Bestiniver is a Spanish investment firm that runs the Bestinfond (Trades, Portfolio) fund, which purchased six new holdings during the third quarter, according to data reported by GuruFocus Real Time Picks.
The current allocation of the value fund is 20% to 25% in Spanish equities with the rest in foreign investments. The firm looks for companies with a competitive advantage, a good management team and good price that is trading by at least 70% less than its value. Bestinfond (Trades, Portfolio)’s approach has had an average annual return of more than 13% over the past 15 years.
The following are the six new holdings to the portfolio.
Bestinfond (Trades, Portfolio) purchased 2,686,376 shares of UBM for an average price of £5.06 per share. UBM is a live media and events-led B2B marketing and communications provider. The stock is up 16% over the past year and is currently trading at £5.10.
UBM earned 46 cents per share in 2014, up from 34 cents the year before.
Last year, the company also posted its widest operating margin in the last 12 years at 22.73%. The company currently pays a trailing dividend yield of 4.18% with a 67% payout ratio. Bestinfond (Trades, Portfolio) is currently the only guru shareholder of the company.
Telecom Italia SpA (MIL:TITR, Financial)
Bestinfond (Trades, Portfolio) bought 14,929,117 shares of Telecom Italia for an average of 94 cents euro. The company provides fixed and mobile voice and data services in its core markets of Italy, Brazil and Argentina.
Over the past year, the stock has risen 53% and now trades at €1.05, or 17x earnings. After three consecutive years of losses, Telecom Italia pulled out of the red to post earnings of 4 cents euro in 2014.
Though the company’s payout ratio is 62% with a dividend yield of 2.62%, the yield is still close to the 10-year low.
Royal UNIBREW A/S (OCSE:RBREW, Financial)
The fund also bought 167,673 shares of Danish brewing company Royal UNIBREW, which produces beverages in Western and Eastern Europe. The stock is up 37% over the last year and now trades at 275.10 kr.
The company’s EPS has been steadily increasing since 2009, posting at 11.24 kr in 2014.
Royal UNIBREW’s current liabilities were more than its current assets as of 2014, making for a weak balance sheet. Long-term debt has also more than doubled since 2012.
The dividend yield of 2.47% is close to the five-year low, while the payout ratio is 56%.
D'ieteren NV (XBRU:DIE, Financial)
Bestinfond (Trades, Portfolio) purchased 78,250 shares of D’ieteren, which distributes Volkswagen, Audi, Seat, Skoda, Bentley, Lamborghini, Porsche and Bugatti vehicle spare parts and accessories. The company traded for an average price of €33.83 during the quarter.
The stock is down 2% in the past year and now trades at €30.52. In 2014, D’ieteren posted its first loss in the past 11 years, losing 20 cents euro per share. This is down from EPS of €2.06 in 2013.
The dividend yield of 2.62% is close to the 10-year high, though the company must increase its earnings in order to continue to afford the dividend.
Inmobiliaria Colonial SA (XMCE:COL, Financial)
Bestinfond (Trades, Portfolio) bought 4,051,447 shares in Inmobiliaria Colonial for an average of 63 cents euro per share. The company is a Spanish corporation that acquires, develops and manages nonresidential properties for rental purposes.
Over the last year, the stock has increased 13% and now trades at 65 cents euro, or only 5.5x earnings. The company’s earnings have fluctuated over the years and was 23 cents euro per share in 2014. Inmobiliaria Colonial had lost more than €2.00 per share in the previous two years.
Bayerische Motoren Werke AG (XTER:BMW)
The fund’s sixth purchase was 27,417 shares in BMW, for an average price of €87.61 per share. BMW manufactures cars and off-road vehicles under the BMW, MINI and Rolls-Royce brands.
The stock is up 10% over the past year and now trades at €98.45, or 11.5x earnings. GuruFocus rates BMW’s business predictability as 3 out of 5 stars. EPS has been growing steadily since 2010, posting at €8.83 in FY 2014.
Current liabilities, however, are slightly more than current assets, indicating BMW could have difficulties covering short-term obligations. Long-term debt has also increased over the years to €41.9 billion in 2014.
BMW pays a dividend yield of 2.95% with a payout ratio of 34%.
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