Austin-based value investor and founder of Century Management
Arnold Van Den Berg
has reported his fourth quarter portfolio, revealing that his
trades included five new buys: Cohu Inc. (
), Dolby Laboratories Inc. (
), Nationstar Mortgage Holdings (
), Alcoa Inc. (
), and Halliburton Company (
). Van Den Berg and his team manage a $908.3 million equity
portfolio of 63 stocks. In the fourth quarter, the majority 33.5%
was invested in the technology sector, followed by 11% in the
financial services sector, and the rest was split among other
Van Den Berg's smallest new fourth-quarter buy was 74,652 shares
of Cohu Inc. for $9 per share on average. The new holding
occupies a mere 0.09% of his portfolio.
Cohu operates in the semiconductor, television camera and
microwave communications segments. Its stock over the past year
has declined 10% to $10.50 on Thursday, between a 52-week range
of $7.96 and $14.16.
Cohu in the third quarter was hurt by a weak global economy which
led to decreased orders and sales. The company's net sales were
$57.7 million, a decline from $71.8 million in the third quarter
of 2011. Its net loss was $1.7 million, a decline from net income
of $3.4 million.
Cash on Cohu's balance totals $153 million, and long-term
liabilities total $17.95 million, with no long-term debt. It paid
a third quarter dividend of $0.06 per share and has paid
uninterrupted cash dividends since 1977.
Cohu has no P/E due to its net loss; a P/B of 0.9, close to a
three-year low; and P/S of 0.7, close to a one-year low.
Dolby Laboratories Inc. (
Van Den Berg bought 85,585 shares of Dolby Laboratories for $32
each on average. It is now a 0.28% weighting of his portfolio.
Dolby Laboratories creates technologies that enhance movies, and
is best known for high-quality audio and surround sound. Its
stock has declined almost 8% over the last year.
The company's fourth quarter revenue was $224.8 million, compared
to $243.8 million in the fourth quarter of 2011. GAAP net income
was $51.5 million, compared to $79.1 million. Though a decline,
fourth quarter revenue was higher than the company expected as
smartphones and tablets increasingly adopt its technologies, and
the Amazon (
) Kindle included Dolby technology in its Kindle Fire HD
Dolby has $844.2 million in cash on its balance sheet, $83.7
million in long-term liabilities and no long-term debt.
Dolby has a P/E of 11.8, P/B of 1.8, close to a one-year low; and
P/S of 3.7, close to a one-year low.
Nationstar Mortgage Holdings (
Van Den Berg bought 114,575 shares of Nationstar Mortgage
Holdings for $31 per share on average. The holding has a 0.39%
weighting in his portfolio.
Texas-based Nationstar Mortgage is a mortgage servicer and lender
directly to consumers, that services approximately 1 million
loans with an aggregate unpaid principal balance of $198 billion
at Sept. 30, 2012. The company's stock has gained 57% over the
In the third quarter, Nationstar grew revenue 205% year over year
to $277.2 million, from $90.9 million. Its net income reached a
record $55.1 million, an increase from a loss of $3.1 million in
the third quarter of 2011.
Nationstar has three stated goals: Executing on its servicing
acquisition pipeline of $600 billion, organically grow servicing
by recapture and expansion of its builder, wholesale and
origination channels, and expanding its ancillary offering of
end-to-end solutions for originations and default services.
On Jan. 7, Nationstar announced it would acquire $215 billion in
residential mortgage servicing rights and other assets from Bank
of America, for a purchase price of $1.3 billion.
Cash on Nationstar's balance sheet totals $690 million, as well
as $893 million in liabilities and no long-term debt. The company
does not pay a dividend.
Nationstar has a P/E of 19.2 and P/B of 4.9.
Alcoa Inc. (
Van Den Berg bought 1,492,980 shares of Alcoa for $9 per share on
average, close to its three-year low of $8.01. It occupies a
1.43% weighting in his portfolio.
Alcoa is the largest aluminum producer, bauxite miner and alumina
refiner in the world. Its stock price since the past year is
Alcoa met its targets in the fourth quarter for the fourth year
in a row, in spite of metal price volatility, an uncertain global
economy and low aluminum prices. Its revenue decreased 2% year
over year to $5.9 billion, and net income of $242 million,
compared to a net loss of $191 million in the fourth quarter of
Alcoa ended the quarter with $1.9 billion in cash and $9.09
billion in long-term liabilities and debt, its lowest level since
Alcoa has a P/B of 0.54, close to a three-year low; and a P/S
ratio of 0.36, close to a three-year low.
Halliburton Company (
His largest new buy, Van Den Berg purchased 378,325 shares of
Halliburton Company for $33 per share on average. It holds a
1.44% weighting in his portfolio.
Texas-based Halliburton was founded in 1919 and is one of the
world's largest providers of products and services to the energy
industry, with operations in 80 countries. It serves the upstream
oil and gas industry. Halliburton's stock over the past year
In the third quarter, Halliburton saw better results in its
international segment, with record revenue in both its Latin
America and Middle East/Asia regions, than its domestic market.
International revenue increased 2%, while North American revenue
declined 5%, primarily due to higher prices in hydraulic
fracturing and guar costs, and the effects of Hurricane Isaac.
Overall third quarter revenue declined 2% sequentially, to $7.1
billion from $7.2 billion. Net income was $604 million, compared
to $739 the previous quarter.
Halliburton ended the quarter with $7.9 billion in cash and $5.6
billion in long-term liabilities and debt. It paid a $0.09
dividend and has not raised the dividend since 2008.
The company has a P/E of 11.8, P/B of 2.3 and P/S of 1.3.
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