According to GuruFocus research there are 89 American companies that are currently listed as undervalued and predictable. Applying discounted cash flow and discounted earnings to top ranked predictable companies, and calculating their intrinsic values, these companies appear to be undervalued.
Here are four undervalued, predictable companies that have the interest of numerous billionaire investors and insiders.
World Acceptance Corporation (WRLD, Financial) β Yield 0.00%
Predictability: 5 Stars
World Acceptance Corporation is a small-loan consumer finance company that provides short-term small loans, medium-term larger loans, related credit insurance products and ancillary products and services to individuals.
Up 26% over 12 months, World Acceptance Corporation has a market cap of $1.04 billion, and trades at a P/E of 10.80 and a P/B of 2.90. The current share price is $88.49. Under the discounted cash flow model the valuation is $432 with an 80% discount. The discounted earning valuation is $224 with a discount of 60%.
Guru Action: As of June 30, 2013, there are seven billionaires holding WRLD shares and very active insider trading.
The top Guru stakeholder is Columbia Wanger with 12.34% of shares outstanding, or 1,446,600 shares as of June 30, 2013, when the firm reduced its position by 18.52%. The firm sold 328,900 shares at an average price of $88.91, for a loss of 0.5%.
The firm has averaged a gain of 193% on 79,500 shares bought at an average price of $30.23 per share over a five-year holding history. On shares sold, the firm averaged a gain of 45% on 1,226,800 shares sold at an average price of $60.99 per share.
Check out this remarkable history that tops out with a gain of 410.9% on 1,000 shares sold at an average price of $17.32 in the first quarter of 2009:
Historical WRLD share pricing, revenue and net income:
Parke Bancorp Inc. (PKBK, Financial) β Yield 0.00%
Predictability: 4 Stars
Incorporated in 2005, Parke Bancorp Inc. is a bank holding company for Parke Bank, a commercial bank chartered by the New Jersey Department of Banking and insured by the Federal Deposit Insurance Corporation (FDIC).
Up 78% over 12 months, Parke Bancorp Inc. has a market cap of $51.33 million, and trades at a P/E of 7.50 and a P/B of 0.80. The current share price is $8.58. Under the discounted cash flow model the valuation is $82 with 90% discount. The discounted earning valuation is $16 with a discount of 46%.
Guru Action: The sole Guru stakeholder is Arnold Schneider with 0.58% of shares outstanding, or 34,828 shares as of June 30, 2013, when he increased his position by 6.03%, buying 1,980 shares at an average price of $7.37 for a gain of 16.4%.
He has averaged a gain of 50% on 34,828 shares bought at an average price of $5.72 per share over a three-quarter holding history with all gains.
There is active insider trading.
Historical pricing, revenue and net income:
National Research Corporation (NRCIA, Financial) β Yield 0.00%
Predictability: 5 Stars
Founded in 1981, National Research Corporation is a provider of analytics and insights that facilitate revenue growth, patient, employee and customer retention and patient engagement for healthcare providers, payers and other healthcare organizations.
Down 15% over 12 months, National Research Corporation has a market cap of $406.85 million, and trades at a P/E of 7.00 and a P/B of 10.20. The current share price is $17.01. Under the discounted cash flow model the valuation is $93 with an 82% discount. The discounted earning valuation is $86 with a discount of 80%.
Guru Action: The sole Guru stakeholder is Jim Simons with 0.28% of shares outstanding, or 67,800 shares that be bought as of June 30, 2013. He has averaged a gain of 7% on the new buy of 67,800 shares bought at an average price of $15.97 per share.
There is no insider trading activity to report.
Historical pricing, revenue and net income:
Credicorp Ltd. (BAP, Financial) β Yield 1.97%
Predictability: 4.5 Stars
Incorporated in Bermuda in 1995, Credicorp Ltd. is a holding company. The company's main activity is to coordinate and manage the business plans of its subsidiaries in an effort to implement universal banking services and develop its insurance business, focusing in Peru and Bolivia, with limited investments in other countries of the region.
Up 5% over 12 months, Credicorp Ltd. has a market cap of $10.54 billion, and trades at a P/E of 11.90 and a P/B of 2.70. The current share price is $132.17. Under the discounted cash flow model the valuation is $331 with a 60% discount. The discounted earning valuation is $286 with a discount of 54%.
Guru Action: As of June 30, 2013, there are four billionaires holding BAP shares and insider buys.
The top Guru stakeholder is Jim Simons with 0.52% of shares outstanding, or 417,200 shares as of June 30, 2013, when he increased his position by 7.03%. He bought 27,400 shares at an average price of $144.68 per share, for a loss of 8.7%.
He has averaged a gain of 16% on 958,300 shares bought at an average price of $114.51 per share over a five-year holding history. On shares sold, he averaged a gain of 4% on 541,100 shares sold at an average price of $126.66 per share.
As of the second quarter, Bruce Kovner and Louise Moore Bacon sold out their holdings, taking an 8.7% loss. Kovner sold 4,200 shares at an average price of $144.69; Bacon sold 19,000 shares, also at $144.69 per share.
Historical pricing, revenue and net income:
Read more about the GuruFocus assumptions and methodology used for determining undervalued, predictable companies..
