Sarah Ketterer Gains 4 Stocks in 1st Quarter
- By Sydnee Gatewood
Causeway Capital Management's Sarah Ketterer (Trades, Portfolio) gained four new stocks in the first quarter. They are Canadian Pacific Railway Ltd. (CP), Flowserve Corp. (FLS), Companhia de Saneamento Basico do Estado de Sao Paulo (SBS) and SodaStream International Ltd. (SODA).
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The intrinsic value of CP
As CEO of Causeway, Ketterer invests in equities in global, international and emerging markets to gain the greatest absolute returns. She manages a portfolio of 81 stocks that is valued at $6.010 billion.
Ketterer's largest purchase for the quarter was 2.7 million shares of Canadian Pacific Railway for an average price of $148.48 per share, giving it 7.24% portfolio space.
The rail transportation company has a market cap of $22.4 billion; its shares were trading around $152.57 on Friday with a price-earnings (P/E) ratio of 20.95, a price-book (P/B) ratio of 6.14 and a price-sales (P/S) ratio of 5.01.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked Canadian Pacific's financial strength 4 of 10 and its profitability and growth 8 of 10. The trailing dividend yield is 1% and the forward dividend yield is 1.1%. Over the past five years, the company has grown its dividend at a rate of 7.1% per year.
Andreas Halvorsen (Trades, Portfolio) is the company's largest guru shareholder with 2.2% of its outstanding shares. In addition, five other gurus hold the stock.
Ketterer bought 1.6 million shares of Flowserve for an average price of $48.46 per share, expanding the portfolio 1.5%.
The global pump company has a market cap of $6.34 billion; its shares were trading around $48.56 on Friday with a P/E ratio of 52.2, a P/B ratio of 3.8 and a P/S ratio of 1.6.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Flowserve's financial strength 5 of 10 and its profitability and growth 6 of 10. The trailing dividend yield and forward dividend yield are both 1.6%. The company has grown its dividend at a rate of 12.9% per year for the past five years.
First Eagle Investment (Trades, Portfolio) is the largest company's shareholder among the gurus with 9.6% of its outstanding shares. In total, 10 gurus own Flowserve stock.
After previously exiting her stake in Companhia de Saneamento Basico in third-quarter 2014, Ketterer established a new 1.73 million-share stake, paying an average price of $10.17 per share. The trade had an impact of 0.3% on the portfolio.
The Brazilian water and waste management company has a market cap of $7.14 billion; its shares were trading around $8.83 on Friday with a P/E ratio of 6.8, a P/B ratio of 1.3 and a P/S ratio of 1.4.
Based on the Peter Lynch chart below, the stock appears to be trading below its fair value.
GuruFocus ranked the company's financial strength 5 of 10 and its profitability and growth 8 of 10. The company does not pay a dividend currently.
Jim Simons (Trades, Portfolio) is the company's largest guru shareholder with 0.4% of its outstanding shares. A total of six gurus own the stock.
For her smallest new purchase of the quarter, Ketterer invested in 600 shares of SodaStream for an average price of $45.43 per share.
The home beverage carbonation systems manufacturer has a market cap of $1.13 billion; its shares were trading around $52.16 on Friday with a P/E ratio of 21.4, a P/B ratio of 2.7 and a P/S ratio of 2.3.
The Peter Lynch chart below indicates the stock is trading above its fair value.
GuruFocus ranked the company's financial strength 9 of 10 and its profitability and growth 7 of 10. The company does not pay a dividend.
Among the gurus invested in SodaStream, Simons has the largest holding with 3.25% of outstanding shares. Jeremy Grantham (Trades, Portfolio) and Caxton Associates (Trades, Portfolio) also own the stock.
Ketterer also increased her positions in SM Energy Co. (SM), Baidu Inc. (BIDU), PDC Energy Inc. (PDCE), Advance Auto Parts Inc. (AAP), Signet Jewelers Ltd. (SIG) and Citigroup Inc. (NYSE:C) during the quarter. To see all of her current holdings, view her portfolio.
Disclosure: I do not own any stocks mentioned in the article.
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This article first appeared on GuruFocus.
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The intrinsic value of CP
