The Yacktman Fund (Trades, Portfolio) and Yacktman Focused Fund (Trades, Portfolio) acquired positions in Bollore SA (XPAR:BOL, Financial) in the third quarter. The former also established a position in Micro Focus International PLC (MFGP, Financial).
The funds, which are managed by Stephen Yacktman and Jason Subotky, seek long-term capital appreciation and current income. The Focused Fund’s current portfolio consists of 21 stocks, and the Yactman Fund’s portfolio is composed of 38 stocks. The technology and consumer defensive sectors have the heaviest weighting in both portfolios.
Bollore
In Bollore, the managers established a holding of 519,699 shares for the Focused Fund and a holding of 519,698 shares for the Fund. The average price per share paid was 4.01 euros ($4.71), and the positions were given 0.08% and 0.04% portfolio space.
The French transportation company has a market cap of 11.88 billion euros; its shares were trading around 4.09 euros on Tuesday with a price-earnings (P/E) ratio of 27.33, a price-book (P/B) ratio of 1.33 and a price-sales (P/S) ratio of 1.18.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked Bollore’s financial strength 5 of 10 and its profitability and growth 5 of 10. The company’s trailing dividend yield and forward dividend yield are both 1.46%. The dividend payout ratio is 40%.
The company reported its first-half 2017 results on Sept. 1, posting operating income of 443 million euros and net income of 333 million euros. It also announced it sold its 59.2% stake in Havas (XPAR:HAV) to Vivendi (XPAR:VIV) in July for 2.3 million euros.
Among the six gurus invested in the company, Charles de Vaulx (Trades, Portfolio) has the largest position with 0.86% of outstanding shares. The IVA International Fund (Trades, Portfolio), the Invesco European Growth Fund (Trades, Portfolio) and Francisco GarcĂ Âa ParamĂ©s (Trades, Portfolio) are also shareholders.
Micro Focus
The Fund’s largest new purchase for the quarter was 247,187 shares of Micro Focus for an average price of $30.87 per share, giving it 0.13% portfolio space.
The U.K.-based software company has a market cap of $14 billion; its shares were trading around $32.23 on Tuesday with a P/E ratio of 41.93, a P/B ratio of 4.06 and a P/S ratio of 4.91.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Micro Focus’ financial strength 5 of 10 and its profitability and growth 8 of 10. The company does not pay a dividend.
On Sept. 1, the company announced it had completed its merger with Hewlett Packard Enterprise’s (HPE, Financial) software business, making it the world’s seventh-largest pure-play software company.
The Fund also held the company’s American depository receipts on the over-the-counter market (MCFYY) before selling out in the third quarter. It is the company’s sole guru shareholder.
In addition, the Focused Fund reduced its positions in Samsung Electronics Co. Ltd. (XKRX:005930, Financial), Oracle Corp. (ORCL, Financial) and Coca-Cola Co. (KO, Financial) during the quarter. The Fund curbed its Samsung and Oracle positions as well, but also trimmed its Unilever NV (UN, Financial) holding and exited Staples Inc. (SPLS, Financial).
Both funds added to their Infosys Ltd. (INFY, Financial) holdings during the quarter.
Disclosure: I do not own any stocks mentioned.
