MS Global Franchise Fund (Trades, Portfolio) added to more than two dozen positions in its portfolio in the third quarter. The fund’s top eight additions were as follows:
The fund added to its position of Pernod Ricard SA (XPAR:RI, Financial), a Paris-based beverage company, by more than 40%, buying 68,398 shares for an average price of 102.98 euros ($110.66) per share. The transaction had a 1.05% impact on the portfolio.
David Herro (Trades, Portfolio) is Pernod Ricard’s leading shareholder among the gurus with a stake of 1,931,000 shares. The stake is 0.73% of the company’s outstanding shares.
Pernod Ricard has a price-earnings (P/E) ratio of 20.99, a forward P/E of 17.36, a price-book (P/B) ratio of 1.94 and a price-sales (P/S) ratio of 2.98. GuruFocus gives Pernod Ricard a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with return on equity (ROE) of 9.23% that is higher than 60% of the companies in the Global Beverages – Wineries and Distilleries industry and return on assets (ROA) of 4.01% that is higher than 52% of the companies in that industry.
Pernod Ricard sold for 97.62 euros per share Tuesday. The DCF Calculator gives Pernod Ricard a fair value of 49.76 euros.
The fund increased its stake of Unilever PLC (LSE:ULVR, Financial), a consumer goods company with offices in the Netherlands and London, by more than 17% with the purchase of 170,816 shares for an average price of 35.81 pounds ($45.58). The deal had a 1.05% impact on the portfolio.
Tweedy Browne (Trades, Portfolio) Global Value is Unilever’s leading shareholder among the gurus with a stake of 2,725,044 shares. The stake is 0.09% of the company’s outstanding shares.
Unilever has a P/E ratio of 24.04, a forward P/E of 19.05, a P/B ratio of 7.84 and a P/S ratio of 2.32. GuruFocus gives Unilever a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 33.37% that is higher than 93% of the companies in the Global Household & Personal Products industry and ROA of 9.42% that is higher than 81% of the companies in that industry.
Unilever sold for 31.11 pounds per share Wednesday. The DCF Calculator gives Unilever a fair value of 13.3 pounds.
The fund raised its position of Coca-Cola Co. (KO, Financial), the Atlanta-based beverage company, by more than 45% with the purchase of 113,029 shares for an average price of $43.82 per share. The transaction had a 0.62% impact on the portfolio.
Warren Buffett (Trades, Portfolio) is Coca-Cola’s leading shareholder among the gurus with a stake of 400 million shares. The stake is 9.27% of Coca-Cola’s outstanding shares.
Coca-Cola has a P/E ratio of 25.15, a forward P/E of 20.20, a P/B ratio of 6.87 and a P/S ratio of 4.30. GuruFocus gives Coca-Cola a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 27.91% that is higher than 91% of the companies in the Global Beverages – Soft Drinks industry and ROA of 7.80% that is higher than 68% of the companies in that industry.
Coca-Cola sold for $41.29 per share Wednesday. The DCF Calculator gives Coca-Cola a fair value of $18.82.
The fund boosted its holding of Reynolds American Inc. (RAI, Financial), a North Carolina-based tobacco company, by nearly 11% with the purchase of 74,050 shares for an average price of $50.16 per share. The deal had a 0.45% impact on the portfolio.
Barrow, Hanley, Mewhinney & Strauss is Reynolds American’s leading shareholder among the gurus with a stake of 5,095,964 shares. The stake is 0.36% of Reynolds American’s outstanding shares.
Reynolds American has a P/E ratio of 14.73, a forward P/E of 21.32, a P/B ratio of 3.66 and a P/S ratio of 6.22. GuruFocus gives Reynolds American a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 27.28% and ROA of 10.38% that are higher than 60% of the companies in the Global Tobacco industry.
Reynolds American sold for $55.4 per share Wednesday. The DCF Calculator gives Reynolds American a fair value of $48.42.
The fund increased its position of British American Tobacco PLC (LSE:BATS, Financial), a London-based tobacco company, by almost 4%, buying 33,099 shares for an average price of 48.3 pounds per share. The transaction had a 0.27% impact on the portfolio.
Causeway International Value (Trades, Portfolio) is British American Tobacco’s leading shareholder among the gurus with a stake of 2,758,881 shares. The stake is 0.15% of the company’s outstanding shares.
British American Tobacco has a P/E ratio of 18.62, a forward P/E of 17.09, a P/B ratio of 13.18 and a P/S ratio of 6.14. GuruFocus gives British American Tobacco a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 76.21% that is higher than 86% of the companies in the Global Tobacco industry and ROA of 13.43% that is higher than 67% of the companies in that industry.
British American Tobacco sold for 43.53 pounds per share Wednesday. The DCF Calculator gives British American Tobacco a fair value of 34.3 pounds.
Likewise the fund boosted its stake of Microsoft Corp. (MSFT, Financial), a technology company based in Washington state, by nearly 4% with the purchase of 36,796 shares for an average price of $56.45 per share. The deal had a 0.27% impact on the portfolio.
PRIMECAP Management (Trades, Portfolio) is Microsoft’s leading shareholder among the gurus with a stake of 56,519,174 shares. The stake is 0.73% of Microsoft’s outstanding shares.
Microsoft has a P/E ratio of 29.34, a forward P/E of 20.37, a P/B ratio of 6.79 and a P/S ratio of 5.75. GuruFocus gives Microsoft a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 22.30% that is higher than 86% of the companies in the Global Software – Infrastructure industry and ROA of 8.80% that is higher than 77% of the companies in that industry.
Microsoft sold for $61.37 per share Wednesday. The DCF Calculator gives Microsoft a fair value of $22.37.
The fund increased its holding of Reckitt Benckiser Group PLC (LSE:RB., Financial), a British consumer goods company, by nearly 4%, buying 22,153 shares for an average price of 73.91 pounds per share. The transaction had a 0.27% impact on the portfolio.
The company has a P/E ratio of 30.19, a forward P/E of 19.61, a P/B ratio of 6.42 and a P/S ratio of 5.34. GuruFocus gives the company a Financial Strength rating of 7/10 and a Profitability and Growth rating of 6/10 with ROE of 23.01% that is higher than 86% of the companies in the Global Household & Personal Products industry and ROA of 9.92% that is higher than 82% of the companies in that industry.
Reckitt Benckiser Group sold for 65.38 pounds per share Wednesday. The DCF Calculator gives Reckitt Benckiser a fair value of 32.7 pounds.
The fund boosted its position of L’Oreal SA (XPAR:OR), a French cosmetics company, by almost 4% with the purchase of 10,001 shares for an average price of 171.34 euros per share. The deal had a 0.24% impact on the portfolio.
L’Oreal has a P/E ratio of 31.41, a forward P/E of 23.20, a P/B ratio of 4.08 and a P/S ratio of 3.60. GuruFocus gives L’Oreal a Financial Strength rating of 8/10 and a Profitability and Growth rating of 9/10 with ROE of 12.67% that is higher than 68% of the companies in the Global Household & Personal Products industry and ROA of 8.47% that is higher than 77% of the companies in that industry.
L’Oreal sold for 160.8 euros per share Wednesday. The DCF Calculator gives L’Oreal a fair value of 55.84 euros.
Disclosure: I do not own any stocks mentioned in this article.
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