeff Auxier Comments on Bank of New York

    Banks in general declined off euphoric post-election highs although Bank of New York (NYSE:BK) still sells at a significant discount to the market and will benefit greatly if interest rates normalize.

    After a difficult global earnings and revenue environment for over six quarters, we are seeing a pickup in sales and earnings for our core positions as many economies have seemed to stabilize. Domestically, the ISM services index still shows good improvement over 55%. We work hard at monitoring fundamentals to be able to catch the turn. While we are concerned with making good buys, it is also important to monitor highly valued “high expectation” stocks that can suffer painful drops when results fall short. We are looking for high integrity, dynamic management teams that can build value in any environment. We have learned over the years that having the cumulative knowledge of specific businesses, cash flows and balance sheets is far more important than being a market operator. When focusing on the power of compounding, it is critical to quantify and constantly assess risk through an in-depth knowledge of facts and valuation with a focus on the growth in underlying per share intrinsic value. At the core of mitigating risk is understanding the asset and the fundamentals. The problem with the proliferation of exchange traded funds is that nobody truly understands what they own as individual businesses. Most are following momentum. The real value added comes when markets drop and you really need to know the individual fundamentals at the height of panic. Many of the top Fund positions we have owned for 20-30 years. We want to be prepared daily and know ahead of time what we want to own. Then when the market drops we are ready to act. I love to study great coaches and in particular legendary UCLA basketball coach John Wooden who had preached that “the will to win is not nearly as important as the will to prepare to win.” We see the will to grind out daily research as integral to prepare for difficult times and improve the odds of protecting our clients’ life savings.




    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Visa

    Visa (NYSE:V) dominates the global market for electronic payments handling over half of all credit card transactions globally. The trend toward digital payments and away from cash is strong and fundamentals for global commerce and spending have been improving. Their network processes over $8 trillion in transactions annually.



    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Cerner

    Cerner (NASDAQ:CERN) is a leading healthcare information technology company which provides critical software to help automate hospitals and other healthcare providers. The stock traded down to a multiyear low valuation at year end providing for an attractive entry point to this high-quality enterprise.



    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Anthem

    Anthem (NYSE:ANTM) is a leading managed care operator which operates under the Blue Cross/Blue Shield brand. Fourth quarter net income was up 103% year over year as medical enrollment increased 3.4%. They are expecting their operating cash flow to be greater than $3.5B in 2017.


    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Oracle

    Oracle (NYSE:ORCL)’s cloud revenue growth continues to expand reaching $1.2B in the most recent quarter, a growth of 62% year over year. Oracle is selling more enterprise SaaS than any cloud services provider in the world, and claims their new Gen2 IaaS is both faster and lower cost than Amazon web services.

    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Corning

    Corning (NYSE:GLW) is engaged in the manufacturing of specialty glass. They expect their gas particulate filters to become a significant business in China following the finalization of emission-related regulations in December 2016. Corning recently made a deal to provide Gorilla Glass for moderately priced smartphones that are within the reach of many of India’s customers—the second largest smartphone market in the world.

    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Philip Morris

    Philip Morris (NYSE:PM) is working on transforming from a cigarette company to focusing on meeting the growing demand of reduced risk, smoke-free tobacco products. They estimate that about 1.4 million adults quit smoking cigarettes in 2016 and switched to their IQOS product that heats tobacco rather than burns it, and annual production capacity will grow from 7 billion units to more than 32 billion units in 2017.

    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on PepsiCo

    PepsiCo (NYSE:PEP) was the single largest contributor to US retail food and beverage growth in 2016 for the third straight year. They also announced their 45th consecutive annualized dividend increase in 2017 and are driving 3.7% organic revenue growth through healthier products.

    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Zimmer Biomet Holdings

    Zimmer Biomet (NYSE:ZBH) has a leading musculoskeletal portfolio and is the global market share leader in knees and hips. Zimmer is also predicting $2B in annual free cash flow by 2020. At year end the stock traded down to a steep discount to the market, an attractive 12 times earnings. The demographics favor hips and knees as the peak year is age 68—about the average age for baby boomers. According to the Pew Research Center, roughly 10,000 Americans turn 65 every day. Pain is a good motivator for action.

    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Medtronic plc

    Medtronic is a leader in implantable biomedical devices. Back in 2001 the stock traded at 37.5 times earnings and this past quarter traded down to 13 times earnings with a fortress balance sheet and a 7% free cash flow yield. They continue to be a leader in medical technology as their world’s smallest pacemaker, Micra, accelerates US sales driving pacemaker market growth. They generate over $5 billion in free cash flow annually.

    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier Comments on Unilever

    Unilever (NYSE:UN) is a major player in consumer goods, especially in emerging markets with leading brands like Lipton Tea, Dove, skin products company Dollar Shave Club, and Best Foods. Kraft Heinz made an offer to buy the company for $143 billion. Although it was rejected, it motivated the company to aggressively restructure, benefiting shareholders.


