In spite of a "very cautious view of financial markets" and
financially ballasting smartphone maker BlackBerry (
), stock buying at
's Fairfax Financial (
) was relatively normal in the third quarter, with six new holdings
added to the portfolio, according to the latest report. Watsa also
shifted some sector weightings from the previous quarter. The guru
pulled back on communication services, healthcare and financial
services, and increased his portfolio's exposure to basic materials
from 15.3% to 24.2%, energy from 9.5% to 16.6% and consumer
cyclical from 3.6% to 6.1%.
The total fair value of Watsa's long portfolio of 42 stocks is $1.6
billion, with 0% quarter-over-quarter turnover.
Watsa's New Buys
K12 Inc. (
Watsa bought 33,133 shares of K12 Inc. (
), comprising 0.064% of his portfolio. The third quarter's share
price averaged $32; shares declined 35% from the average.
K12 is a technology-based educational company that helps students
improve their potential by focusing on their individual needs.
K12 Inc. has a market cap of $860.700 million; its shares were
traded at around $20.90 with a P/E ratio of 44.70 and P/S ratio of
1.00. K12 Inc. had an annual average earnings growth of 17.40% over
the past five years.
In the company's first quarter 2013 ended Sept. 30, 2013, K12
reported a 3.3% year-over-year revenue increase to $228.4 million,
and a net loss of $5.0 million, or $0.13 per share, compared to net
income of $4.4 million. It has cash on its balance sheet of $163.5
million, down 9.9% from the previous quarter.
Rue21 Inc. (RUE)
Watsa purchased 21,000 shares of rue21 Inc. (RUE), comprising
0.053% of his portfolio. In the third quarter the share price
averaged $41; it has gained 1% from the average.
Rue21 is a trendy fashion retailer. The company was purchased by
global private equity firm Apax Partners for $42 per share in cash
on Oct. 10.
Onyx Pharmaceuticals Inc. (ONXX)
Watsa purchased 4,500 shares of Onyx, comprising 0.035% of his
portfolio. The third quarter share price averaged $127; the price
has declined 2% from the average.
Onyx Pharmaceuticals focused on treatments for individuals with
cancer. The company was purchased by Amgen on Oct. 1 through a
tender offer for $125 per share in cash, or $10.4 billion.
Spreadtrum Communications Inc. (
Watsa purchased 16,500 shares of Spreadtrum Communications Inc. (
), comprising 0.031% of his portfolio. The share price average in
the third quarter was $30; the price has increased 3% from the
China's Spreadtrum is a fables semiconductor company making
chipsets for smartphones and electronics with 2G, 3G and 4G
Spreadtrum Communications Inc. has a market cap of $1.46 billion;
its shares were traded at around $30.53 with a P/E ratio of 17.70
and P/S ratio of 1.70. The dividend yield of Spreadtrum
Communications Inc. stocks is 1.20%.
In the third quarter, Spreadtrum's revenue increased 56.1% year
over year to $293.3 million. GAAP net income increased 52.4% year
over year to $35.7 million, or $0.71 per basic and diluted share.
Spreadtrum had $139.7 million at quarter-end, declined from $201.7
million in the second quarter.
NewMarket Corporation (
Watsa bought 750 shares of NewMarket Corporation, comprising 0.014%
of his portfolio. The share price averaged $278 in the third
quarter; it has increased 16% from the average.
NewMarket is a holding company owning businesses within the
petroleum additives industry, such as Afton Chemical, Ethyl, New
Market Services and NewMarket Development.
Newmarket Corporation has a market cap of $4.26 billion; its shares
were traded at around $321.28 with a P/E ratio of 16.30 and P/S
ratio of 1.90. The dividend yield of Newmarket Corporation stocks
is 1.10%. Newmarket Corporation had an annual average earnings
growth of 26.40% over the past 10 years. GuruFocus rated Newmarket
Corporation the business predictability rank of 4-star.
For the third quarter, NewMarket reported $580.5 million in
revenue, down from $551.2 million in the third quarter 2012. Net
income increased to $78.9 million from $64.7 million in the same
periods. Its quarter-end cash balance amounted to $247.27 million,
increased from $89.13 million at year-end 2012.
BP PLC (
Watsa bought 5,000 shares of BP PLC (
), comprising 0.013% of shares outstanding. The price averaged $42
in the third quarter and has increased $12% from the average.
BP is a global oil and gas company making transportation fuel,
lubricants and petrochemicals, with operations in over 80
BP PLC has a market cap of $147.34 billion; its shares were traded
at around $46.92 with a P/E ratio of 6.30 and P/S ratio of 0.38.
The dividend yield of BP PLC stocks is 4.70%.
For the third quarter, BP announced $98.2 billion in revenue, an
increase from $94.4 billion for the third quarter 2012. Net income
declined to $3.5 billion, or $1.11 per diluted share, from $5.28
billion, or $1.70 per diluted share for the second quarter 2012.
Its cash balance at quarter-end stood at $30 billion, an increase
from $16.4 billion a year previously.
See more Prem Watsa stocks at his portfolio here. Also check out
the Undervalued Stocks, Top Growth Companies and High Yield stocks
of Prem Watsa.
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