Charles Brandes (Trades, Portfolio) is the chairman of Brandes Investment Partners. He started the firm in 1974. He manages multiple portfolios including US equity and Global Equity. Charles Brandes (Trades, Portfolio) is listed as #488 in the Forbes List of World's Richest People with a net worth of $2 billion. He is author of the book Value Investing Today.
He is a Benjamin Graham disciple. Brandes consistently applies value investing to all portfolios managed by the Partnership. He seeks to purchase out-of-favor securities that are trading at discounts to their intrinsic values, and then hold them until the market recognizes their true worth.
Visit Brandes' website at http://www.brandes.com/
His portfolio is composed by 162 stocks for a total value of $7,090 Mil and is mostly focused on Financial Service companies (24.8% of the stocks), then Healthcare (12.2%), Energy (11.6%) and Technology (11.6%)
During the last quarter, he bought 14 new stocks but he focused his trades on increasing positions on these 4 stocks:
Petroleo Brasileiro SA Petrobras (PBR.A)
He increased his position of 79,06% reaching a total of 43,416,400 shares with total impact of 2.16% on his portfolio.
PBR.A began operations in 1954 and has been carrying out crude oil and natural gas production and refining activities in Brazil on behalf of the government. The Company operates as an integrated oil and gas company in Brazil and internationally. Its business is structured into segments such as Exploration and Production; Refining, Transportation and Marketing; Distribution; Gas and Power; Biofuel; and International.
Since that buy, the price dropped 44%, and is now trading at $6, with a P/E of 5.40 (better then 98% of its competitors).
The company has a financial strength of 7/10, well performing compared to competitors. Profitability and growth is 5/10, with positive but not double-figure ratios: ROE and ROC of 6%, ROA of 2%. The overall situation is good compared to the industry, but the company had better times in past and the drop of the price is well justified.
Regarding financial growth, the company over the past five years had a negative growth on Revenue (-3%), on EBITDA (-16%) and on EPS (-23%). Only the Book Value increased (+19%).
The Peter Lynch Earning line gives a value of $22 (+266%), the DCF model gives a Fair Value of $11 (+83%). Both methods says the company is heavily Undervalued at current prices.
Charles Brandes is the Guru holding the largest number of shares (0.67% of Outstanding shares), followed by Dodge & Cox (0.6% of Outstanding shares) and Manning & Napier Advisors, Inc (0.21% of Outstanding shares)
Apache Corporation (APA)
He increased his position of 1080.73% reaching a total of 1,609,358 shares with a total impact of 1.28% on his portfolio
Apache Corporation is an independent energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids.
Since that buy, the price dropped 6%, and is now trading at $64, with a forward P/E of 47.39 (better then 86% of its competitors).
The company has a financial strength of 5/10, at an average level compared to competitors. Profitability and growth is 8/10, with flat or almost negative ratios: ROE and ROA at -1%, ROC at 5%. The overall situation is good compared to the industry (almost better then 75% of other companies), but the company had better times in past.
Over the past five years, the company had a positive growth on Revenue (+11%), on EBITDA (+12%) and on Book Value that increased of 15%.
The Peter Lynch Earning line gives a value of $36 (+43%), the DCF model gives a Fair Value of $2. Both methods says the company is heavily overpriced. Just the Guru Focus Fair Value (based on user votes) says the company is undervalued suggesting a price of $133.
Dodge & Cox is the Guru holding largest number of shares (4.63% of Outstanding shares), followed by Brian Rogers (1.86% of Outstanding shares) and Bill Nygren (1.06% of Outstanding shares)
Ternium SA (TX)
He increased his position of 535.67% reaching a total of 4,043,711 shares with a total impact of 0,84% on his portfolio
Ternium SA is a steel company in Latin America. The Company is engaged in manufacturing and processing flat and long steel products for customers active in the construction, home appliances, capital goods, container, food, energy and automotive industries.
Since that buy the price dropped 12%, and is now trading at 17$, with a forward P/E of 6.40 (better then 96% of its competitors)
The company has a financial strength of 8/10, at an average level compared to competitors (better just of 70% of competitors). Profitability and growth is 8/10, with positive ratios: ROE of 9%, ROA at 4%, ROC at 17%. The overall situation is much positive compared to the industry (better then 90% of other companies), but the company had better times in past.
Over the past five years, the company had a positive growth on Revenue (+14%), on EBITDA (+4.40%) and on Book Value that increased of 10%.
The Peter Lynch Earning line gives a value of $39.6 (+129%), the DCF model gives a Fair Value of $38 (+123%). Both methods says the company is heavily undervalued.
TX has a Dividend Yeld of 4.30% with a growth rate of 9.10% over the last 3 years.
Charles Brandes is the Guru holding largest number of shares (2.02% of Outstanding shares), followed by RS Investment Management (6,122 shares).
Companhia De Saneamento Basico Do Estado De Sao Paulo (SBS)
He increased his position of 378.66% reaching a total of 9,210,103 shares with a total impact of 0.65 % on his portfolio
The Company operates water and sewage systems in the State of Sao Paulo, which includes the city of Sao Paulo. As of December 31, 2013 it provided water and sewage services to residential, commercial, industrial and governmental customers in 363 of the 645 municipalities in the State of Sao Paulo, including the city of Sao Paulo.
Since that buy the price dropped 32%, and is now trading at $5, with a forward P/E of 6.40 (better then 98% of its competitors and in good level compared to history)
The company has a financial strength of 6/10, at a good level compared to competitors (better then 90% of competitors). Profitability and growth is 7/10, with positive ratios: ROE at 11%, ROA at 5%, ROC at 2050%. The overall situation is good compared to the industry (almost better then 90% of other companies) and also compared to history.
Over the past five years, the company had a positive growth on Revenue (+7%), on EBITDA (+3%) and on Book Value that increased of 10%.
The Peter Lynch Earning line gives a value of 13$ (+160%), the DCF model gives a Fair Value of 26$ (+420%). Both methods says the company is much undervalued. The Guru Focus Fair Value (based on user votes) says the company is undervalued suggesting a price of 18$ (+260%).
SBS has a Dividend Yeld of 7.20% with a growth rate of 5.40% over the last 3 years.
Paul Singer is the Guru holding largest number of shares (2.13% of Outstanding shares), followed by Jeremy Grantham (0.66% of Outstanding shares).
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