, oftentimes dubbed the "
of Canada," kept trading to a minimum in the second quarter of
2013. The founder of insurance conglomerate Fairfax Financial
) reported last night that it purchased just three small new
positions during the quarter, and had quarter-over-quarter turnover
The new positions Watsa established are Dex Media Inc. (
), Cooper Tire & Rubber Company (
) and International Business Machines Corp. (
Dex Media Inc. (
purchased 159,198 shares of Dex Media in the second quarter when
the price averaged $18. It is his largest new position at 0.11% of
Dex Media is a marketing solutions company that merged with
SuperMedia on April 30, 2013. Dex Media Inc. has a market cap of
$168.1 million; its shares were traded at around $9.76.
In the second quarter, Dex Media reported $345 million in GAAP
operating revenue and a GAAP net loss of $68 million. Pro forma
free cash flow was $176 million for the first half, net of $20
million in integration costs and $30 million of merger transaction
costs. The company holds $244 million in cash as of June 30.
Cooper Tire & Rubber Company (
Watsa purchased 7,000 shares of Cooper Tire & Rubber Company, a
0.0093% weighting in his portfolio. The price in the second quarter
averaged $26 and has since increased 23%.
Cooper Tire & Rubber Company was incorporated in the state of
Delaware in 1930 as the successor to a business originally founded
in 1914. Cooper Tire & Rubber Company has a market cap of $2.13
billion; its shares were traded at around $32.60 with a P/E ratio
of 8.70 and P/S ratio of 0.50. The dividend yield of Cooper Tire
& Rubber Company stocks is 1.30%.
CTB revenue and earnings history:
The Peter Lynch chart suggests it is undervalued:
International Business Machines Corp. (
Watsa bought just 1,200 shares of IBM, representing 0.0092% of his
portfolio. The price averaged $204 in the second quarter and
declined 9% since.
IBM was incorporated in the State of New York on June 16, 1911, as
the Computing-Tabulating-Recording Co. IBM has a market cap of
$203.69 billion; its shares were traded at around $185.95 with a
P/E ratio of 13.20 and P/S ratio of 2.10. The dividend yield of IBM
stocks is 1.90%. IBM had an annual average earnings growth of 12.2%
over the past 10 years. GuruFocus rated IBM the business
predictability rank of 5-star.
IBM revenue and earnings history:
The Peter Lynch chart suggests the company is undervalued:
See Prem Watsa's portfolio here. Also check out the Undervalued
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