The Technology sector occupies the most heavily weighted spot in Paul Singer (Trades, Portfolio)’s portfolio, and three of his five largest transactions in the first quarter clearly reflected that preference.
Singer’s largest transaction of the quarter, however, was the sale of his 2,469,900-share stake in SPDR Select Sector Fund – Energy Select Sector (XLE, Financial). Singer received an average price of $58.01 in a divestiture that had a -1.82% impact on his portfolio.
SPDR Select Sector Fund sold for $66.54 per share Friday.
Singer invested in a 4,634,933-share stake in Qlik Technologies Inc. (QLIK, Financial), a Radnor, Pennsylvania-based software company. Singer paid an average price of $25.05 per share. The acquisition had a 1.44% impact on his portfolio.
The stake is 4.93% of Qlik’s outstanding shares and 1.44% of Singer’s total assets. Singer is Qlik’s leading shareholder among the gurus.
Qlik has a forward P/E of 66.7, a P/B of 7.9 and a P/S of 4.3. GuruFocus gives Qlik a Financial Strength rating of 7/10 with no debt and a Profitability and Growth rating of 6/10 with ROE of -10.09% that is lower than 75% of the companies in the Global Software – Infrastructure industry and ROA of -5.62% that is lower than 72% of the companies in that industry.
Qlik sold for $29.41 per share Friday. The DCF Calculator gives Qlik a fair value of $-3.75.
The guru sold his 2,055,000-share stake in VMware Inc. (VMW, Financial), a computer software company based in Palo Alto, California, for an average price of $49.61 per share. The divestiture had a -1.42% impact on Singer’s portfolio.
VMware’s leading shareholder among the gurus is Dodge & Cox with a stake of 9,164,491 shares. The stake is 2.16% of VMware’s outstanding shares and 0.47% of Dodge & Cox’s total assets.
VMware has a P/E of 25.9, a forward P/E of 14.1, a P/B of 3 and a P/S of 3.7. GuruFocus gives VMware a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10 with ROE of 12.51% that is higher than 70% of the companies in the Global Software – Infrastructure industry and ROA of 6.33% that is higher than 68% of the companies in that industry.
VMware sold for $58.54 per share Friday. The DCF Calculator gives VMware a fair value of $64.34 with a 9% margin of safety.
The guru raised his stake in Allergan PLC (AGN, Financial), a pharmaceutical company with offices in Dublin and New Jersey, by nearly 24% with the purchase of 476,551 shares. Singer paid an average price of $286.72 per share in a transaction that had a 1.37% impact on his portfolio.
The stake, now 2,497,051 shares, is 0.63% of Allergan’s outstanding shares and 7.18% of Singer’s total assets. Vanguard Health Care Fund (Trades, Portfolio) is Allergan’s leading shareholder among the gurus with a stake of 11,187,547 shares. The stake is 2.83% of Allergan’s outstanding shares and 6.62% of Vanguard’s total assets.
Allergan has a P/E of 20.2, a forward P/E of 15.7, a P/B of 1.2 and a P/S of 4.9. GuruFocus gives Allergan a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10 with ROE of 5.87% that is lower than 54% of the companies in the Global Drug Manufacturers – Specialty & Generic industry and ROA of 3.38% that is lower than 52% of the companies in that industry.
Allergan sold for $225.72 per share Friday. The DCF Calculator gives Allergan a fair value of $-60.57.
Singer boosted his stake in Symantec Corp. (SYMC, Financial), a computer software company based in Mountain View California, by nearly 131%. He purchased 6,527,275 shares for an average price of $19.28 per share. The deal had a 1.29% impact on Singer’s portfolio.
The stake, now 11,527,275 shares, is 1.88% of Symantec’s outstanding shares and 2.27% of Singer’s total assets. Dodge & Cox is Symantec’s leading shareholder among the gurus with a stake of 73,658,375 shares. The stake is 12.03% of Symantec’s outstanding shares and 1.32% of Dodge & Cox’s total assets.
Symantec has a P/E of 5.4, a forward P/E of 18.8, a P/B of 3.4 and a P/S of 2.9. GuruFocus gives Symantec a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10 with ROE of 46.43% that is higher than 96% of the companies in the Global Software – Application industry and ROA of 20.01% that is higher than 94% of the companies in that industry.
Symantec sold for $20.43 per share Friday. The DCF Calculator gives Symantec a fair value of $-10.59.
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