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Tiziano Frateschi
Tiziano Frateschi
Articles (2151)  | Author's Website |

Barrow, Hanley, Mewhinney & Strauss' Best Investments This Year

Assets with the highest returns year to date

James Barrow is executive director of Dallas-based investment firm Barrow, Hanley, Mewhinney & Strauss, and is the lead portfolio manager for the Vanguard Windsor II and Selected Value Funds. The following are the top performers among his firm's investments.

Tyco International PLC. (NYSE:TYC), with a market cap of $18.62 billion, has gained 45.6% year to date. The stake represents 1.85% of the company's outstanding shares and 0.51% of the firm's total assets.

Tyco International PLC provides security, fire detection and suppression products and services and life safety products. Its brands include Tyco, SimplexGrinnell, Sensormatic, Wormald, Ansul, Simplex, Scott and ADT serve security.

It is trading with a price-earnings (P/E) ratio of 38.81. Over the last 12 months, the price has risen by 26%. It is now trading 1.28% below its 52-week high and 57.53% above its 52-week low. The stock is overpriced by 257% at $47.74. The DCF calculator gives a fair value of $13.38 while the Peter Lynch earnings line gives a fair value of $18.8.

It has a profitability and growth rating of 7 out of 10 with strong returns (ROE 12.64%, ROA 4.49%) that are outperforming 63% of the competitors in the Global Security & Protection Services industry. Financial strength has a rating of 5 out of 10 with a cash to debt ration of 0.14 that is below the industry median of 0.65.

The largest shareholder among the gurus is Dodge & Cox with 8.96% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 1.73%, Andreas Halvorsen (Trades, Portfolio) with 0.87%, Mario Gabelli (Trades, Portfolio) with 0.51%, Jana Partners (Trades, Portfolio) with 0.46% and Jeremy Grantham (Trades, Portfolio) with 0.4%.

BanColombia SA ADR. (NYSE:CIB), with a market cap of $9.37 billion, has gained 45.1% year to date. The guru's stake represents 0.01% of outstanding shares of the company.

BanColombia SA is a financial institution providing financial products and services to a diversified individual, corporate, and government customer base throughout Colombia, Latin America and the Caribbean region.

It is trading with a P/E ratio of 12.34. Over the last 12 months, the price has risen by 5%. It is now trading 8.48% below its 52-week high and 64.50% above its 52-week low. The stock is undervalued with a margin of safety of 5% at $38.97. The DCF calculator gives a fair value of $41.17. The Peter Lynch earnings line gives a fair value of $47.1.

The company has a profitability and growth rating of 7out of 10 with returns (ROE of 4.48% and ROA of 0.69%) that are outperforming 72% of competitors in the Global Banks - Regional - Latin America industry. Financial strength has a rating of 5 out of 10 with a cash to debt ratio of 0.67 that is below the industry median of 2.11.

Jim Simons (Trades, Portfolio) is the largest shareholder among the gurus with 0.1% of outstanding shares.

Xylem Inc. (NYSE:XYL), with a market cap of $8.81 billion, has gained 36.1% year to date. The guru's stake represents 0.86% of outstanding shares of the company and 0.1% of the total assets managed.

Xylem is engaged in the design, manufacture and application of engineered technologies for the water industry.

It is trading with a P/E ratio of 26.27. Over the last 12 months, the price has risen by 42%. It is now trading 7.70% below its 52-week high and 55.19% above its 52-week low. The stock is overpriced by 146% at $49.15. The DCF calculator gives a fair value of $20.1. The Peter Lynch earnings line gives a fair value of $28.1.

The company has a profitability and growth rating of 8 out of 10 with strong returns (ROE 16.08%, ROA 7.06%) that are outperforming 76% 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.

The largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 2.21% of outstanding shares, followed by Meridian Funds (Trades, Portfolio) with 0.78% and Jim Simons (Trades, Portfolio) with 0.34%.

The Scotts Miracle Gro Co Class A (NYSE:SMG), with a market cap of $5.25 billion, has gained 35.6% year to date. The guru's stake represents 1.34% of outstanding shares of the company and 0.09% of the total assets managed.

Scotts Miracle Gro Co, along with its subsidiaries, is engaged in manufacturing, marketing and selling of dry, granular slow-release lawn fertilizers, combination lawn fertilizer and control products, and continuous release garden and indoor plant foods.

