is a portfolio manager of the well-known Oakmark Fund (
) and Oakmark Select Fund (
), recognized both for their value approach and returns. Just on
Tuesday, Nygren quipped on CNBC's Fast Money program, "What we do
is probably about as opposite from 'fast money' as you can get,
because we're taking positions that we expect to hold for at least
five years unless the market gives us an opportunity to sell a lot
earlier than that."
He also gave some insight into his investment approach. "At Oakmark
what we try to do is find the names that the rest of the market
isn't excited about and because of that gives us an opportunity to
buy at value prices," he said.
In the second quarter, he introduced three new holdings into his
portfolio: General Motors (
), National Oilwell Varco Inc. (
) and Apache Corporation (
Apache Corporation (
purchased 1.35 million shares of Apache Corporation in the second
quarter when the price averaged $80. The position represents 1.2%
of his portfolio. The price remains virtually flat.
Apache is an independent oil and gas exploration and production
company, with operations in Argentina, Australia, Canada, Egypt, UK
North Sea and the U.S.
For the second quarter, Apache on Aug. 1 announced $1 billion in
earnings, or $2.54 per diluted common share, but said the result
excluded $801 million, or $2.01 per share for certain items. A year
earlier, Apache reported earnings of $337 million, or $0.86 per
diluted share. Its quarterly revenue was $4.38 billion, up from
$3.97 billion a year earlier, but is down slightly for the first
half of the year.
Apache revenue and earnings history:
The Peter Lynch chart suggests the stock is undervalued:
Apache has a market cap of $30.13 billion with a P/E ratio of 12.10
and P/S ratio of 1.80. Its P/B ratio at 0.98 is close to a 10-year
low. The dividend yield of Apache stocks is 1.00%. Apache had an
annual average earnings growth of 6.4% over the past 10 years.
National Oilwell Varco Inc. (
Nygren purchased 2.3 million shares of National Oilwell Varco in
the second quarter when the price averaged $68. The weighting is
1.7%, and the stock has increased 3% since.
National Oilwell Varco, a Delaware corporation incorporated in
1995, is a provider of equipment and components used in oil and gas
drilling and production operations, oilfield services, and supply
chain integration services to the upstream oil and gas industry.
For the second quarter ended June 30, National Oilwell Varco
reported revenue of $5.6 billion, an 18% increase from a quarter
earlier. Earnings were $531 million, or $1.24 per fully diluted
share, down from $602 million or $1.42 per fully diluted share a
National Oilwell Varco revenue and earnings history:
The Peter Lynch chart also suggests this stock is undervalued:
National Oilwell Varco has a market cap of $30.22 billion with a
P/E ratio of 13.00 and P/S ratio of 1.40. The dividend yield of
National Oilwell Varco stocks is 0.90%. National Oilwell Varco had
an annual average earnings growth of 28.4% over the past 10 years.
GuruFocus rated National Oilwell Varco the business predictability
rank of 2.5-star.
General Motors (
Bill Nygren Purchased 5.3 million shares of General Motors Co. in
the second quarter when the price averaged $32 per share. The
position has a 1.9% portfolio weight. The price has increased 10%
General Motors reported second quarter revenue of $39.1 billion,
increased from $37.6 billion a year earlier. Earnings were $1.5
billion, or $0.75 per fully diluted share, which included $0.5
billion, or $0.29 per fully diluted share in increased tax expense.
A year earlier, earnings were $1.5 billion, or $0.90 per fully
General Motors revenue and earnings history:
The Peter Lynch chart also suggests the stock is undervalued:
General Motors has a market cap of $47.85 billion; its shares were
traded at around $34.57 with a P/E ratio of 9.80 and P/S ratio of
Read Bill Nygren's comments on these stocks in his second quarter
See his portfolio here. Also check out the Undervalued Stocks, Top
Growth Companies and High Yield stocks of Bill Nygren.
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