David Dreman of Dreman Value Management was interviewed by CNBC today. He remains bullish and sees windows of opportunity.
He thinks market is cheap and will be much higher in a couple of years, but with a lot more volatility than that of the past year. At this time, he will be a net buyer than a seller.
Dreman sees opportunities in Oil Services, Oil Exploitation and Development: Halliburton Company (HAL, Financial), Apache Corp. (APA, Financial), Chesapeake Energy Corp. (CHK, Financial).
He also thinks banking industry presents good opportunities: Wells Fargo & Company (WFC, Financial), The PNC Financial Services Group Inc. (PNC, Financial), JPMorgan Chase & Co. (JPM, Financial).
According to GuruFocus data, Energy and Financials are among the top sectors in which David Dreman invests his fund’s money:
Here is an overview of the stocks mentioned by David Dreman’s in the interview:
Halliburton Company (HAL)
Halliburton Company provides a variety of services, equipment, maintenance, and engineering and construction to energy, industrial and governmental customers. Halliburton Company has a market cap of $21.74 billion; its shares were traded at around $24.02 with a P/E ratio of 20.5 and P/S ratio of 1.5. The dividend yield of Halliburton Company stocks is 1.5%.
Dreman held a very small position in this stock (16,000 shares) and he has held the position since since 1999.
Click here to assess Dreman’s complete holding history in this stock.
Apache Corp. (APA)
Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. Apache Corp. has a market cap of $32.16 billion; its shares were traded at around $95.34 with a P/E ratio of 13.7 and P/S ratio of 3.7. The dividend yield of Apache Corp. stocks is 0.6%. Apache Corp. had an annual average earning growth of 16.6% over the past 10 years. GuruFocus rated Apache Corp. the business predictability rank of 3-star.
David Dreman owns 400,007 shares as of 03/31/2010, down from 430,000 shares a quarter ago. His position accounts for 0.96% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
Chesapeake Energy Corp. (CHK)
Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp. has a market cap of $16.03 billion; its shares were traded at around $24.62 with a P/E ratio of 8.5 and P/S ratio of 2.1. The dividend yield of Chesapeake Energy Corp. stocks is 1.2%. Chesapeake Energy Corp. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Chesapeake Energy Corp. the business predictability rank of 2-star.
David Dreman owns 1,156,018 shares as of 03/31/2010, down slightly from 1,211,220 shares a quarter ago. The position accounts for 0.64% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
Wells Fargo & Company (WFC)
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $142.76 billion; its shares were traded at around $27.4 with a P/E ratio of 15.7 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.7%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
David Dreman owns 1,270,150 shares as of 03/31/2010, down slightly from 1,360,248 shares of a quarter ago. The position accounts for 0.93% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
The PNC Financial Services Group Inc. (PNC)
The PNC Financial Services Group, Inc. is a diversified financial services organizations, providing regional banking, corporate banking, real estate finance, asset-based lending, wealth management, asset management and global fund services. The PNC Financial Services Group Inc. has a market cap of $31.67 billion; its shares were traded at around $60.2 with a P/E ratio of 21.1 and P/S ratio of 1.9. The dividend yield of The Pnc Financial Services Group Inc. stocks is 0.7%. The Pnc Financial Services Group Inc. had an annual average earning growth of 3.8% over the past 10 years.
David Dreman owns 517,539 shares as of 03/31/2010, down slightly from 548,972 of a quarter ago. The position accounts for 0.73% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
JPMorgan Chase & Co. (JPM)
J.P. Morgan Chase & Co. is a global financial services firm. Jpmorgan Chase & Co. has a market cap of $148.52 billion; its shares were traded at around $37.33 with a P/E ratio of 14.6 and P/S ratio of 1.5. The dividend yield of Jpmorgan Chase & Co. stocks is 0.5%.
David Dreman owns 642,659 shares as of 03/31/2010, down slightly from 679.911 shares of a quarter ago. The position accounts for 0.68% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
Conclusion
Dreman sees the market pullback as window of opportunity to buy some of the stocks that he already owns.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and David Dreman for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
He thinks market is cheap and will be much higher in a couple of years, but with a lot more volatility than that of the past year. At this time, he will be a net buyer than a seller.
Dreman sees opportunities in Oil Services, Oil Exploitation and Development: Halliburton Company (HAL, Financial), Apache Corp. (APA, Financial), Chesapeake Energy Corp. (CHK, Financial).
