FPA Capital's Top Performing Second Quarter Sales

7 companies producing high returns

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Aug 11, 2016
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FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small to mid cap companies. During the second quarter of 2016, the firm traded some stocks. The following are the ones with the highest performance since that trade.

SM Energy Co. (SM)

The company reduced its stake in SM Energy Co by 34.16% during the second quarter and now holds 519,903 shares. Since then, the price of the stock has risen by 9%.

The company has a market cap of $2.08 billion and an enterprise value of $4.51 billion. It is an energy company engaged in the acquisition, exploration, development and production of oil, gas and NGLs in onshore North America.

The price of the stock dropped by 61% over the past five years, has risen 52% year-to-date and declined by 19% during the last 12 months. The stock is now 28.13% below its 52-week high and 334.19% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10, with a ROE of -46.95%, which is underperforming and a ROA of -15.07%, which is outperforming 60% of the companies in the global oil and gas exploration and production industry.

The largest shareholder among the gurus is Sarah Ketterer (Trades, Portfolio) with 6.16% of outstanding shares, followed by Arnold Schneider (Trades, Portfolio) with 3.35%, First Pacific Advisors (Trades, Portfolio) with 2.2%, Jim Simons (Trades, Portfolio) with 0.29% and Jeremy Grantham (Trades, Portfolio) with 0.05%.

Cimarex Energy Co. (XEC)

The company reduced its stake in Cimarex Energy by 10.02% during the second quarter and now holds 283,850 shares. Since then, the price of the stock has risen by 14%.

The company has a market cap of $12.15 billion and an enterprise value of $12.2 billion. It is an oil and gas exploration and production company with operations in two main areas: the Mid-Continent region and the Permian Basin.

The price of the stock has risen by 88% over the past five years, by 42% year-to-date and by 12% during the last 12 months. The stock is now 1.58% below its 52-week high and 75.80% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10, with  a ROE of -63.64% and a ROA of -34.16%, which are underperforming 72% of the companies in the global oil and gas exploration and production industry.

Diamond Hill Capital (Trades, Portfolio) is the largest shareholder among the gurus with 3.94% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.64%, Steven Cohen (Trades, Portfolio) with 0.57% and Charles de Vaulx (Trades, Portfolio) with 0.47%.

DeVry Education Group Inc. (DV)

The company reduced its stake in DeVry Education Group by 11.33% during the second quarter and now holds 1,242,499 shares. Since then, the price of the stock has risen by 28%.

The company has a market cap of $1.41 billion and an enterprise value of $1.06 billion. It offers programs in business, healthcare, accounting, finance, law and technology. It serves students in postsecondary education.

The price of the stock has dropped by 58% over the past five years, by 10% since the beginning of the year and by 20% during the last 12 months. The stock is now 24.70% below its 52-week high and 146.48% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10, with a ROE of 2.38% and a ROA of 1.77%, which are underperforming 66% of the companies in the global education and training services industry.

The largest shareholder among the gurus is Charles de Vaulx (Trades, Portfolio) with 12.47% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 4.38%, John Rogers (Trades, Portfolio) with 3.09% and Chuck Royce (Trades, Portfolio) with 1.4%.

Dana Inc. (DAN)

The company reduced its stake in Dana by 13.56% during the second quarter and now holds 2,113,654 shares. Since then, the price of the stock has risen by 10%.

The company has a market cap of $1.96 billion and an enterprise value of $2.86 billion. It provides technology driveline, sealing and thermal-management products for vehicle manufacturers in the light vehicle, medium/heavy vehicle and off-highway markets.

The price of the stock has risen by 1% over the past five years, dropped by 2% since the beginning of the year and by 29% during the last 12 months. The stock is now 28.95% below its 52-week high and 38.98% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10, with a ROA of 16.05%, which is outperforming and a ROE of 2.97%, which is underperforming 58% of the companies in the global auto parts industry.

The largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 3.69% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 3.51%, First Pacific Advisors (Trades, Portfolio) with 2.65%, Chuck Royce (Trades, Portfolio) with 0.73% and Donald Smith (Trades, Portfolio) with 0.64%.

Oshkosh Corp. (OSK)

The company reduced its stake in Oshkosh by 12.19% during the second quarter and now holds 211,060 shares. Since then, the price of the stock has risen by 20%.

The company has a market cap of $3.92 billion and enterprise value of $4.93 billion. Oshkosh Corp, along with its subsidiaries, designs, manufactures and markets specialty vehicles and vehicle bodies.

The price of the stock has risen by 195% over the past five years, by 37% since the beginning of the year and by 38% during the last 12 months. The stock is now 4.15% below its 52-week high and 80.20% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10, with a ROE of 10.76% and a ROA of 4.40%, which are outperforming 65% of the companies in the global truck manufacturing industry.

The largest shareholder among the gurus is Columbia Wanger (Trades, Portfolio) with 2.02% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.84%, First Pacific Advisors (Trades, Portfolio) with 0.63%, Robert Olstein (Trades, Portfolio) with 0.43% and Mairs and Power (Trades, Portfolio) with 0.26%.

ARRIS International PLC. (ARRS)

The company reduced its stake in ARRIS International by 3.02% during the second quarter and now holds 1,766,154 shares. Since then, the price of the stock has risen by 20%.

The company has a market cap of $5.2 billion and an enterprise value of $6.66 billion. It provides entertainment and communications solutions. It provides Customer Premises Equipment including set-top, gateway, DSL and cable modem and Network and Cloud, including video infrastructure.

The price of the stock has risen by 164% over the past five years, but dropped by 10% since the beginning of the year and is almost flat if compared to 12 months ago. The stock is now 17.22% below its 52-week high and 35.96% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with a ROA of -2.80% and a ROE -1.09%, which are underperforming 69% of the companies in the global communication equipment industry.

The largest shareholder among the gurus is HOTCHKIS & WILEY with 4.32% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 1.94%, Jim Simons (Trades, Portfolio) with 0.72%, Joel Greenblatt (Trades, Portfolio) with 0.33%, NWQ Managers (Trades, Portfolio) with 0.33% and Chuck Royce (Trades, Portfolio) with 0.24%.

Veeco Instruments Inc. (VECO)

The company reduced its stake in Veeco Instruments by 6.49% during the second quarter and now holds 962,000 shares. Since then, the price of the stock has risen by 14%.

The company has a market cap of $826.98 million and enterprise value of 370.8 million. It designs, manufactures and markets thin film equipment. The company's equipment is sold to make electronic devices including LED, power electronics, wireless devices, hard disk drives and semiconductors.

The price of the stock has dropped by 45% over the past five years, by 1% since the beginning of the year and by 13% during the last 12 months. The stock is now 17.54% below its 52-week high and 33.36% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 3 out of 10, with a ROE of -7.41% and a ROA of -5.85%, which are underperforming 79% of the companies in the global semiconductor equipment and materials industry.

The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 4.43% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 4.28%, Jim Simons (Trades, Portfolio) with 3.18%, FPA Capital Fund (Trades, Portfolio) with 2.37% and Arnold Schneider (Trades, Portfolio) with 0.48%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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