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Tiziano Frateschi
Tiziano Frateschi
Articles (2110)  | Author's Website |

Mairs and Power Buys Walt Disney, Exits Baxalta

Largest trades by the firm in the 2nd quarter

Mairs and Power (Trades, Portfolio) is a small firm whose strength and success has resulted from applying a conservative growth investment approach consistently for over 70 years. During the second quarter, the firm traded the following stocks.

The fund reduced its stake in The Valspar Corp. (VAL) by 91.72%, with an impact of 0.74% on the portfolio.

The company is engaged in the manufacturing and distribution of coatings, paints and related products. The company operates its business in two reportable segments, Coatings and Paints. Third quarter adjusted diluted EPS increased 18% to $1.57. Total volumes increased 2% while net sales declined 1%. The company reported an increase of 7% for adjusted EBIT.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with ROE of 38.21% and ROA of 8.07%, which are outperforming 74% of the companies in the Global Specialty Chemicals industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.09 that is below the industry median of 0.83.

The largest shareholder among the gurus is Mairs and Power (Trades, Portfolio) with 2.32% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.1%, Meridian Funds (Trades, Portfolio) with 0.88%, Mario Gabelli (Trades, Portfolio) with 0.66%, Jim Simons (Trades, Portfolio) with 0.33% and Paul Tudor Jones (Trades, Portfolio) with 0.26%.

The firm closed its stake in Baxalta Inc. (BXLT) with an impact of -0.75% on the portfolio.

The company is engaged in developing and marketing biopharmaceuticals. The company offers biopharmaceuticals for the treatment of hemophilia, bleeding disorders, immune deficiencies, alpha-1 antitrypsin deficiency and other chronic illnesses. During the second quarter, second quarter worldwide sales totaled $2.6 billion, an increase of 4% on a reported basis and 6% on a constant currency basis, as compared to the prior-year period.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10, with ROE of 18.66% and ROA of 7.04%, which are outperforming 87% of the companies in the Global Biotechnology industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.16 that is below the industry median of 54.45.

Martin Whitman (Trades, Portfolio) is the largest shareholder among the gurus with 0.07% of outstanding shares.

The firm increased its stake in Walt Disney Co. (DIS) by 44.51%, with an impact of 0.59% on the portfolio.

The company, together with its subsidiaries, is a diversified entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. Third quarter earnings were $2.6 billion, an increase of $114 million over the prior-year quarter and diluted earnings per share (EPS) for the quarter increased 10% to $1.59 from $1.45 in the prior-year quarter.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10, with ROE of 20.66% and ROA of 10.33%, which are outperforming 83% of the companies in the Global Media – Diversified industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.26 that is below the industry median of 1.40.

The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 0.54% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.41%, Spiros Segalas (Trades, Portfolio) with 0.29%, Pioneer Investments (Trades, Portfolio) with 0.25%, Diamond Hill Capital (Trades, Portfolio) with 0.13%, Tom Gayner (Trades, Portfolio) with 0.1% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.08%.

The firm increased its stake in Roche Holding AG ADR (RHHBY) by 47.07%, with an impact of 0.57% on the portfolio.

Roche is a pharmaceutical and diagnostic company. It researches and produces medicines in oncology, infectious diseases, immunology and neuroscience.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with ROE of 48.21% and ROA of 12.44%, which are outperforming 94% of the companies in the Global Biotechnology industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.26 that is below the industry median of 50.45.

Ken Fisher (Trades, Portfolio) is the largest shareholder among the gurus with 0.22% of outstanding shares.

The firm bought 182,790 shares in Shire PLC ADR. (SHPG) with an impact of 0.45% on the portfolio.

The company is a specialty biopharmaceutical company that focuses on developing and marketing specialty medicines that address unmet patient needs.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with ROE of 7.08% and ROA of 3.31%, which are outperforming 83% of the in the Global Biotechnology industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.03 that is below the industry median of 50.45.

The largest shareholder among the gurus is John Paulson (Trades, Portfolio) with 1.73% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 0.84%, Spiros Segalas (Trades, Portfolio) with 0.78%, Andreas Halvorsen (Trades, Portfolio) with 0.39%, Daniel Loeb (Trades, Portfolio) with 0.32%, Leon Cooperman (Trades, Portfolio) with 0.07% and Julian Robertson (Trades, Portfolio) with 0.04%.

The firm reduced its stake in Emerson Electric Co. (EMR) by 15.06%, with an impact of -0.43% on the portfolio.

Emerson is engaged in designing and supplying products and technology, and delivering engineering services and solutions in industrial, commercial and consumer markets. Third quarter net sales of $5.1 billion decreased 7% and earnings per share decreased 12%. The company reported a 5% decrease for adjusted earnings per share.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with ROE of 23.10% and ROA of 8.31%, which are outperforming 82% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.48 that is below the industry median of 1.09.

T Rowe Price Equity Income Fund (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.63% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.61%, Charles Brandes (Trades, Portfolio) with 0.41%, Tweedy Browne (Trades, Portfolio) with 0.28%, Joel Greenblatt (Trades, Portfolio) with 0.16%, Barrow, Hanley, Mewhinney & Strauss with 0.15%, Charles de Vaulx (Trades, Portfolio) with 0.12%, Arnold Van Den Berg (Trades, Portfolio) with 0.03%, Ray Dalio (Trades, Portfolio) with 0.02% and Tom Gayner (Trades, Portfolio) with 0.02%.

The firm increased its stake in Hormel Foods Corp. (HRL) by 15.59%, with an impact of 0.28% on the portfolio.

Hormel is engaged in the production of meat and food products and the marketing of those products throughout the United States and internationally. Third quarter diluted earnings per share of 36 cents, up 33% from 27 cents per share and net earnings of $195.7 million, up 33% from net earnings of $146.9 million.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with ROE of 20.04% and ROA of 13.54%, which are outperforming 83% of the companies in the Global Packaged Foods industry. Financial strength has a rating of 8 out of 10, with a cash to debt ratio of 0.96 that is above the industry median of 0.64.

Another notable shareholder among the gurus is Jeremy Grantham (Trades, Portfolio) with 0.16% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.15%, Joel Greenblatt (Trades, Portfolio) with 0.04%, Tom Russo (Trades, Portfolio) with 0.03%, Chuck Royce (Trades, Portfolio) with 0.02% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

The firm increased its stake in Wells Fargo & Co. (WFC) by 14.82%, with an impact of 0.27% on the portfolio.

Wells Fargo is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions. Second quarter net income was $5.6 billion, compared with $5.7 billion in second quarter 2015 and diluted earnings per share (EPS) of $1.01, compared with $1.03.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10; with ROE of 10.72% and ROA of 1.24%, which are outperforming 67% of the companies in the Global Banks - Global industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.06 that is below the industry median of 2.13.

Warren Buffett (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 9.51% of outstanding shares, followed by Dodge & Cox with 1.34%, Barrow, Hanley, Mewhinney & Strauss with 0.75%, Chris Davis (Trades, Portfolio) with 0.48%, Ken Fisher (Trades, Portfolio) with 0.38%, PRIMECAP Management (Trades, Portfolio) with 0.37% and Tom Russo (Trades, Portfolio) with 0.3%.

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

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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