    From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management first quarter 2017 shareholder letter.   


  • Jeff Auxier's Spring 2017 Market Commentary

    The excitement surrounding the Trump agenda died down as political gridlock dramatically slowed proposed policy changes. The priorities of job creation and economic growth with pro-business policies favoring deregulation helps to incentivize small business growth and the overall economy, but it cannot happen overnight. New proposed changes in the tax code including a lower tax on “pass-through” entities will provide tremendous incentives to start up a business. I remember investing in 1986 after oil prices dropped over 60%, then tax rates were slashed under the Tax Reform Act of 1986 which was the largest simplification of the US tax code in history. The country added over two million businesses during the decade. The economy surged, earnings and sales improved overall and longer-term interest jumped over 2.75% in less than 18 months. Our quality, cash-rich franchises enjoyed strong performance with double play returns—earnings acceleration and price earnings expansion. Although the booming share prices suffered a setback—specifically, the severe crash in the fall of 1987—the underlying economy remained solid. Thoughtful deregulation also tends to be a positive to new business formation as heavy regulation negatively impacts small businesses disproportionately. In 1996, deregulation of the telecom industry unleashed many new companies which helped to drive the economy and entrepreneurial spirit. Going forward, the price of free markets tends to be greater volatility—both up and down. As Peter Lynch would say, the key organ to successful investing is the stomach, which is needed to endure painful downturns.


    The Great Equity Shrink

      


  • Jeff Auxier Reduces, Exits Multiple Positions in 4th Quarter

    Jeff Auxier (Trades, Portfolio) is the founder of Auxier Asset Management. His portfolio consists of 152 stocks with a total value of $460 million. During the fourth quarter of 2016, the guru sold shares in the following stocks:


    The guru reduced his holding of Quest Diagnostics Inc. (NYSE:DGX) by 22.34%. The trade had an impact of -0.29% on the portfolio.

      


  • Jeff Auxier Invests in Gilead, Wells Fargo, Apple

    Jeff Auxier (Trades, Portfolio) is the manager of Auxier Focus Fund. He manages a portfolio composed of 152 stocks with a total value of $460 million. In the fourth and third quarters of 2016 the guru bought shares in the following stocks:


    Gilead Sciences Inc. (GILD)

      


  • Jeff Auxier Buys Cerner, Yum China and Granite Construction

    Auxier Asset Management President and CEO Jeff Auxier (Trades, Portfolio) gained three new holdings in the final quarter of 2016. They are Cerner Corp. (NASDAQ:CERN), Yum China Holdings Inc. (NYSE:YUMC) and Granite Construction Inc. (NYSE:GVA).


    Auxier founded his firm in 1998 in Oregon. The firm uses a value-oriented approach to evaluate companies. Auxier likes compelling, undervalued companies that possess strong or improving fundamentals, consistent operating results, a substantial competitive advantage, strong returns on capital and understandable products. He also values honest and shareholder-oriented management teams that have good capital allocation policies.

      


  • Jeff Auxier's Year-End 2016 Market Commentary

    Donald Trump’s November 8 election confounded most experts in Washington, D.C. and on Wall Street. Our stock and bond markets reacted decisively to Trump’s proposed pro-growth agenda focused on stimulating the economy and domestic jobs. High on his policy wish list are tax cuts, rollbacks in onerous regulations, renegotiation of trade deals and a large increase in infrastructure spending promoting construction jobs. Infrastructure investment has dropped to under 14% of GDP vs. 48% in China. To incentivize business spending, Team Trump is talking of a one year expensing option for depreciable property. There is a push to lower taxes on individuals, corporations and capital gains. To pay for tax cuts, a 20% border tax on imports has been discussed as well as reduction in the deductibility of business interest. These policies appear very positive for new business formation, particularly of smaller ones.

      


  • Time to Plan for Your Annual Omaha Trip: 2017 GuruFocus Value Conference

    It is now time to plan for your annual Omaha trip to Berkshire Hathaway meeting in May. If you are going, make sure to join us at 2017 GuruFocus Value Conference.


    Register now before the seat runs out.

      


  • 7 Low P/S Stocks With a Rising 10-Year Price

    According to GuruFocus' All-in-One Screener, the following stocks with market caps above $5 billion look cheap since they are trading with a very low price-sales (P/S) ratio.


    CAE Inc. (NYSE:CAE) is trading at about $14 with a P/S ratio of 1.94, a trailing 12-month price-earnings (P/E) multiple of 22.18 and an estimated forward P/E multiple of 17.38. The company has a market cap of $3.77 billion and the stock has risen at an annualized rate of 5% over the last 10 years.

      


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