POSCO $ 38.73 -1.06 (-2.66%)
POSCO News and Headlines - PKX
According to the GuruFocus All-in-One Screener as of Jan. 31, the following guru-held companies have high dividend yields but performed poorly over the past 12 months.
POSCO's (PKX) dividend yield is 4.93% and the payout ratio is 0.93. Over the past 52 weeks, the price has fallen 20.99% and shares are trading with a price-book ratio of 0.40 and a price-earnings ratio of 19.34.
The Korean steel producer has a market cap of $15.24 billion. The return on equity of 2.11% and return on assets of 1.18% are underperforming 59% of competitors. The equity-asset ratio of 0.56
Charlie Munger (Trades, Portfolio)’s dry wit and keen mind are often used in service of Berkshire Hathaway (BRK.A)(BRK.B) shareholders when he helps its chairman and CEO Warren Buffett (Trades, Portfolio) make investing decisions. The 95-year-old investor has more unilateral decision-making power over a portfolio elsewhere, however.
Munger is chairman of a California-based publishing company, Daily Journal Corp. (DJCO). There, along with the company’s vice chairman J.P. Guerin, he has a portfolio of six stocks. Four of the stocks were listed in the U.S. and, as of the end of the first quarter, were valued
The POSCO (PKX) holding was closed. The trade had an impact of -0.82% on the portfolio.
The steel producer has a market cap of $15.41 billion and an enterprise value of $27.94 billion.
GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 3.85% and return on assets of 2.14% are outperforming 52% of companies in
Few sectors are as economically sensitive as the steel industry, and even top steel producers are not immune. Pro-business tax policies, a forgiving regulatory climate and solid demand for steel-intensive business should keep the sector moving up for years to come. In an industry that produced the world’s wealthiest man at the turn of the 19th century, steel has been mostly taken for granted by the market. Steel production is now just an incidental player on a world stage that is dominated by China, the largest producer and importer of the metal.
Even with the current administration helping Nucor (NUE)
I sometimes screen for stocks that are outperforming 20-year high-quality market corporate bonds in terms of a higher earnings yield. Such research increases the chances of uncovering a value stock. The bonds are securities representing the corporate loan issued by companies that are triple-A, double-A and single-A rated.
The most recent monthly observation on the spot rate of the 20-year bond indicates a 4.57% yield. The earnings yield is the inverse of the price-earnings ratio. My screening generated three steel stocks.
POSCO (PKX) has an earnings yield of 7.87%. The stock was trading around $59.3 per share on
For the past 10 years, the portfolio Charlie Munger (Trades, Portfolio) manages at the Daily Journal (DJCO) has not changed at all. The company only owns four stocks, which it bought in the depth of the financial crisis at bargain basement prices. They are Wells Fargo (WFC) (54% of the portfolio), Bank of America (BAC) (41%), U.S. Bancorp (USB) (5%) and Posco (PKX) (0.4%).
In the years leading up to 2008, Munger sat on his hands. At that time, the Daily Journal was a highly cash-generative business, generating an average return on equity of 25% to 30%
Prem Watsa (Trades, Portfolio) is often considered the “Warren Buffett (Trades, Portfolio) of Canada” for his record of compounding Fairfax Financial’s book value by 20% annually since 1985 and his view of investing.
As a devotee of Benjamin Graham, the founder of value investing, Watsa historically purchased stakes in large stable companies and held for the long term. Lately, he has shown a penchant for buying wounded companies at low prices and waiting long periods for them to recover. One example is Blackberry, the former smartphone maker that fell from grace in 2011 when
Capital Growth Management co-founder Ken Heebner (Trades, Portfolio) initiated 21 new positions in the third quarter. Among these, he invested in five basic materials stocks: The Chemours Co. (CC), POSCO (PKX), Anglo American PLC (NGLOY), Builders FirstSource Inc. (BLDR) and Norbord Inc. (OSB).
As the name of his firm suggests, Heebner is a growth-oriented investor. Managing a fairly concentrated portfolio of 53 stocks, he invests largely in the financial services, consumer cyclical and basic materials sectors.
Heebner purchased 770,000 shares of Chemours for an average price of $47.08 per share, giving it 1.71% portfolio space.
Someone emailed me this question:
“How do you take the industry cycle into your consideration? For example, you say CRMT shouldn't trade below receivables per share. I believe it does now and people may be worried that subprime auto loans are in the beginning of down trend (or frothy). I think it may not be a concern considering the company’s track record and in the long-term view, but I'm curious how you incorporate the industry cycle into your investment decision.”
One way to think of this question is to divide up what I think about “a cyclical
Charlie Munger (Trades, Portfolio) is an investor and the business partner of the world’s most famous investor, Warren Buffett (Trades, Portfolio), but he is also among the rarified group that cleaned up during the financial crisis. The fountain of wit, wisdom and ice-cold discipline got into the market at its most despairing and quietly made a small fortune, primarily on banks, which he still owns nearly a decade later. With the rally in financials in recent months, Munger has three that continue to thrive.
Munger’s move into stocks began in 2009 after keeping most
Emerging markets continued to move higher in the face of volatility fueled by concerns over China’s economic slowdown and its implications for the global economy. It was not a smooth ride, however, as the MSCI Emerging Markets Index was down double-digits in January before reversing course.
