Greatest net guru buys in Q2

More investment pros bought these 5 stocks -- and less sold them.

By GuruFocus.com Sep 10, 2013 10:59AM

Stock market report (© Corbis)The S&P 500 Screener on GuruFocus shows the stocks that gurus bought and sold the most recently. A new feature, Net Buys, displays the stock the gurus bought the most stocks minus their sells. This gives a better picture of the stocks on which the gurus have more of a consensus.


According to the net buys of the S&P 500 ($INX), the most-bought stocks in the second quarter were: Oracle (ORCL), Cabot Oil & Gas (COG), Stryker (SYK), Lincoln National (LNC) and Schlumberger (SLB).


Oracle (ORCL)

Oracle was the net most-purchased stock of gurus in the second quarter. With 30 gurus buying and 10 selling, it had 20 net buys.


Lou Simpson has the most invested in the company, at 9.2% of his managed assets. Jeremy Grantham owns the largest chunk of the company, at 1.08% of shares outstanding.


Oracle is an enterprise software and hardware products company that focuses on the cloud and data centers. It recently appeared undervalued by the Peter Lynch chart:


After a sharp drop in the first quarter and another in the second, Oracle's stock is down 1.59% year to date. 


For its fiscal 2013 fourth quarter, the company reported flat year-over-year revenue at $10.9 billion, and 10.9% higher GAAP earnings of $3.8 billion. Over the year, the company returned almost 90% of its $14 billion in operating cash flow to shareholders in the form of dividends and share repurchases. It ended the fiscal year with $32 billion in cash on its balance sheet.

Oracle has a market cap of $151.98 billion; its shares were traded at around $32.82 with a price-to-earnings ratio of 14.40 and a price-to-sales ratio of 4.20. The dividend yield of Oracle stock is 0.60%. Oracle had an annual average earnings growth of 20% over the past 10 years. GuruFocus rated Oracle the business predictability rank of 5-star.


Cabot Oil & Gas (COG)

Cabot Oil & Gas had 14 net buys, with 15 buys and one sell. T Boone Pickens is the most invested, with 4.9% of his assets managed in the stock. RS Investment Management owns the most of the company, with 1.47% of its shares outstanding.


The stock price year to date climbed 57%.


Cabot is an oil and gas exploration and production company focused on North America. The company reported second quarter revenue of $449.7 million, an increase from $265.7 million the previous year. Quarterly net income increased 148% to $89.1 million, primarily due to increased efficiency in its Marcellus Shale drilling program.


Cabot Oil & Gas has a market cap of $16.39 billion; its shares were traded at around $38.89 with a price-to-earnings ratio of 78.40 and a price-to-sales ratio of 11.10. The dividend yield of Cabot Oil & Gas stocks is 0.10%. Cabot Oil & Gas had an annual average earnings growth of 12.5% over the past 10 years. GuruFocus rated Cabot Oil & Gas the business predictability rank of 2.5-star.


Stryker (SYK)

Stryker had nine net buys, with nine buys in total and no sells. The Yacktman Focused Fund has the highest percentage invested in the company, at 4.1% of the total assets managed. Donald Yacktman also has the largest company ownership, at 3.2% of the shares outstanding.


Stryker's price year to date has increased 26%, trading at $69.16 Monday.



Stryker is a medical technology company. It reported second quarter consolidated net sales growth of 5% to $2.2 billion compared to the previous year, due to increased unit volume and changes in product mix. Acquisitions contributed 0.6%. Its net earnings slid to $213 million from $325 million the previous year.

Stryker has a market cap of $26.15 billion; its shares were traded at around $69.16 with a price-to-earnings ratio of 23.20 and a price-to-sales ratio of 3.00. The dividend yield of Stryker stock is 1.50%. Stryker had an annual average earnings growth of 11.3% over the past 10 years. GuruFocus rated Stryker the business predictability rank of 3.5-star.


Lincoln National (LNC)

Eight gurus net bought Lincoln National in the second quarter, with ten buying and two selling.


Ron Muhlenkamp has the largest fund allocation in the stock, at 2.3% of his total assets managed. Brian Rogers has the largest position, owning 1.64% of shares outstanding. Year to date the company's stock gained 71%.



Lincoln is a holding company operating insurance and retirement subsidiaries. The company reported second quarter revenue of $2.999 billion, up from $2.898 billion the previous year. Its net income declined slightly to $317 million from $321 million the previous year.

Lincoln National has a market cap of $11.7 billion; its shares were traded at around $44.23 with a price-to-earnings ratio of 9.60 and a price-to-sales ratio of 1.10. The dividend yield of Lincoln National stocks is 1.00%.


Schlumberger (SLB)

Eight gurus net purchased Schlumberg in the second quarter. Gurus were more divided on it, as 15 bought and seven sold.


Manning & Napier Advisors has the highest percentage of their portfolio allocated to Schlumberger, at 4.9% of assets managed. The largest investor is Dodge & Cox, which owns 3% of the company's shares outstanding.


Year to date, Schlumberger's stock has gained almost 25%.



In the second quarter, Schlumberger reported revenue of $11.18 billion, up from $10.34 billion the previous year. Net income also jumped to $2.095 billion, from $1.14 billion from the second quarter the previous year. The company also during the quarter almost completely finished its $8 billion share repurchase program it began in 2008, repurchasing 6.8 million shares. It has already instituted a new repurchase program of $10 billion effective through June 2008.

Schlumberger has a market cap of $114.39 billion; its shares were traded at around $86.45 with a price-to-earnings ratio of 18.30 and a price-to-sales ratio of 2.60. The dividend yield of Schlumberger stocks is 1.40%. Schlumberger had an annual average earnings growth of 15% over the past 10 years.

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