Wasatch International Growth is a new fund added to GuruFocus recently with the advent of the new global stock coverage. The Wasatch firm, founded in 1975 by Sam Stewart, pursues small cap stocks through fundamental, bottom-up research highlighting growth and market inefficiencies. The $1.06 billion international fund seeks these opportunities all over the world and received a Lipper Fund Award for the three-year period ended Dec. 31, 2012.
In the first quarter, fund manager Roger Edgley added 12 new stocks to the fund, for 29% quarter-over-quarter turnover.
Edgley foresees a challenging market for Japan – after strong contributions to the fund in 2012 and the first quarter – and BRIC markets, but will continue pinpointing high-quality companies at the top of their global markets in Europe, he said in his first quarter 2013 letter.
Overview of the Fund’s Largest New Buys
CALBEE Inc. (TSE:2229, Financial)
Edgley purchased 157,680 CALBEE Inc. shares with a total value of $12.79 million, a 1.6% portfolio weighting, in the first quarter.
Calbee is a Japanese health snack foods company that is 20% owned by Frito Lay and whose stock gained 60% year to date.
In fiscal year 2013, ended March 31, 2013, Calbee’s net sales increased 9.9% over the previous year to $179.4 billion yen. Net income increased 33% to $9.4 billion yen.
Calbee trades for 9,360 yen per share on Friday, close to a three-year high. This is the GuruFocus DCF fair value calculation of the company:
Calbee has a P/E of 31.1, P/B of 3.69 and P/S of 1.72.
Price and P/E ratio chart:
Diligent Board Member Services Inc. (NZSE:DIL, Financial)
Edgley purchased 3,161,599 shares of Diligent Board Member Services Inc. for a total value of $16.5 million, a 2% portfolio weighting.
Diligent Board Member Services is a software company that offers board-level consulting services, concierge-level training and support, and board communication tools. Its stock gained 50% year to date.
In the first quarter, Diligent reported an 84% revenue increase from the previous year to $15.1 million, driven by demand for its Boardbooks iPad app and its recurring revenue model. The company’s cash flow position increased by $3.1 million to $36.5 million.
Diligent revenue, earnings and price history:
Diligent on Friday trades at close to a 10-year high. This is a DFC fair value calculation:
The company has a P/E of 75.8, P/B of 81.67 (close to a five-year high) and P/S of 16.56.
Valuation chart:
Pigeon Corp. (TSE:7956, Financial)
For his largest new buy, Edgley bought 305,256 shares of Pigeon Corp., valued at $22.29 million, a 2.7% portfolio weighting.
Pigeon is a company that serves women who are pregnant and raising children, and the elderly, whose stock has gained 98% year to date.
In 2013, the company’s net sales increased 110% from the previous year, to 65.08 billion yen, beating its forecast. Net income increased 143.7% to 4.57 billion yen.
Pigeon revenue, earnings and price history:
Pigeon on Friday is trading near a 10-year high stock price. This is a DCF fair value calculation:
The company has a P/E of 33.7, P/B of 4.7 and P/S of 2.47, close to a three-year high.
Valuation chart:
See the Wasatch International Growth fund’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Wasatch International Growth.
Don’t forget to become a GuruFocus Premium Member here.
In the first quarter, fund manager Roger Edgley added 12 new stocks to the fund, for 29% quarter-over-quarter turnover.
Edgley foresees a challenging market for Japan – after strong contributions to the fund in 2012 and the first quarter – and BRIC markets, but will continue pinpointing high-quality companies at the top of their global markets in Europe, he said in his first quarter 2013 letter.
Overview of the Fund’s Largest New Buys
CALBEE Inc. (TSE:2229, Financial)
Edgley purchased 157,680 CALBEE Inc. shares with a total value of $12.79 million, a 1.6% portfolio weighting, in the first quarter.
Calbee is a Japanese health snack foods company that is 20% owned by Frito Lay and whose stock gained 60% year to date.
In fiscal year 2013, ended March 31, 2013, Calbee’s net sales increased 9.9% over the previous year to $179.4 billion yen. Net income increased 33% to $9.4 billion yen.
Calbee trades for 9,360 yen per share on Friday, close to a three-year high. This is the GuruFocus DCF fair value calculation of the company:
Calbee has a P/E of 31.1, P/B of 3.69 and P/S of 1.72.
Price and P/E ratio chart:
Diligent Board Member Services Inc. (NZSE:DIL, Financial)
Edgley purchased 3,161,599 shares of Diligent Board Member Services Inc. for a total value of $16.5 million, a 2% portfolio weighting.
Diligent Board Member Services is a software company that offers board-level consulting services, concierge-level training and support, and board communication tools. Its stock gained 50% year to date.
In the first quarter, Diligent reported an 84% revenue increase from the previous year to $15.1 million, driven by demand for its Boardbooks iPad app and its recurring revenue model. The company’s cash flow position increased by $3.1 million to $36.5 million.
Diligent revenue, earnings and price history:
Diligent on Friday trades at close to a 10-year high. This is a DFC fair value calculation:
The company has a P/E of 75.8, P/B of 81.67 (close to a five-year high) and P/S of 16.56.
Valuation chart:
Pigeon Corp. (TSE:7956, Financial)
For his largest new buy, Edgley bought 305,256 shares of Pigeon Corp., valued at $22.29 million, a 2.7% portfolio weighting.
Pigeon is a company that serves women who are pregnant and raising children, and the elderly, whose stock has gained 98% year to date.
In 2013, the company’s net sales increased 110% from the previous year, to 65.08 billion yen, beating its forecast. Net income increased 143.7% to 4.57 billion yen.
Pigeon revenue, earnings and price history:
Pigeon on Friday is trading near a 10-year high stock price. This is a DCF fair value calculation:
The company has a P/E of 33.7, P/B of 4.7 and P/S of 2.47, close to a three-year high.
Valuation chart:
See the Wasatch International Growth fund’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Wasatch International Growth.
Don’t forget to become a GuruFocus Premium Member here.