One of the first quarter’s strongest performers was Brazil, even as it remained mired in political instability amid President Dilma Rousseff’s potential impeachment and former President Lula da Silva’s return to the limelight. Brazilian equities, as measured by the MSCI Brazil Index, gained over 28% in U.S. dollar terms. Oil-price stabilization also
Most of Third Avenue Management (Trades, Portfolio)’s largest fourth-quarter transactions were reductions of existing stakes. Third Avenue acquired five new stakes in the quarter, but most had modest impacts on the portfolio.
Third Avenue trimmed its stake in Weyerhaeuser Co. (WY), a Federal Way, Washington-based real estate investment trust, by nearly 23%. Third Avenue sold 2,660,082 shares for an average price of $30.26 per share. The transaction had a -1.98% impact on Third Avenue’s portfolio.
The remaining stake of 9,145,053 shares is 1.79% of Weyerhaeuser’s outstanding shares and 8.87% of Third Avenue’s total assets. First Eagle
Value investor and author [url=http://www.gurufocus.com/StockBuy.php?GuruName=Mohnish+Pabrai]Mohnish Pabrai[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Mohnish+Pabrai]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Mohnish+Pabrai]Portfolio[/url]) purchased a new holding in Berkshire Hathaway (BRK.B) during the fourth quarter — his only new investment during the period. Pabrai also threw in the towel with another notable holding, South Korean steel maker Posco (PKX).
Pabrai closed a previous position in Berkshire back in the first quarter, selling the holding for an average of $147.23 per share. Over the past year, [url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Warren Buffett[/url] ([url=http://www.gurufocus.com/StockBuy.php?GuruName=Warren+Buffett]Trades[/url], [url=http://www.gurufocus.com/holdings.php?GuruName=Warren+Buffett]Portfolio[/url])’s holding company has declined 15% in price, and Pabrai took the opportunity to purchase 87,006 shares during the fourth quarter for just $134.21 per share.
Although Martin Whitman (Trades, Portfolio) has a reputation for being a “buy and hold” investor, many of Third Avenue Value Fund's largest transactions in the fourth quarter, which ended Oct. 31, 2015, were reductions.
The fund’s most significant fourth-quarter transaction was the reduction, by more than 48%, of the stake in POSCO (PKX), a Pohang, South Korea-based steelmaking company. Third Avenue sold 572,600 shares for an average price of $39.14 per share. The deal had a -1.41% impact on the portfolio.
The current stake is 0.17% of the company’s outstanding shares and 1.55% of the fund's total
Dear Fellow Investor,
Non-U.S. equities finished lower in the 12 months ended September 2015. Concerns about slowing economic growth, especially in China, contributed to the decline, along with weak oil prices and uncertainties over the timing of a U.S. interest-rate increase.
European and Japanese markets fell, most significantly in the third quarter, amid fears that weakness in China and other emerging markets may weigh on exporters who rely heavily on Chinese demand. In Japan, those same fears seemed to have overshadowed renewed optimism and investor sentiment that have buoyed the market in the past two years.
Emerging markets suffered the
Prem Watsa (Trades, Portfolio)’s Fairfax Financial Holdings, a Berkshire Hathaway (BRK.A)(BRK.B)-style insurance conglomerate with a stock portfolio, purchased three new stocks in the recent quarter, one of which is a former Warren Buffett (Trades, Portfolio) holding, he reported Friday.
Watsa started positions in Altera Corp. (ALTR), Yodlee Inc. (YDLE) and POSCO (PKX), bringing his total holdings to 40 in a portfolio valued at $1.08 billion. Buffett sold his stake in steelmaker POSCO, which totaled 5.1% of its shares at the end of 2012, in March, which negatively impacted the stock. Shares have declined 43%
Value investor Mohnish Pabrai (Trades, Portfolio), managing partner of Pabrai Investment Funds, has a history of investing in out-of-favor smaller companies, but, for the first quarter in more than a year, he neither bought a new stake nor added to an existing one in his portfolio.
It has been noted, however, that he tends to maintain a concentrated portfolio, typically containing fewer than two dozen stakes. In the second quarter, the number of stakes in Mohnish Pabrai (Trades, Portfolio)’s portfolio went down by one – to seven.
Citigroup Inc. (C), a New York-based banking
Benjamin Graham is the father of value investing who, through his teachings, created an investment philosophy that has lasted over 75 years. He wrote two of the greatest investment books ever written, "The Intelligent Investor" and "Security Analyst." Some of the greatest and most profitable investment managers are students of Graham and his airs like Warren Buffett (Trades, Portfolio). Value Investing has changed from what Graham originally created, having evolving into a investment philosophy that values a business on far more than its assets. Today some investors seek out classic Graham Net Asset Stocks
Mohnish Pabrai (Trades, Portfolio) is the managing partner of Pabrai Investment Funds, which oversees a group of focused value funds. During the first quarter, Pabrai added to his holdings in two stocks, while trimming two others, according to GuruFocus Real Time Picks.
Pabrai runs a concentrated portfolio with just eight stocks; his two largest holdings are automobile companies Fiat Chrysler (FCAU) and General Motors (GM).
Pabrai increased his stake in POSCO (PKX) by almost 226% during the first quarter, adding 681,910 shares at an average price of $60.84 per share as the stock price declined. He
According to GuruFocus updates, these stocks have declined the most since Gurus have bought.
RS Investment Management (Trades, Portfolio) added to his holdings in Steel company POSCO by 184.71% during the quarter ended 09/30/2014. His purchase prices were between $71.97 and $86.37, with an estimated average price of $80.04. Since then the prices of POSCO shares have declined by -24% from the estimated average. RS Investment Management (Trades, Portfolio) owned 135,273 shares of
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