Steven Romick Adds Esterline, American Express to FPA Crescent

A closer look at 3 stocks added to the noted value fund

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Dec 08, 2015
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In the third quarter of 2015, guru Steven Romick bought three new holdings, adding to his award winning FPA Crescent Fund. Romick bought 2,636,450 shares of Esterline Technologies (ESL), 642,400 shares of American Express Co. (AXP), and 1,012,740 shares of Halliburton Co. (HAL).

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The company specializes in serving aerospace and defense customers. Esterline manufactures and markets avionics and controls, sensors and systems, as well as advanced materials.Â

Esterline Technologies has a market cap of $2.68 billion, a P/E ratio of 50.06, an enterprise value of $3.45 billion and a quick ratio of 1.69.

Below is a Peter Lynch chart for Esterline.

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Romick believes the aerospace industry has room for growth over the next 20 years. He further elaborates on this subject in the YouTube video below starting at 18:22.

https://www.youtube.com/watch?v=lOFt2sWHas8

Below is the price movement over time for American Express.

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American Express' main products and services are charge and credit payment card products and travel-related services offered to consumers and businesses. The company is mainly engaged in business comprising four operating segments: U.S. Card Services, International Card Services, Global Commercial Services, and Global Network & Merchant Services.Â

American Express has a market cap of $68.52 billion, a P/E ratio of 12.57, an enterprise value of $101.22 billion, a P/S ratio of 2.14 and a dividend yield of 1.56%.

Below is a Peter Lynch chart for American Express.

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Romick knows that the average person in the U.S. is in credit card debt and American Express capitalizes on this by charging interest rates on the money they lend out. American Express has a projected FCF of $102.6, meaning there’s a lot of potential for the company to have increasing cash flow. The company is also growing through margin expansion.

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Halliburton is a provider of services and products to the energy industry related to the exploration, development, and production of oil and natural gas. It serves national and independent oil and natural gas companies.Â

Halliburton has a market cap of $31.64 billion, a P/E ratio of 122.81, an enterprise value of $38.92 billion, a P/S ratio of 1.15 and a dividend yield of 2%.

Below is a Peter Lynch chart for Halliburton.

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The company focuses on two business segments: the Completion and Production segment, and Drilling and Evaluation segment. There are multiple opportunities for growth and expansion with Halliburton and Romick is a contrarian defensive investor.

Cheers to your investment success.