Private Capital (Trades, Portfolio) Management (PCM) was founded in 1986 and its philosophy is to focus on fundamental value investing. PCM is owned by their portfolio manager and CEO, Gregg Powers. Widely-known for his research skill, Powers has been a key driver of PCM’s success since 1988.
The company offers clients several ways to access their value portfolios. For clients seeking an individually managed portfolio, they offer their Value Equity and Value Focus (more concentrated) portfolios, while for investors seeking a mutual fund, their offer the Private Capital (Trades, Portfolio) Management Value Fund.
The portfolio is composed of 61 stocks and has a total value of $868 Mil with 4% Q/Q turnover.
The following are the most heavily weighted trades done during Q1 of 2015.
With an impact of 3.5% on his portfolio, he sold out his stake of Cisco Systems Inc (CSCO) with total gain of 26%. The company is engaged in designing, manufacturing and selling of Internet Protocol (IP). It also provides products for transporting data, voice, and video within buildings, across campuses, and around the world. CSCO is trading with a P/E(ttm) of 16.50 (-5.84% from its 52 weeks high and +26.90% from its 52 weeks low). The company has positive returns (ROA 8.53%, ROC 324.57%) and during the last year the price rose by 16%.
With an impact of 1.7% on his portfolio, he sold out his stake of Qualcomm Inc (QCOM) with a total gain of 51%. The company develops and commercializes digital communication technology called CDMA (Code Division Multiple Access), and owns intellectual property. QCOM is trading with a P/E(ttm) of 15.90 (-18.23% from its 52 weeks high and +7.66% from its 52 weeks low). The company has positive returns (ROA 14.88%, ROC 294.93%) and during the last year the price dropped by 15%.
He increased by 40.38% his stake in Visteon Corp (VC) with an impact of 0.91% on his portfolio. After this add he holds 284,936 shares of the company that represent 0.64% of VC’s outstanding shares, or 3.17% of his total assets.
Visteon is a supplier of automotive systems, modules and components to original equipment manufacturers (OEMs) and its segments are Climate, Electronics and Interiors.
During the last 12 months the price of the stock rose by 17%; it is now trading with a forward P/E ratio of 10.70 and according to the DCF model looks heavily overpriced by 294%.
With an impact of 0.84% on his portfolio, he sold out his stake of CoreLogic, Inc (CLGX) with total gain of 45%. The company is a provider of property, financial and consumer information, analytics and services to mortgage originators and servicers, financial institutions and other businesses and government-sponsored enterprises. CLGX is trading with a P/E(ttm) of 33.60 (-5.06% from its 52 weeks high and +51.45% from its 52 weeks low). The company has positive returns (ROA 2.92%, ROC 55.73%) and during the last year the price rose by 29%.
He increased by 83.79% his stake in National Fuel Gas Co (NFG) with an impact of 0.83% on his portfolio. After this add he holds 262,867 shares of the company that represent the 0.31% of NFG’s outstanding shares or 1.83% of its total assets.
It is a diversified energy Company consisting of five business segments: the Utility segment, the Pipeline and Storage segment, the Exploration and Production segment, the Energy Marketing segment and Gathering segment.
During the last 12 months the price of the stock dropped by 19%; it is now trading with a P/E(ttm) ratio of 23.30 and according to the DCF model looks overpriced by 73%.
With an impact of 0.81% on his portfolio, he sold out his stake of Darling Ingredients Inc (DAR) with total gain of 17%. It is a developer and producer of natural ingredients from edible and inedible bio-nutrients, it also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. DAR is trading with a P/E(ttm) of 22.30 (-26.64% from its 52 weeks high and +15.44% from its 52 weeks low). The company has positive returns (ROA 2.20%, ROC 9.27%) and during the last year the price dropped by 21%.
With an impact of 0.76% on his portfolio, he sold out his stake of AutoNation Inc (AN) with total gain of 99%. It is an automotive retailer in the United States which operates 276 new vehicle franchises from 232 stores located in the United States. It also offers automotive products and services. AutoNation is trading with a P/E(ttm) of 17.00 ( -6.62% from its 52 weeks high and +35.55% from its 52 weeks low), it has positive returns (ROA 5.41%, ROC 35.46%) and during the last year the price rose by 14%.
With an impact of 0.58% on his portfolio, he sold out his stake of Ultra Petroleum Corp (UPL) with total loss of 44%. The company is an independent oil and natural gas company engaged in the acquisition, exploration, development, and production of oil and natural gas properties. UPL is trading with a P/E(ttm) of 4.70 (-52.78% from its 52 weeks high and +25.99% from its 52 weeks low) and it has positive returns (ROA 12.72%, ROC 12.18%) but during the last year the price dropped by 51%.
He bought 312,755 shares of Jamba Inc (JMBA) which is a restaurant retailer of beverages and food offerings. The company conducts various training programs for franchise partners, team members, support center staff and its leadership team on a regular basis. After this buy the price of the stock rose by 1% and is now trading with a forward P/E of 25.13 (-24.01% from its 52 weeks high and +12.92% from its 52 weeks low). It has negative returns (ROE -20.39% and ROA -5.38)Â but the Peter Lynch value gives a price of $2.5 so the stock is overpriced.
The investor now holds 1.95% of outstanding shares of the company and JMBA now comprises 0.53% of his total assets.
He reduced by 69.52% his stake in CA Inc (CA) with an impact of 0.46% on his portfolio. After this sale he holds 776,223 shares of the company that represent the 0.18% of CA’s outstanding shares or 2.92% of his total assets.
The company is a provider of enterprise information technology (IT) software and solution which organizes its offerings into three operating segments namely Mainframe Solutions, Enterprise Solutions and Services operating segments.
During the last 12 months the price of the stock rose by 4%; itis now trading with a P/E(ttm) ratio of 15.80 and according to the DCF model looks undervalued by 42%.
With an impact of 0.41% on his portfolio, he sold out his stake of Marcus Corp (MCS) with total gain of 15%. It is engaged in the lodging and entertainment industries. It is engaged mainly in two business segments: movie theatres and hotels and resorts. MCS shares are trading with a P/E(ttm) of 21.30 (-14.14% from its 52 weeks high and +31.34% from its 52 weeks low). The company has positive returns (ROA 3.26%, ROC 7.91%) and during the last year the price rose by 11%.
