of New-York based
& Co. Inc. investment firm, has reported a total of 31
transactions in its third quarter portfolio updates, consisting
Additions to Current Shares
Reductions to Current Shares
follows a strict bottom-up investment approach, investing in
stocks that are out of favor, "that sell in the bottom decile of
price-to-tangible book value ratios, and that have significant
earnings potential over the next 2-4 years," according to
Donaldsmithandco.com. The stocks in the firm's portfolio have an
average investment holding period of approximately three years.
The firm also offers five long-only funds: All Cap Value Equity,
Large Cap Concentrated Value Equity, Midcap Value Equity, Small
Cap Value Equity and Micro Cap Value Equity.
As of the end of the third quarter,
's portfolio had a total of 95 stocks, with a total value of $3.3
billion and quarter-over-quarter turnover rate of 5%.
The firm's top five holdings are:
1. Ingram Micro Inc. (
) at 4.9% ownership
2. Dillards Inc. (
) at 4.5% ownership
3. Granite Real Estate Inc. (
) at 4.5% ownership
4. Micron Technology Inc. (
) at 4.2% ownership
5. JetBlue Airways Corp. (
) at 4.2% ownership
The fund's sector weightings are as follows:
Oil & Gas
In summary, Donald Smith targets stocks that are out of favor,
and have a large margin of safety as well as attractive pricing
and valuations, while trying to minimize absolute risks. For the
third quarter, he had only two new buys: StanCorp Financial Group
) and Nabors Industries Ltd. (
), stocks that belong in the first and third largest sectors
represented in Donald Smith's portfolio.
StanCorp Financial Inc. (
Donald Smith's new holding of financial services provider
StanCorp Financial (
) amounts to 245,856 shares.
Headquartered in Portland, Ore., StanCorp is parent to several
subsidiaries that offer an array of insurance coverage, marketed
as Standard Insurance Company, Standard Retirement Services,
StanCorp Mortgage Investors, StanCorp Investment Advisers and
StanCorp Real Estate, to name a few.
The company has a market cap of $1.48 billion, and is currently
trading at $33.09 per share.
Ranking in the bottom half of Business Predictability, its
revenue growth percentage trends positively at a rate of 9.2
percent in a 10-year time frame, while its operating margin,
though having experienced an unstable trend in the last five
years, suffers a negative growth trend at a rate of 4.37 percent.
Despite its growth margin, along with its operating margin, in a
five-year decline, shareholders are seeing growing returns, as
well as low P/E and P/B ratios in its trading activity; its P/E
ratio is close to its 10-year low and its P/B ratio is close to
its 1-year low.
GuruFocus ranks StanCorp Financial a 5 out of 10 in Financial
Strength and 6 out of 10 in Profitability and Growth. View the
company's 10-Year Financials to see where it stands financially.
Nabors Industries Ltd. (
Donald Smith's new holding of oil and gas drilling company Nabors
) totaled 70,000 shares.
A company worth $3.81 billion, Bermuda-based Nabors Industries
provides land and platform drilling contract services for the
purposes of exploration and development of oil, gas and
geothermal wells, expanding its services worldwide.
Nabors is trading at a one-year low of $13.29; it has traded at a
minimum price of $13.01 and a maximum price of $16.70.
Similar to Smith's StanCorp Financial stock, Nabors shows a
rising revenue within a 10-year time frame, at a rate of 12.6
percent, while its operating margin shows less stability with a
negatively tilted trend line.
In turn, Nabors has a 1-star Business Predictability, as well as
a mediocre Financial Strength of 5 out of 10 and a Profitability
and Growth Rank of 4 out of 10. View the rest of the company's
10-Year Financials to see where else it stands financially.
View the rest of Donald Smith's portfolio updates here. Also view
the portfolio's undervalued stocks, top growth companies and high
yield stocks.About GuruFocus: GuruFocus.com tracks the stocks
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