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Sally Jones
Sally Jones
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Texas Superinvestor James Barrow's Three New Holdings

May 02, 2013 | About:

In the recent portfolio update of Guru James Barrow, Executive Director of Barrow, Hanley, Mewhinney & Strauss of Dallas, Texas, GuruFocus Real Time Picks shows three new holdings. Barrow lists 159 stocks with a total value of $5.55 billion and a quarter-over-quarter turnover of 6%. The firm manages more than $65 billion in assets.

Here is the latest trading action by Guru James Barrow, who also manages his firm’s Large Cap Value & Mid Cap Value Equity Portfolio:

Delphi Automotive PLC (DLPH)

As of March 31, 2013, James Barrow bought 3,592,300 shares of auto parts maker Delphi Automotive at an average price of $40.39 for a 13.5% gain.

Delphi Automotive is a global vehicle components manufacturer and provides electrical and electronic, powertrain, safety and thermal technology solutions to the global automotive and commercial vehicle markets. Delphi customers include the 25 largest automotive original equipment manufacturers in the world. The company operates approximately 110 manufacturing facilities and 14 major technical centers and it has presence in around 30 countries. Delphi employs over 16,000 scientists, engineers and technicians focused on developing product solutions for its customers.

Yesterday Delphi Automotive reported its first quarter 2013 revenues of $4.0 billion, a decrease of 1.7% from the prior year period, the result of continued weak business conditions in Europe. The company reported first quarter U.S. GAAP net income of $276 million and earnings of $0.88 per diluted share, compared to $342 million and $1.04 per diluted share in the prior year period. Delphi’s adjusted first quarter earnings of $336 million, or $1.07 per diluted share, compared to adjusted earnings of $346 million, or $1.05 per diluted share in the prior year period.

Delphi CEO and President Rodney O'Neal commented, "Despite continued weakness in Europe, our industry-leading cost structure as well as our diverse mix of regional and customer revenues allowed us to deliver solid first quarter financial results, grow earnings per share, and increase shareholder value."

Limited Brands Inc. (LTD)

After selling off over 3 million shares in the second quarter of 2011 for a 31.1% gain, Barrow got back in the game with Limited Brands Inc. (LTD), a women’s apparel store company with a market cap of $14.53 billion. As of March 31, 2013, he holds 2,175,300 shares bought at the average price of $45.36 for an 11.2% gain. LTD is up 6% since January.

Barrow has held Limited Brands since the first quarter of 2010, with his highest gains in that quarter for 131.8%, and in second quarter 2010 for 95.7% and third quarter 2010 for a 97.9% gain.

His holding history:

Limited Brands operates as a specialty retailer of women's apparel, personal care products and accessories in the U.S. and Canada. The company runs six retail brands including: Victoria's Secret, Pink, La Senza and Bath & Body Works.

At the end of Feb. 2013, Limited Brands reported adjusted earnings per share for the 52-week year ended Feb. 2, 2013, which exclude certain significant items, were $2.92 compared to $2.60 for the year ended Jan. 28, 2012. Adjusted operating income was $1.707 billion in 2012 compared to $1.546 billion in 2011, and adjusted net income was $866.7 million compared to $817.3 million in 2011.

The company also reported a comparable stores sales increase of 6% for the 52-week year ended Feb. 2, 2013, compared to the 52 weeks ended Feb. 4, 2012. Its net sales were $10.459 billion for the 52-week year ended Feb. 2, 2013, compared to $10.364 billion for the 52 weeks ended Jan. 28, 2012.

Limited expects 2013 full-year earnings per share to be between $2.92 and $3.12, including earnings per share between $0.40 and $0.45 in the first quarter.

Total System Services, Inc. (TSS)

James Barrow also bought shares of Total System Services Inc., a business services company with a market cap of $4.42 billion. As of March 31, 2013, he holds 2,691,700 shares bought at the average price of $23.54 for a 0.2% gain. This latest trade will impact Barrow’s portfolio by 0.12%.

The current share price is $23.5 with a 0% change from average. TSS is up 1% over 12 months.

His holding history:

Total System Services is a global payment solutions provider that serves financial and non-financial institutions through three operating segments: North America Services, International Services, and Merchant Services.

The company reported results for the first quarter of 2013 with total revenue of $465 million, an increase of 0.8% as compared to same quarter 2012. Total Systems also reported first quarter 2013 basic earnings per share, excluding expenses in connection with the pending acquisition of NetSpend Holdings, Inc. (NetSpend), of $0.33, an increase of 11.5% over 2012. Basic EPS on a GAAP basis was $0.31, an increase of 2.2% over 2012. The diluted EPS was $0.30, an increase of 1.7% over 2012.

Chairman and CEO of Total Systems Services, Philip W. Tomlinson, said, “Our issuer processing business had strong same client transaction growth of 8.7% in the quarter. Excluding de-converted clients in the indirect merchant business, point-of-sale transactions increased 6.6% and sales volume in the direct merchant business was up 15.5%, including acquisitions. Also contributing to our strong results was our consolidated internal revenue growth of 3.9%, excluding the Bank of America Merchant Services de-conversion, combined with acquisitions in the acquiring space, which added 4.4% to our growth in revenues before reimbursable items…We recognized the financial results associated with our acquisition of ProPay, Inc., during the quarter and we look forward to benefiting from the new sales channels they provide in our merchant segment. Merger and acquisition expenses associated with the pending acquisition of NetSpend were $6.2 million in the quarter.”

Guru James Barrow has an excellent performance record. His Vanguard Select Value Fund outperformed the S&P 500 eight out of last 10 years with a cumulative gain of 104%, while the S&P 500 gained 34.9%.

Guru James Barrow’s top sells, buys, and holdings:

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.0/5 (2 votes)


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