It is trading with a P/E ratio of 16.95. Over the last 12 months, the price has risen by 33%. It is now trading 0.41% below its 52-week high and 39.29% above its 52-week low. The stock is overpriced by 100% at $86.64. The DCF calculator gives a fair value of $43.34. The Peter Lynch earnings line gives a fair value of $60.8.

The company has a profitability and growth rating of 7 out of 10 with strong returns (ROE 48.19%, ROA 10.46%) that are outperforming 85% of the companies in the Global Agricultural Inputs industry. Financial strength has a rating of 5 out of 10 with a cash to debt ratio of 0.05 that is below the industry median of 0.60.

First Eagle Investment (Trades, Portfolio) is the largest shareholder among the gurus with 9.4% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 2.45%, Jim Simons (Trades, Portfolio) with 0.39%, Meridian Funds (Trades, Portfolio) with 0.37%, Mario Gabelli (Trades, Portfolio) with 0.15% and Steven Cohen (Trades, Portfolio) with 0.12%.

Enersis Americas SA ADR. (ENIA), with a market cap of $8.38 billion, has gained 33.6% year to date. The guru's stake represents 0.01% of outstanding shares of the company.

Enersis Americas SA, formerly Enersis SA, through its holdings, generates, transmits and distributes electric energy in Chile, Argentina, Brazil, Colombia and Peru.

It is trading with a P/E ratio of 8.74. Over the last 12 months, the price has risen by 20%. It is now trading 6.88% below its 52-week high and 15.58% above its 52-week low. The stock is overpriced by 7% at $8.35. The DCF calculator gives a fair value of $7.98. The Peter Lynch earnings line gives a fair value of $10.7.

The company has a profitability and growth rating of 5 out of 10 with returns (ROE 12.50%, ROA 4.78%) that are outperforming 72% of the companies in the Global Utilities - Regulated Electric industry. Financial strength has a rating of 5 out of 10 with a cash to debt ratio of 0.47 that is above the industry median of 0.27.

The largest shareholder among the gurus is Jeremy Grantham (Trades, Portfolio) with 0.17% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.13%.

Qualcomm Inc. (NASDAQ:QCOM), with a market cap of $97.41 billion, has gained 33.5% year to date. The guru's stake represents 1.47% of outstanding shares of the company and 1.76% of their total assets managed.

Qualcomm Inc. develops digital communication technology called CDMA (Code Division Multiple Access), and owns intellectual property applicable to products that implement any version of CDMA including patents, patent applications and trade secrets.

It is trading with a P/E ratio of 19.28. Over the last 12 months, the price has risen by 12%. It is now trading 6.11% below its 52-week high and 56.49% above its 52-week low. The stock is overpriced by 9% at $66.1. The DCF calculator gives a fair value of $60.74. The Peter Lynch earnings line gives a fair value of $51.1.

The company has a profitability and growth rating of 8 out of 10 with strong returns (ROE 16.65%, ROA 10.17%) that are outperforming 85% of competitors in the Global Semiconductors industry. Financial strength has a rating of 7 out of 10 with a cash to debt ratio of 1.45 that is below the industry median of 1.62.

PRIMECAP Management (Trades, Portfolio) is the largest shareholder among the gurus with 1.18% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.66%, Manning & Napier Advisors Inc. with 0.63%, Jeremy Grantham (Trades, Portfolio) with 0.62%, Spiros Segalas (Trades, Portfolio) with 0.38% and Bill Nygren (Trades, Portfolio) with 0.32%.

Devon Energy Corp. (NYSE:DVN), with a market cap of $21.94 billion, has gained 31.7% year to date. The guru's stake represents 0.77% of outstanding shares of the company and 0.22% of their total assets managed.

Devon Energy Corporation is an independent energy company engaged in the exploration, development and production of oil, natural gas and NGLs.

It is trading with a price-book (P/B) ratio of 4.52. Over the last 12 months, the price has dropped by 7%. It is now trading 13.93% below its 52-week high and 131.88% above its 52-week low.

The company has a profitability and growth rating of 6 out of 10 with negative returns (ROE -140.22%, ROA -39.49%) that are underperforming 86% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 3 out of 10 with a cash to debt ratio of 0.14 that is below the industry median of 0.45.

The largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 1.67% of outstanding shares, followed by Tweedy Browne (Trades, Portfolio) with 0.72%, Jim Simons (Trades, Portfolio) with 0.67%, Richard Snow (Trades, Portfolio) with 0.31%, Tweedy Browne (Trades, Portfolio) Global Value with 0.24% and Daniel Loeb (Trades, Portfolio) with 0.22%.

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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