Arnold Van Den Berg is the founder of Austin-based Century Management. He and his team seek companies that are trading at discounts to their intrinsic value either because they are lesser known, have a short-term problem or are temporarily out of favor.
As of the close of the first quarter, Century Management held 80 stocks valued at $1.193 billion. The guru bought 14 new stocks during the first quarter for a quarter-over-quarter turnover of 19%. The following five companies are the five largest stock positions held by Century Management as of the close of the first quarter.
Corning Inc (GLW)
The guru’s largest position is in Corning. The guru holds on to 2,877,393 shares, representing 0.20% of the company’s shares outstanding and 5% of his total portfolio.
During the first quarter Van Den Berg reduced his position -1.3% by selling a total of 37,958 shares. He sold these shares in the third quarter price range of $17.05 to $20.97, with an estimated average price of $18.75. The price per share has jumped up approximately 12.1% since then.
Van Den Berg’s holding history as of the first quarter:
Corning is a provider of high-performance glass, optical fiber and cable and hardware and equipment products, ceramic substrates, laboratory products and specialized polymer products, advanced optical materials and other technologies.
Corning’s historical revenue and net income:
The analysis on Corning reports that the company’s revenue has slowed down over the past year, its dividend yield is close to a 2-year low and its Piotroski F-Score is high, indicating a healthy situation.
The Peter Lynch Chart suggests that Corning is currently overvalued:
Corning has a market cap of $29.26 billion. Its shares are currently trading at around $21.02 with a P/E ratio of 15.70, a P/S ratio of 4.00 and a P/B ratio of 1.50. The company had an annual average earnings growth of 2.50% over the past five years.
Jacobs Engineering Group (JEC)
Van Den Berg’s second largest position is in Jacobs Engineering where the guru holds on to 855,738 shares. His position in the company represents 0.65% of the company’s shares outstanding and 4.6% of his total portfolio.
During the first quarter Van Den Berg reduced his position by -4.54%. The guru sold a total of 40,674 shares in the first quarter price range of $58.49 to $66.81, with an estimated average price of $62.31. The price per share has increased about 0.8% since then.
Van Den Berg’s historical holding history:
Jacobs Engineering is a professional services firm in the U.S. Its business focuses on providing a range of technical, professional and construction services to a large number of industrial, commercial and governmental clients around the world.
Jacobs Engineering’s historical revenue and net income:
The analysis on Jacobs Engineering reports that the company’s price is near a 5-year high, its operating margin is expanding and that its P/S ratio is also close to a 5-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Jacobs Engineering has a market cap of $8.29 billion. Its shares are currently trading at around $62.88 with a P/E ratio of 19.80, a P/S ratio of 0.70 and a P/B ratio of 1.90. The company had an annual average earnings growth of 12% over the past ten years.
Layne Christensen Company (LAYN)
Van Den Berg’s third largest position is in Layne Christensen. The guru holds on to 2,631,766 shares, representing 13.24% of the company’s shares outstanding and 4% of his total portfolio.
The guru increased his position in Layne Christensen 0.23% over the duration of the first quarter. Van Den Berg added 6,156 shares in the fourth quarter price range of $15.92 to $18.79, with an estimated average price of $17.59. Since then the share price has increased approximately 3.6%.
Van Den Berg’s holding history as of the first quarter:
Layne is a global water management, construction and drilling company, providing solutions to the world of essential natural resources — water, mineral and energy. The company provides sustainable products and services with an “enduring commitment to safety, excellence and integrity.”
Layne Christensen’s historical revenue and net income:
The analysis on Layne Christensen reports that the company has issued $102.33 million of debt over the past three years, its revenue has been in decline over the past year and the company had operating loss over the past three years.
Layne Christensen has a market cap of $366.5 million. Its shares are currently trading at around $18.43 with a P/S ratio of 0.40 and a P/B ratio of 1.20.
Berkshire Hathaway (BRK.B)
Van Den Berg’s fourth largest position is in Berkshire Hathaway. The guru holds on to 376,250 shares, representing 0.02% of the company’s shares outstanding and 3.9% of his total portfolio.
The guru decreased his position in Berkshire Hathaway -0.72% over the duration of the first quarter. Van Den Berg sold 2,735 shares in the first quarter price range of $108.78 to $125.17, with an estimated average price of $116.77. Since then the share price has increased approximately 5.4%.
Van Den Berg’s holding history as of the first quarter:
Berkshire Hathaway is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.
Berkshire Hathaway’s historical revenue and net income:
The analysis on Berkshire Hathaway reports that the company’s price is near a 10-year high, its P/S ratio is near a 5-year high and over the past three years the company has issued $4.9 billion of debt. The analysis also notes that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its P/B ratio is trading at near a 1-year low.
The Peter Lynch Chart suggests that the company is currently undervalued:
Berkshire Hathaway has a market cap of $288.43 billion. Its shares are currently trading at around $123.40 with a P/E ratio of 15.00, a P/S ratio of 1.60 and a P/B ratio of 1.30. The company had an annual average earnings growth of 9.30% over the past ten years.
GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.
Wells Fargo & Co (WFC)
Van Den Berg’s fifth largest position is in Wells Fargo. The guru holds on to 868,477 shares, representing 0.02% of the company’s shares outstanding and 3.6% of his total portfolio.
The guru decreased his position in Wells Fargo -0.81% over the duration of the first quarter. Van Den Berg sold 7,054 shares in the first quarter price range of $44.23 to $49.77, with an estimated average price of $46.54. Since then the share price has increased approximately 4.7%.
Van Den Berg’s holding history as of the first quarter:
Wells Fargo is a financial services companies, providing a range of retail banking and brokerage, asset and wealth management and corporate and investment banking products and services to customers.
Wells Fargo’s historical revenue and net income:
The analysis on Wells Fargo reports that the company’s revenue has been in decline over the past five years, its operating margin is expanding and its dividend yield is close to a 3-year high. The analysis also notes that the company’s price is sitting near its 10-year high.
The Peter Lynch Chart suggests that the company is currently undervalued:
Wells Fargo has a market cap of $242.52 billion. Its shares were traded at around $48.97 with a P/E ratio of 12.70, a P/S ratio of 3.10 and a P/B ratio of 1.60. The company offers a dividend yield of 2.50%. Wells Fargo had an annual average earnings growth of 4.60% over the past ten years.
Check out Arnold Van Den Berg’s complete first quarter portfolio here.
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