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Kyle Ferguson
Kyle Ferguson
Articles (522)  | Author's Website |

Charles Brandes Sells Out Stake in OmniVision Technologies

Company has seen significant decreases in its financial statements over the past 12 months

May 31, 2016 | About:

Guru Charles Brandes (Trades, Portfolio) sold out his 1,622,993-share stake in Omnivision Technologies (NASDAQ:OVTI) for an average price of $28.16 per share in the first quarter.

Brandes netted a 13.43% return on investment (ROI) after he increased his stake by fivefold during the third quarter of 2015.

OmniVision Technologies has a market cap of $1.76 billion, a P/E ratio of 33.77, an enterprise value of $1.18 billion and a P/B ratio of 1.47.

Brandes originally purchased a stake in OmniVision Technologies, a leading developer of advanced digital imaging solutions, in the fourth quarter of 2011. He then exited his initial stake during the first quarter of 2012.

Brandes purchased a second position in the company during the second quarter of 2012 at an average price of $16.44. Brandes continued to add to his stake in the company throughout 2012 and 2013, but he made his biggest return when he increased his stake by fivefold in the third quarter of 2015, adding 1,287,950 shares of Omnivision Technologies at an average price of $24.90.

Below is a chart that shows Brandes' trades for OmniVision Technologies.

c3a87e86901e176d7dd7e416c5e68985.png

Brandes may have sold out his position in Omnivision Technologies for the following reasons:

  • The company is trading above its current intrinsic value which means that there is no longer any margin of safety for Brandes.
  • The company has seen a significant reduction in Revenue growth (-19.30%), EBITDA Growth (-41.50%), Operating Income Growth (-54.10%), EPS without NRI Growth (-57.80%) as well as Free Cash Flow Growth (-68.70) over the previous 12 months.
  • OmniVision Technologies' gross margin has been in long-term decline at an average rate of -6.1% per year according to GuruFocus.

OmniVision Technologies is also traded in Germany.

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Gurus Paul Tudor Jones, Prem Watsa, John Hussman, Richard Snow, Barrow, Hanley, Mewhinney & Strauss and Joel Greenblatt sold out their remaning shares during the first quarter.

Brandes is a Pittsburgh native who graduated from Bucknell University. He learned about value investing from books by legendary investor Benjamin Graham. Graham is the author of "Security Analysis" and "The Intelligent Investor." Brandes has a net worth of $1.17 billion dollars according to Forbes.com.

Cheers to your investment success.

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About the author:

Kyle Ferguson
Kyle Ferguson is an investor, author of The Christian Bubble, and he is a world-renowned human and animal rights activist, and the co-founder of The Light Movement. He is outspoken, fearless, and relentless. Kyle lives in Ontario, Canada and he is dedicated to making the world a better place with love and light.

Visit Kyle Ferguson's Website


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