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Causeway Invests in Royal Dutch Shell in –st Quarter

Causeway International Value ( Trades , Portfolio ) made four new buys in the first quarter AAA the largest in an oil and gas company and the others in financial services and retail.

CausewayAAAs purchase of a 3,954,497-share stake in Royal Dutch Shell PLC (LSE:RDSB), an oil and gas company with offices in London and The Hague, was its largest of the first quarter. The firm paid an average price of AA15.47 ($22.20 in U.S. currency) per share in a deal that had a 1.86% impact on CausewayAAAs portfolio.

The stake is 0.05% of Royal Dutch ShellAAAs outstanding shares and 1.86% of CausewayAAAs total assets. The acquisition made Causeway the companyAAAs leading shareholder among the gurus.

Royal Dutch Shell has a forward P/E of 19.3, a P/B of 1 and a P/S of 0.7. GuruFocus gives Royal Dutch Shell a financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with an ROE of -1.13 and an ROA of -0.55% that are lower than 68% of the companies in the Global Oil & Gas Integrated industry.

Royal Dutch Shell sold for AA17.87 ($25.65 in American money) per share Friday. The DCF Calculator gives Royal Dutch Shell a fair value of AA-2.31.

Causeway purchased a 3,615,970-share stake in ING Groep NV (XAMS:INGA), an Amsterdam-based banking and financial services company, for an average price of AAA10.9 ($12.29 in U.S. dollars) per share. The transaction had a 0.84% impact on CausewayAAAs portfolio.

The stake is 0.09% of INGAAAs outstanding shares and 0.84% of CausewayAAAs total assets. Causeway is INGAAAs only shareholder among the gurus.

ING has a P/E of 11.7, a forward P/E of 9.5, a P/B of 0.9 and a P/S of 4.2. GuruFocus gives ING a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10 with an ROE of 6.95% that is lower than 60% of the companies in the Global Banks AAA Global industry and an ROA of 0.39% that is lower than 77% of the companies in that industry.

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ING sold for AAA9.98 ($11.25 in American currency) per share
Friday. The DCF Calculator gives ING a fair value of AAA10.06 with
a margin of safety of 6%.

ING sold for AAA9.98 ($11.25 in American currency) per share Friday. The DCF Calculator gives ING a fair value of AAA10.06 with a margin of safety of 6%.

CausewayAAAs third-largest new buy of the quarter was a 598,534-share stake in Prudential PLC ( PRU ), a London-based life insurance and financial services company, for an average price of AA13.07 ($18.76 in U.S. money) per share. The deal had a 0.22% impact on CausewayAAAs portfolio.

The stake is 0.02% of PrudentialAAAs outstanding shares and 0.22% of CausewayAAAs total assets. Causeway is PrudentialAAAs leading shareholder among the gurus.

Prudential has a P/E of 12.1, a forward P/E of 10.3, a P/B of 2.4 and a P/S of 0.8. GuruFocus gives Prudential a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with an ROE of 20.98% that is higher than 91% of the companies in the Global Insurance AAA Life industry and an ROA of 0.68% that is lower than 56% of

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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