One of our newest international gurus, Francisco Garcia Paramés, reported his second quarter portfolio changes today. Paramés is a self-taught value investor from Madrid, Spain, who strictly adheres to the value management of Graham, Buffett and Lynch. The guru is the chief investment officer of Bestinver Asset Management and has often been referred to as the “Spanish Warren Buffett.”
During the second quarter the Spanish guru sold out of four companies and bought into ten new ones. As of the close of the second quarter, Paramés’ portfolio contained 107 international and US-based stocks valued at over $1.88 billion.
Bayerische Motoren Werke AG (XTER:BMW3)
Francisco Paramés’ largest position is in the German auto maker Bayerische Motoren Werke (XTER:BMW3) where the guru holds on to 1,814,112 shares of the company’s stock. His position in BMW represents 6.8% of his total portfolio.
BMW was Paramés’ largest position last quarter as well, and over the second quarter he cut his stake by -7.06%. The guru sold a total of 137,718 shares in the price range of €66.75 to €71.69, with an estimated average quarterly price of €70.12. Since then the price per share has increased approximately 2.4%.
Paramés has held a position in BMW since 2012Q2 and has seen average gains of around 62%. The guru’s historical holding history as of the close of the second quarter:
Bayerische Motoren Werke, or BMW, manufactures automobiles and motorcycles worldwide. The company's activities are divided into three segments: Automobiles, Motorcycles and Financial Services.
BMW3’s historical revenue and net income:
The analysis on BMW reports that the company’s operating margin expanding, its revenue has been in decline over the past year and its price is nearing a 10-year high.
Francisco Garcia Paramés is the only guru shareholder of XTER:BMW3.
The Peter Lynch Chart suggests that the company is currently undervalued:
Bayerische Motoren Werke has a market cap of €53.78 billion. Its shares are currently trading at around €90.97 with a P/E ratio of 11.10, a P/S ratio of 0.70 and a P/B ratio of 1.54. The dividend yield at BMW is 2.18% and the company had an annual average earnings growth of 1.10% over the past ten years.
GuruFocus rated BMW the business predictability rank of 2-star.
Wolters Kluwer NV (XAMS:WKL)
The guru’s second largest position is in Wolters Kluwer where he owns 5,545,252 shares of the company’s stock. His position in the company represents 6.4% of his total portfolio and 1.88% of the company’s shares outstanding.
Paramés increased his position in Wolters Kluwer 5.78% over the first quarter by purchasing 302,835 shares of the company’s stock. He bought this stock in the price range of €19.70 to €22.27, with an estimated quarterly price of €20.99. Since then the price per share has dropped approximately -0.7%.
The guru has held a position in the company since 2012Q2, and has seen average gains of 53%. Paramés’ historical holding history:
Wolters Kluwer is a leading global information services and publishing company. The company provides products and services globally for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors.
Wolters Kluwer’s historical revenue and net income:
Francisco Garcia Paramés is the only guru shareholder of XAMS:WKL.
The analysis on Wolters Kluwer reports that the company’s operating margin is expanding, its dividend yield is at a 5-year low and its price is near a 5-year high.
The Peter Lynch Chart suggests that the company currently appears to be overvalued:
Wolters Kluwer has a market cap of €6.11 billion. Its shares are currently trading at around €20.85 with a P/E ratio of 18.10, a P/S ratio of 1.75 and a P/B ratio of 3.89. The company had an annual average earnings growth of 4.3% over the past ten years.
GuruFocus rated the company the business predictability rank of 2.5-star.
Thales (XPAR:HO)
Francisco Paramés’ third largest holding is in Thales where he holds on to 1,837,329 shares of the company’s stock. His position in Thales represents 4.7% of his total portfolio and 0.97% of the company’s shares outstanding.
During the second quarter Paramés increased his position 4.40% by increase 83,049 shares of Thales stock. He sold these shares in the second quarter price range of €43.49 to €49.86, with an estimated average quarterly price of €45.55 per share. Since then the price per share is down about -5.3%.
Paramés’ holding history as of the close of the second quarter:
Thales is a French multinational company that designs and builds electrical systems and provides services for the aerospace, defense, transportation and security markets.
Thales’ historical revenue and net income:
The analysis on Thales reports that the company’s price is near a 10-year high and its P/S ratio is near a 5-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Thales has a market cap of €8.72 billion. Its shares are currently trading at around €43.15 with a P/E ratio of 15.20, a P/S ratio of 0.61 and a P/B ratio of 2.23. The company had an annual average earnings growth of 87.80% over the past five years.
EXOR Spa (MIL:EXO)
Paramés’ fourth largest position is in EXOR where the guru holds on to 2,471,929 shares. His holdings make up for 3.9% of his total portfolio and 1.11% of the company’s shares outstanding.
Over the duration of the quarter the guru reduced his position -15.36% by selling a total of 448,567 shares. He sold these shares in the price range of €29.56 to €33.09, with an estimated average quarterly price of €31.61. Since then the price per share has decreased about -7.7%.
Paramés bought into the company in the second quarter of 2013, and since then has seen average gains of 40% on his shares bought. Paramés’ historical holding history as of the first quarter:
EXOR S.p.A. is one of Europe’s leading investment companies and is controlled by the Agnelli Family. It has a net asset value of over 8.5 billion euros. EXOR makes long-term investments focused on global companies in diversified sectors, mainly in Europe in the U.S.
EXOR’s historical revenue and net income:
The analysis on EXOR reports that the company has issued EUR11.2 billion of debt over the past three years, its Piotroski F-Score is high and its per share revenue has been in decline over the past year. The analysis also notes that the company’s dividend yield is near a 3-year low and its price is near a 10-year high.
The Peter Lynch Chart suggests that the company is currently undervalued:
EXOR S.p.A. has a market cap of €6.38 billion. Its shares are currently trading at around €29.17 with a P/E ratio of 3.20, a P/S ratio of 0.06 and a P/B ratio of 1.00. The company had an annual average earnings growth of 25.70% over the past five years.
Hyundai Motor (XKRX:005387)
Paramés fifth largest holding goes to Hyundai Motor Co, as traded on the South Korean markets. The guru holds on to 638,289 shares of the company’s stock, representing 3.9% of his total assets managed.
Over the past quarter Paramés upped his stake 7.18% by purchasing 42,777 shares of the company’s stock. He bought these shares near the average quarterly price of â‚©151592 per share, and since then the price per share is up approximately 12.5%.
Paramés’ historical holding history of Hyundai Motor:
Hyundai Motor Company manufactures and distributes motor vehicles and vehicle parts. Its business is segmented into two - Vehicle and Finance.
Hyundai Motor’s historical revenue and net income:
The GuruFocus analysis on Hyundai Motor reports that the company’s asset growth has been faster than its revenue growth over the past three years, indicating that the company could be getting less efficient.
Check out Hyundai in comparison to its competitors:
Hyundai Motors is currently trading around â‚©170500 with a P/E ratio of 2.81. The company also has a dividend yield of 1.02%.
Check out the entirety of Francisco Garcia Paramés’ second quarter portfolio.
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