Michael Dell (Trades, Portfolio) is the founder, CEO and chairman of the board of directors for Dell (DELL, Financial), the computer company that he founded in 1984 with $1,000 in his college dorm room at the age of 19. Today, Dell has a market cap of $24 billion, with over 100,000 employees who serve the IT needs of global corporations, small and medium businesses, governments, healthcare providers, educational institutions and home computing users.
In 1998, MSD Capital was founded as an investment firm to manage the capital of Dell and his family. The firm primarily focuses on publicly traded securities, traditional private equity activities and real estate.
MSD Capital currently owns eight stocks with a valuation of $637 million.
In the fourth quarter of 2015, MSD Capital added 256,197 shares of PVH Corp. (PVH, Financial).
PVH was founded by Dramin Jones in 1881, a Prussian immigrant who started the company as D. Jones & Sons. The company became the largest shirt maker in the U.S. in the 1880s. After Jones passed away in 1903, D. Jones & Sons merged with Moses Phillips, a shirt company that began as a family business. After the companies successfully merged, Isaac Phillips, the son of Moses Phillips, met with Dutch immigrant John Manning Van Heusen, who had recently invented a soft folding collar, a new process that fused cloth on a curve that captured the stiff collar look of the era, while providing the consumer with a more comfortable fit. Phillips and Van Heusen formed an alliance in 1919 and changed the company name to PVH Corp., or Phillips Von Heusen.
PVH owns a diversified portfolio of brands which include Calvin Klein, Tommy Hilfiger, Van Heusen, Izod, Arrow, and Speedo. The company has grown to become one of the largest apparel companies in the world.
PHP has a market cap of $6.15 billion, a P/E ratio of 12.70, an enterprise value of $9.06 billion, and a dividend yield of 0.20.
Below is a Peter Lynch chart for PVH Corp.
PVH Corp has a few good signs according to GuruFocus.
The Piotroski F-Score is 7, Â which indicates a very healthy financial situation. The dividend yield is close to the three-year high, the P/E ratio is also close to the five-year low of 11.57, and the current P/E ratio is 12.78.
I believe that MSD Capital made a good investment decision to add to their stake in PVH Corp. for the following reasons:
The company's book value has been growing at an average rate of 17% over the previous 10 years.
The company is trading below its intrinsic value.
The company owns a diversified portfolio of popular products and well-known brands in the apparel industry.
The company has over 100 years of experience.
Gurus such as Joel Greenblatt (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Mariko Gordon (Trades, Portfolio), and Ray Dalio (Trades, Portfolio) have all been increasing their holdings in this company in the fourth quarter.
Cheers to your investment success.
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