Steven Romick sold out his remaining 389,330 shares in Carlsberg (OCSE:CARL B) in the second quarter at an average price of 627.11 Danish krone ($94.01) per share.
Carlsberg began its operations when its founder J.C. Jacobsen established a brewery on a hill outside of Copenhagen. Since then the company has expanded its operations and now markets and sells beer as well as soft drinks. Carlsberg has a variety of brands that includes Kronenbourg, Baltika, Holsten, Okocim, Tuborg, Lav and Ukrainian beer Lvivske. Carlsberg operates in Western Europe, Eastern Europe and Asia.
Carlsberg has a market cap of 100.38 billion krone, an enterprise value of 137.02 billion krone, a price-book (P/B) ratio of 2.33 and an operating margin of 12.94%.
Romick may have decided to sell out because the company’s revenue growth has declined by -2.50%, and its EBITDA growth -6.20% over the previous 10 years. Additionally, Carlsberg’s short-term financial results have dropped dramatically over the previous trailing 12 months. The company has lost 166.70% on its reported EPS without NRI, 68.40% EBITDA, 8.10% operating income growth and 17.10% book value growth over the previous 12 months.
Below is a Peter Lynch chart that shows Carlsberg is trading above its intrinsic value.
Romick is a defensive investor who has won multiple awards managing his FPA Crescent Fund. Since its inception in 1994, the fund has returned an estimated 10.2% which marginally outperformed the Standard & Poor's 500 during the same period.
Cheers to your investment success.
Disclosure: Author does not own any shares of this company.
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