During the reporting period ending 12.31.10, David Dreman of Dreman Value Management was busy. Positions in all the stocks below were either initiated or added to during the reporting period. We computed the position sizes relative to Dreman’s total portfolio. Though Dreman's credibility has taken a hit recently, any value hunters out there looking for some names to add to their portfolio should check out the list of 35 below, plus our commentary on one of his favorite stocks. And as always, please do you own due diligence before opening a position.
Company | Ticker | % Weighting of Portfolio | Current Price | Total Shares Owned | |
PENNSYLVANIA REAL ESTATE INVESTMENT TRUST | 0.71% | $13.37 | 1,374,818 | ||
FRONTLINE LTD. | 0.69% | $24.54 | 2,343,322 | ||
Arris Group Inc | 0.65% | $12.26 | 1,257,248 | ||
COOPER TIRE & RUBBER CO. | 0.55% | $25.55 | 3,392,464 | ||
BRIGGS & STRATTON CORP. | 0.47% | $19.77 | 977,591 | ||
NCR Corp. | 0.44% | $18.36 | 1,087,239 | ||
CHARLES RIVER LABORATORIE | 0.42% | $37.63 | 1,356,225 | ||
Intel Corp. | 0.38% | $20.18 | 1,098,665 | ||
EATON Corp. | 0.34% | $51.02 | 796,467 | ||
MINEFINDERS Corp. LTD. | 0.33% | $10.40 | 349,324 | ||
THE JONES GROUP INC. | 0.31% | $12.52 | 1,363,878 | ||
OMEGA HEALTHCARE INVESTORS INC. | 0.28% | $22.62 | 2,703,409 | ||
Prosperity Bancshares Inc. | PRSP | 0.27% | $40.50 | 585,119 | |
COMMONWEALTH REIT | 0.22% | $25.22 | 277,090 | ||
MEDICAL PROPERTIES TRUST INC. | 0.18% | $11.07 | 1,526,512 | ||
TELEFLEX Inc. | 0.15% | $56.01 | 3,714,864 | ||
EarthLink Inc. | 0.13% | $7.81 | 697,813 | ||
ALLIANT TECHSYSTEMS INC. | 0.11% | $68.54 | 523,630 | ||
DST SYSTEMS INC. | 0.10% | $48.78 | 828,438 | ||
OWENS & MINOR INC. | 0.10% | $30.46 | 1,212,417 | ||
THE HANOVER INSURANCE GROUP INC. | 0.09% | $45.43 | 750,888 | ||
ARCH COAL INC. | 0.08% | $33.67 | 238,062 | ||
CARDINAL HEALTH INC. | 0.07% | $40.10 | 87,659 | ||
Constellation Energy Grp. | 0.07% | $30.90 | 109,825 | ||
PORTLAND GENERAL ELECTRIC COMPANY | 0.07% | $23.23 | 150,350 | ||
IAMGOLD Corp. | 0.07% | $20.52 | 188,575 | ||
JDA Software Group Inc. | 0.07% | $27.91 | 125,084 | ||
EVEREST RE GROUP LTD. | 0.07% | $82.08 | 40,225 | ||
GAP INC. | 0.06% | $21.72 | 160,927 | ||
ALLEGHENY ENERGY INC. | 0.06% | $24.99 | 142,100 | ||
Cephalon Inc. | 0.06% | $55.57 | 52,450 | ||
COMPUTER SCIENCES CORP. | 0.06% | $46.57 | 63,921 | ||
NATIONAL SEMICONDUCTOR | 0.06% | $14.38 | 217,959 | ||
URS Corp. | 0.06% | $44.74 | 73,998 | ||
HARRIS Corp. | 0.05% | $44.25 | 66,278 | ||
Of all the stocks in the portfolio we like Intel (INTC). It has a P/E of 10.4, P/B of 2.3, and P/S of 2.7. The industry averages are 18.3, 2.7, and 2.6, respectively. From 2001 to 2007, Intel’s price to sales multiples were 8.1, 3.9, 7.0, 4.4, 4.0, 3.4, and 4.1, respectively. Using Intel’s Q1 estimates of $11.5 billion in revenues and several expense deductions, EPS is projected to come in at $0.51. This implies an EPS of $2.10 for the year through Q1 2011. 12 months through Q1 2010, EPS was only $1.09. Q1 2011 earnings are released on April 19. Intel was on our list of cheap, high yield dividend kings for 2011.
Intel drew in $43.6 billion in revenues in 2010, which is an increase of 24.19%, after declining 6.5% in 2009. Net income came in at $11.46 billion (+162.39%). In 2009, profits were only $4.36 billion (- 17.4%). In 2010 and 2009, profit margins were 65.3% and 55.69%, respectively, and the EBT margins were 36.78% and 16.2%, respectively. ROIC climbed to 24% in 2010, after posting only 10.28% in 2009. The current ratio is 3.39, with a minuscule D/E of 0.04. EPS jumped over 160% to $2.01, implying a P/E of 10.6.
However, JP Morgan analyst, Mark Moskowitz, lowered his expectations for PC shipments in 2011 on Monday, prompting Christopher Danley-- the JP Morgan analyst who covers Intel-- to suggest that Intel’s stated guidance is too optimistic. Danley also said in a research note that he thinks Intel’s production rates are too high for lower PC market demand.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
