Scott Black, the most recent guru added to GuruFocus' roster,
founded Delphi Management, a long-only fund with approximately
$900 million in assets under management, in 1980. Black's firm
asks two questions about companies when making purchasing
decisions: "(i) Is the company under scrutiny a good business?
(ii) Can we purchase this business at a cheap price in the
marketplace?" They invest only in stocks of U.S.-listed
In the second quarter, Black's portfolio contained 136 stocks,
including 12 new ones. His five top buys are Qualcomm Inc. (
), Meredith Corp (
), EMC Corp (
), Tupperware Brands (
) and Tenaris SA ADR (
Black purchased 147,175 shares of Qualcomm at an average price of
$61 during the quarter.
Qualcomm Inc. develops and delivers innovative digital wireless
communications products and services based on the company's CDMA
digital technology. Qualcomm Inc. has a market cap of $107.02
billion; its shares were traded at around $61.36 with a P/E ratio
of 19.8 and P/S ratio of 7.2. The dividend yield of Qualcomm Inc.
stocks is 1.6%. Qualcomm Inc. had an annual average earnings
growth of 18.2% over the past 10 years. GuruFocus rated Qualcomm
the business predictability rank of 3.5-star
Delphi favors companies that earn a 15% after-tax return on
equity. Qualcomm has reached this benchmark for the last two
Delphi also looks for companies with low debt/equity ratios.
QCOM's debt/equity ratio is 0.04.
Meredith Corp (
Black bought 215,846 shares of Meredith Corp. at an average price
Meredith Corp. has two business segments: publishing and
broadcasting. Meredith Corporation has a market cap of $1.47
billion; its shares were traded at around $32.42 with a P/E ratio
of 13 and P/S ratio of 1.1. The dividend yield of Meredith
Corporation stocks is 4.7%. Meredith Corporation had an annual
average earnings growth of 2.8% over the past 10 years.
Meredith Corp. had a return on equity of 13.1% in 2012, down from
16.4% in 2011. Its debt/equity ratio is 0.48, an increase from
0.25 in 2011.
In the company's fiscal fourth quarter, revenues grew 6% and
earnings per share grew 2%. For fiscal 2012, earnings per share
declined to $2.50 from $2.78 in 2011, when it had additional
earnings from political advertising.
EMC Corp (
Black bought 174,500 shares of EMC Corp. at an average price of
EMC Corporation and its subsidiaries design, manufacture, market
and support a wide range of hardware and software products and
provide services for the storage, management, protection and
sharing of electronic information. EMC Corporation has a market
cap of $56.02 billion; its shares were traded at around $26.38
with a P/E ratio of 19.6 and P/S ratio of 2.8. EMC Corporation
had an annual average earnings growth of 29.3% over the past 10
years. GuruFocus rated EMC Corporation
the business predictability rank of 4-star
In fiscal 2011, EMC's return on equity was 12.4%, increased from
10.5%. Its debt to equity is 0.08, a decrease from 0.18 in 2010.
In the second quarter 2012, EMC marked its 10
consecutive quarter of double-digit, year-over-year consolidated
revenue growth, GAAP net income and GAAP and non-GAP EPS. Revenue
rose 10%, GAAP net income 19%, GAAP earnings per weighted average
diluted share 21%, and non-GAAP earnings per weighted average
diluted share 11%.
Tupperware Brands (
Black bought 58,882 shares of Tupperware Brands at an average
price of $57.
Tupperware Brands Corporation is a global direct seller of
premium, innovative products across multiple brands and
categories through an independent sales force. Tupperware Brands
Corporation has a market cap of $3.02 billion; its shares were
traded at around $52.79 with a P/E ratio of 11.6 and P/S ratio of
1.2. The dividend yield of Tupperware Brands Corporation stocks
is 2.7%. Tupperware Brands Corporation had an annual average
earnings growth of 7.9% over the past 10 years. GuruFocus rated
Tupperware Brands Corporation
the business predictability rank of 2.5-star
Tupperware's 2011 return on equity was 43.6%, an increase from
28.6% in 2010. Its debt/equity ratio was 1.22, an increase from
0.54 in 2010.
Tupperware's second-quarter adjusted diluted earnings per share
was up 22%, excluding the impact of foreign exchange, year over
year. Emerging markets comprised 61% of the company's sales in
the second quarter, and increased 1% in dollars and 14% in local
currency. Its established markets businesses declined 13% in
dollars and 6% in local currency. Its results were under
guidance, namely due to softness in France, Japan, the U.S. and
Tenaris S.A. ADR (
Black bought 92,100 shares of Tenaris at an average price of $35.
Tenaris S.A., a corporation organized in Luxembourg, is a
manufacturer and supplier of seamless steel pipe products and
associated services to the oil and gas, energy and other
industries. Tenaris S.A. ADR has a market cap of $24.48 billion;
its shares were traded at around $40.74 with a P/E ratio of 15
and P/S ratio of 2.5. The dividend yield of Tenaris S.A. ADR
stocks is 1.8%. Tenaris S.A. ADR had an annual average earnings
growth of 20.2% over the past 10 years.
Tenaris had a 12.7% return on equity in 2011, an increase from
10.8% in 2010. Its debt/equity ratio was 0.01, a decrease from
0.02 in 2010.
In the second quarter, Tenaris' net sales increased 17% year over
year, and net income increased 51% year over year, and 7% and 1%
See Scott Black's portfolio
. Also check out the Undervalued Stocks, Top Growth Companies and
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