Newest Guru David Abrams Increases Stakes in MGI

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Feb 23, 2015

David Abrams (Trades, Portfolio) of Abrams Capital Management recently increased his stakes in his latest position– Moneygram International Inc (MGI, Financial).

Abrams founded his firm in 1999 utilizing the value investing strategies he learned from working at Seth Klarman (Trades, Portfolio)'s Baupost Group. Investing in the U.S. public equity market, as well as having fundamental analysts and doing in-house research has allowed the firm to continuously earn annual returns around 20%.

Abrams' portfolio consists of 15 stocks, with a total value of around $1.9 billion and a quarter over quarter turnover of 8%.

Abrams purchased 2,919,447 shares of Moneygram at an average price of $9.90 per share, increasing his position by 6.65%.

Moneygram was incrporated in 2003 as a money transfer and payment services company. The company also offers bill payment services, money order services and check processing.

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According to the Peter Lynch earnings line,, the stock is valued at $17.20 and is currently trading at $8.54 per share, indicating the stock may be undervalued.

The company's earnings per share for the trailing 12 months as of September 2014 was $1.21, with a growth rate at 77.90%.

The current P/E ratio is 6.96, close to the 10-year low of 6.86.

Moneygram's revenue per share for the past 12 months was $22.05. Over the past five years, revenue has been declining. The revenue per share growth rate was -40.50%.

The P/S ratio is currently 0.39, which is close to the three-year low of 0.38.

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