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GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.
Here are four undervalued, predictable companies that have the interest of numerous billionaire investors and insiders.
World Acceptance Corporation (WRLD, Financial) β Yield 0.00%
Predictability: 5 Stars
World Acceptance Corporation is a small-loan consumer finance company that provides short-term small loans, medium-term larger loans, related credit insurance products and ancillary products and services to individuals.
Up 26% over 12 months, World Acceptance Corporation has a market cap of $1.04 billion, and trades at a P/E of 10.80 and a P/B of 2.90. The current share price is $88.49. Under the discounted cash flow model the valuation is $432 with an 80% discount. The discounted earning valuation is $224 with a discount of 60%.
Guru Action: As of June 30, 2013, there are seven billionaires holding WRLD shares and very active insider trading.
The top Guru stakeholder is Columbia Wanger with 12.34% of shares outstanding, or 1,446,600 shares as of June 30, 2013, when the firm reduced its position by 18.52%. The firm sold 328,900 shares at an average price of $88.91, for a loss of 0.5%.
The firm has averaged a gain of 193% on 79,500 shares bought at an average price of $30.23 per share over a five-year holding history. On shares sold, the firm averaged a gain of 45% on 1,226,800 shares sold at an average price of $60.99 per share.
Check out this remarkable history that tops out with a gain of 410.9% on 1,000 shares sold at an average price of $17.32 in the first quarter of 2009:
Historical WRLD share pricing, revenue and net income:
Parke Bancorp Inc. (PKBK, Financial) β Yield 0.00%
Predictability: 4 Stars
Incorporated in 2005, Parke Bancorp Inc. is a bank holding company for Parke Bank, a commercial bank chartered by the New Jersey Department of Banking and insured by the Federal Deposit Insurance Corporation (FDIC).
Up 78% over 12 months, Parke Bancorp Inc. has a market cap of $51.33 million, and trades at a P/E of 7.50 and a P/B of 0.80. The current share price is $8.58. Under the discounted cash flow model the valuation is $82 with 90% discount. The discounted earning valuation is $16 with a discount of 46%.
Guru Action: The sole Guru stakeholder is Arnold Schneider with 0.58% of shares outstanding, or 34,828 shares as of June 30, 2013, when he increased his position by 6.03%, buying 1,980 shares at an average price of $7.37 for a gain of 16.4%.
He has averaged a gain of 50% on 34,828 shares bought at an average price of $5.72 per share over a three-quarter holding history with all gains.
There is active insider trading.
Historical pricing, revenue and net income:
National Research Corporation (NRCIA, Financial) β Yield 0.00%
Predictability: 5 Stars
Founded in 1981, National Research Corporation is a provider of analytics and insights that facilitate revenue growth, patient, employee and customer retention and patient engagement for healthcare providers, payers and other healthcare organizations.
Down 15% over 12 months, National Research Corporation has a market cap of $406.85 million, and trades at a P/E of 7.00 and a P/B of 10.20. The current share price is $17.01. Under the discounted cash flow model the valuation is $93 with an 82% discount. The discounted earning valuation is $86 with a discount of 80%.
Guru Action: The sole Guru stakeholder is Jim Simons with 0.28% of shares outstanding, or 67,800 shares that be bought as of June 30, 2013. He has averaged a gain of 7% on the new buy of 67,800 shares bought at an average price of $15.97 per share.
There is no insider trading activity to report.
Historical pricing, revenue and net income:
Credicorp Ltd. (BAP, Financial) β Yield 1.97%
Predictability: 4.5 Stars
Incorporated in Bermuda in 1995, Credicorp Ltd. is a holding company. The company's main activity is to coordinate and manage the business plans of its subsidiaries in an effort to implement universal banking services and develop its insurance business, focusing in Peru and Bolivia, with limited investments in other countries of the region.
Up 5% over 12 months, Credicorp Ltd. has a market cap of $10.54 billion, and trades at a P/E of 11.90 and a P/B of 2.70. The current share price is $132.17. Under the discounted cash flow model the valuation is $331 with a 60% discount. The discounted earning valuation is $286 with a discount of 54%.
Guru Action: As of June 30, 2013, there are four billionaires holding BAP shares and insider buys.
The top Guru stakeholder is Jim Simons with 0.52% of shares outstanding, or 417,200 shares as of June 30, 2013, when he increased his position by 7.03%. He bought 27,400 shares at an average price of $144.68 per share, for a loss of 8.7%.
He has averaged a gain of 16% on 958,300 shares bought at an average price of $114.51 per share over a five-year holding history. On shares sold, he averaged a gain of 4% on 541,100 shares sold at an average price of $126.66 per share.
As of the second quarter, Bruce Kovner and Louise Moore Bacon sold out their holdings, taking an 8.7% loss. Kovner sold 4,200 shares at an average price of $144.69; Bacon sold 19,000 shares, also at $144.69 per share.
Historical pricing, revenue and net income:
Read more about the GuruFocus assumptions and methodology used for determining undervalued, predictable companies..
If you are not yet a Premium Member, we invite you for a 7-day Free Trial.
Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.
GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.
