Muhlenkamp & Co. Inc. founder Ronald Muhlenkamp (Trades, Portfolio) purchased seven new holdings in the first quarter. They are Twenty-First Century Fox Inc. (FOXA, Financial), Dow Chemical Co. (DOW, Financial), Microchip Technology Inc. (MCHP, Financial), Cabot Oil & Gas Corp. (COG, Financial), Eldorado Gold Corp. (EGO, Financial), Ameriprise Financial Inc. (AMP, Financial) and The Cooper Companies Inc. (COO, Financial).
A long-term investor, Muhlenkamp buys profitable companies that are trading at a good value based on price-earnings (P/E) and return on equity. His current portfolio consists of 81 stocks, which is valued at $326 million.
In his largest purchase for the quarter, Muhlenkamp gained a 242,290-share position of Twenty-First Century Fox, giving it 2.4% portfolio space. He paid an average price of $30.56 per share.
The media and entertainment company has a market cap of $50.2 billion; its shares were trading around $27.18 Friday with a P/E ratio of 16.7, a price-book (P/B) ratio of 3.4 and a price-sales (P/S) ratio of 1.8.
The Peter Lynch chart below shows the stock is trading slightly above its fair value.
Dodge & Cox is Fox’s largest guru shareholder with 3.7% of outstanding shares. In all, 24 gurus own the stock.
Muhlenkamp bought 118,055 shares of Dow Chemical for an average price of $61.31 per share, expanding the portfolio 2.3%.
The specialty chemical company has a market cap of $74.5 billion; its shares were trading around $60.95 on Friday with a P/E ratio of 15.5, a P/B ratio of 2.7 and a P/S ratio of 1.4.
According to the Peter Lynch chart below, the stock is trading almost evenly with its fair value.
Among the gurus invested in Dow, Daniel Loeb (Trades, Portfolio) has the largest position with 1.3% of outstanding shares. In all, 20 gurus own the stock.
The investor purchased 99,810 shares of Microchip Technology for an average price of $70.51 per share. The position has a portfolio weight of 2.3%.
The semiconductor manufacturer has a market cap of $17.6 billion; its shares were trading around $81.40 Friday with a P/E ratio of 127.2, a P/B ratio of 5.9 and a P/S ratio of 6.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
Barrow, Hanley, Mewhinney & Strauss is the company’s largest guru shareholder with 1.8% of outstanding shares. Nine gurus hold the stock.
Muhlenkamp established a 15,510-share position of Cabot Oil & Gas for an average price of $22.69 per share, expanding the portfolio 0.11%.
The oil and gas company has a market cap of $10.7 billion; its shares were trading around $22.97 on Friday with forward P/E ratio of 34.8, a P/B ratio of 3.9 and a P/S ratio of 7.7.
The Peter Lynch chart below shows the stock is trading above its fair value.
Among the gurus invested in Cabot, Andreas Halvorsen (Trades, Portfolio) is the largest shareholder with 3.7% of outstanding shares. A total of 10 gurus own shares.
After previously selling out of Eldorado Gold in fourth-quarter 2015, Muhlenkamp purchased 77,340 shares of Eldorado for an average price of $3.35 per share, giving it 0.08% portfolio space.
The gold miner has a market cap of $2.5 billion; its shares were trading around $3.41 on Friday with a forward P/E ratio of 42.5, a P/B ratio of 0.7 and a P/S ratio of 5.7.
According to the Peter Lynch chart below, the stock is trading above its fair value.
First Eagle Investment (Trades, Portfolio) is Eldorado’s largest guru shareholder with 0.9% of outstanding shares. Joel Greenblatt (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) also hold the stock.
Muhlenkamp bought 1,600 shares of Ameriprise Financial for an average price of $123.76 per share, expanding the portfolio 0.06%.
The financial services company has a market cap of $18.7 billion; its shares were trading around $122.51 per share Friday with a P/E ratio of 14.9, a P/B ratio of 3.02 and a P/S ratio of 1.7.
The Peter Lynch chart below indicates the stock is trading about evenly with its fair value.
The T Rowe Price Equity Income Fund (Trades, Portfolio) has the largest holding among the gurus with 1.6% of outstanding shares. In total, 13 gurus own Ameriprise stock.
Muhlenkamp’s smallest new purchase for the quarter was a 170-share holding of Cooper Companies, giving it a mere 0.01% portfolio weight. He paid an average price of $190.01 per share.
The medical device company has a market cap of $10.7 billion; its shares were trading around $218.13 on Friday with a P/E ratio of 35.9, a P/B ratio of 3.8 and a P/S ratio of 5.3.
Based on the Peter Lynch chart below, the stock appears to be trading above its fair value.
Pioneer Investments (Trades, Portfolio) is Cooper’s largest guru shareholder with 1.1% of outstanding shares. In addition, seven other gurus hold the stock.
During the quarter, Muhlenkamp also increased his holdings of Cameco Corp. (CCJ, Financial), Gilead Sciences Inc. (GILD, Financial), Handesbrands Inc. (HBI, Financial) and several other stocks.
Disclosure: I do not own any stocks mentioned in the article.
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