He also thinks banking industry presents good opportunities: Wells Fargo & Company (WFC, Financial), The PNC Financial Services Group Inc. (PNC, Financial), JPMorgan Chase & Co. (JPM, Financial).
According to GuruFocus data, Energy and Financials are among the top sectors in which David Dreman invests his fund’s money:
| Industry | 2009-12-31 | 2010-03-31 |
|---|---|---|
| Technology | 8.3% | 8% |
| Financials | 18.3% | 21.7% |
| Utilities | 3.5% | 2.6% |
| Telecommunications | 1.1% | 1.1% |
| Consumer Services | 7.6% | 8.2% |
| Health Care | 7.7% | 7.2% |
| Consumer Goods | 11.4% | 11.7% |
| Industrials | 20.7% | 20.3% |
| Basic Materials | 5.4% | 5% |
| Oil & Gas | 14.7% | 12.2% |
Here is an overview of the stocks mentioned by David Dreman’s in the interview:
Halliburton Company (HAL)
Halliburton Company provides a variety of services, equipment, maintenance, and engineering and construction to energy, industrial and governmental customers. Halliburton Company has a market cap of $21.74 billion; its shares were traded at around $24.02 with a P/E ratio of 20.5 and P/S ratio of 1.5. The dividend yield of Halliburton Company stocks is 1.5%.
Dreman held a very small position in this stock (16,000 shares) and he has held the position since since 1999.
Click here to assess Dreman’s complete holding history in this stock.
Apache Corp. (APA)
Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. Apache Corp. has a market cap of $32.16 billion; its shares were traded at around $95.34 with a P/E ratio of 13.7 and P/S ratio of 3.7. The dividend yield of Apache Corp. stocks is 0.6%. Apache Corp. had an annual average earning growth of 16.6% over the past 10 years. GuruFocus rated Apache Corp. the business predictability rank of 3-star.
David Dreman owns 400,007 shares as of 03/31/2010, down from 430,000 shares a quarter ago. His position accounts for 0.96% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
Chesapeake Energy Corp. (CHK)
Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp. has a market cap of $16.03 billion; its shares were traded at around $24.62 with a P/E ratio of 8.5 and P/S ratio of 2.1. The dividend yield of Chesapeake Energy Corp. stocks is 1.2%. Chesapeake Energy Corp. had an annual average earning growth of 14.7% over the past 10 years. GuruFocus rated Chesapeake Energy Corp. the business predictability rank of 2-star.
David Dreman owns 1,156,018 shares as of 03/31/2010, down slightly from 1,211,220 shares a quarter ago. The position accounts for 0.64% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
Wells Fargo & Company (WFC)
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $142.76 billion; its shares were traded at around $27.4 with a P/E ratio of 15.7 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.7%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
David Dreman owns 1,270,150 shares as of 03/31/2010, down slightly from 1,360,248 shares of a quarter ago. The position accounts for 0.93% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
The PNC Financial Services Group Inc. (PNC)
The PNC Financial Services Group, Inc. is a diversified financial services organizations, providing regional banking, corporate banking, real estate finance, asset-based lending, wealth management, asset management and global fund services. The PNC Financial Services Group Inc. has a market cap of $31.67 billion; its shares were traded at around $60.2 with a P/E ratio of 21.1 and P/S ratio of 1.9. The dividend yield of The Pnc Financial Services Group Inc. stocks is 0.7%. The Pnc Financial Services Group Inc. had an annual average earning growth of 3.8% over the past 10 years.
David Dreman owns 517,539 shares as of 03/31/2010, down slightly from 548,972 of a quarter ago. The position accounts for 0.73% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
JPMorgan Chase & Co. (JPM)
J.P. Morgan Chase & Co. is a global financial services firm. Jpmorgan Chase & Co. has a market cap of $148.52 billion; its shares were traded at around $37.33 with a P/E ratio of 14.6 and P/S ratio of 1.5. The dividend yield of Jpmorgan Chase & Co. stocks is 0.5%.
David Dreman owns 642,659 shares as of 03/31/2010, down slightly from 679.911 shares of a quarter ago. The position accounts for 0.68% of the $4.24 billion portfolio of Dreman Value Management.
Click here to assess Dreman’s complete holding history in this stock.
Conclusion
Dreman sees the market pullback as window of opportunity to buy some of the stocks that he already owns.
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and David Dreman for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
