During the second quarter, the Yacktman Fund (Trades, Portfolio) added to its stake in Samsung (XKRX:005935, Financial) at an average price of 1086610 Korean Won ($988.42). The trade had a 1.63% on the Yacktman Fund (Trades, Portfolio)’s portfolio. The Fund now owns 332,834 shares of the company.
Samsung began its operations under the laws of the Republic of Korea in 1969. The company operates in 3 divisions: consumer electronics (CE), information technology and mobile communications(IM) and device solution (DS). Since the company was originally founded in 1969, it has evolved into a global business that currently manages more than 200 subsidiaries across the globe. Samsung’s products include TVs, monitors, printers, refrigerators and washing machines, as well as key mobile telecommunications products like smartphones and tablets.
Samsung has a P/E ratio of 11.23, a Quick ratio of 2.20, a dividend yield of 1.65 and a PEG ratio of 0.87.
According to GuruFocus, Samsung has an 8 of 10 financial rating with a cash to debt ratio of 6.45, ranking it above 68% of the 2246 companies in the global consumer electronics industry. The company also has a 8 of 10 profitability and growth rating, with an ROA of 8.80%, ranking it above 84% of the companies in its industry.
Since the Yacktman Fund added to its stake in Samsung, the stock price has risen an estimated 17% in value. It’s likely that the Yacktman Fund decided to add to its stake in Samsung because the company is a world renowned brand that has strong financial statements and is continuing to expand its operations globally. By 2020, Samsung's goal is to achieve annual sales of $400 billion and have the Samsung brand among the global top 5 in its industry.
Below is a Peter Lynch Chart that shows Samsung is trading below its intrinsic value.
Donald Yacktman (Trades, Portfolio) founded Yacktman asset management in April 1992. On May 1, 2016, Donald Yacktman (Trades, Portfolio) moved into an advisory role for the AMG Yacktman Fund and the AMG Yacktman Focused Fund. He will remain a partner of Yacktman asset management and he will maintain his ownership stake and continue to oversee separate accounts where he has long-term relationships. Don was named “Portfolio Manager of the Year" by Morningstar for his performance in 1991. Yacktman also holds a Bachelor of Science in economics from The University of Utah and a Master of Business Administration with distinction from Harvard University. Since its inception in 1993, Yacktman Asset Management has returned an estimated 10.1% return, which marginally outperformed the Standard & Poor’s 500 during the same time period.
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Disclosure: Author does not own any shares of this company.
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