Gurus Hold Retailers at 10-Year Low P/S

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Dec 29, 2013

According to the GuruFocus Value Screen for finding historical lows, two food retailers Empire Company Limited (TSX:EMP.A, Financial) and Tesco PLC (TSCDY, Financial), and a farm and ranch retailer, Tractor Supply (TSCO, Financial) are held by guru investors and are being traded at or near a 10-year low. Here are the company updates and trading highlights as of the third quarter of 2013.

Empire Company Limited (TSX:EMP.A, Financial)

Up 22% over 12 months, Empire Company Limited (EMP.A), a Canadian food retailing business, is traded at a P/S ratio of 0.27, close to a 10-year low of 0.23.

Empire Company Limited has a market cap of $4.18 billion; its shares were traded at around $72.04 with a P/E ratio of 12.30 and P/B ratio of 1.10. The dividend yield of EMP.A stocks is 1.39%. GuruFocus rates the company with 2.5 stars out of five for business predictability.

Check out the 10-Year Valuations.

The GuruFocus analysis of the company shows five good signs and four warnings.

Track historical share price, revenue and net income:

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Guru Action: As of the third quarter of 2013, EMP.A is owned by one guru and there is insider activity.

As of Sept. 30, 2013, the sole guru stakeholder Cl Can Am Small Cap reduced its position by 11.46%, selling 14,800 shares at an average price of $79.75 per share, for a loss of 9.7%.

Over a five-year history, the fund gained 22% buying 42,400 shares at an average price of $59.03 per share. The fund averaged a gain of 7% selling 24,600 shares at an average price of $67.15 per share.

Cl Can Am Small Cap holds current shares of 114,300 or 0.17% of shares outstanding. This holding represents 5.7% of its total assets managed.

CI Can-Am Small Cap Corporate Class is an open-end fund incorporated in Canada, begun in 1997. The fund is managed by CI Investments Inc. and its advisor is QV Investors Inc.

Tesco PLC (TSCDY, Financial)

Up 2% over 12 months, Tesco PLC (TSCDY, Financial) is a grocery retailer, trading at a P/S ratio of 0.42, close to a 10-year low of 0.36.

Tesco PLC has a market cap of $45.73 billion; its shares were traded at around $16.97 with a P/E ratio of 225.10 and P/B ratio of 1.60. The dividend yield of TSCDY stocks is 3.85%. The company had an annual average earnings growth of 7.40% over the past 10 years.

GuruFocus rated Tesco PLC the business predictability rank of 3-star.

Tesco PLC is engaged in retailing and associated activities in the UK, China, the Czech Republic, Hungary, the Republic of Ireland, India, Japan, Malaysia, Poland, Slovakia, South Korea, Thailand, Turkey and the U.S.

Check out the 10-Year Valuations.

The GuruFocus analysis of the company shows six warning signs and two good signs.

Track historical share price, revenue and net income:

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Guru Action: As of the third quarter of 2013, TSCDY is held by two gurus and no insider activity was found.

As of Sept. 30, 2013, the top guru stakeholder Arnold Van Den Berg holds 1,480,222 shares or 0.05% of shares outstanding. He reduced his position by 0.9% in the third quarter of 2013, selling 13,455,698 shares at an average price of $17.08 per share, for a loss of 0.6%.

Over two years of trading, he gained 12% on 17,377,750 shares at an average price of $15.13 per share. Selling, he lost 0% on 15,897,528 shares at an average price of $16.99 per share.

Tractor Supply (TSCO, Financial)

Down 71% over 12 months, Tractor Supply (TSCO, Financial) is traded at a P/S ratio of 2.13.

Tractor Supply is an operator of retail farm and ranch stores in the U.S. The company has a market cap of $10.54 billion; its shares were traded at around $75.54 with a P/E ratio of 34.40 and P/B ratio of 8.90. The dividend yield of Tractor Supply stocks is 0.65%. The company had an annual average earnings growth of 19% over the past 10 years.

GuruFocus rated Tractor Supply the business predictability rank of 5-star.

Check out the 10-Year Valuations

The GuruFocus analysis of the company shows three good signs and five warning signs.

Track historical share price, revenue and net income:

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Guru Action: As of the third quarter of 2013, TSCO is owned by eight gurus and there is recent insider selling.

As of Sept. 30, 2013, the top guru stakeholder Ron Baron holds 655,734 shares or 0.47% of shares outstanding. He reduced his position by 0.13% in the third quarter of 2013, selling 876 shares at an average price of $61.62 per share, for a gain of 22.6%.

Over a phenomenal trading history, he averaged a gain of 131% buying 844,714 shares at an average price of $32.72 per share. He also gained 63% selling 188,980 shares at an average price of $46.35 per share.

Check out Ron Baron’s trading history:

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