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Arnold Van Den Berg Invests in 4 New Buys in 4th Quarter

- By David Goodloe

Arnold Van Den Berg (Trades, Portfolio), founder of Century Management, added four new positions to the portfolio in the fourth quarter.


The largest purchase was 333,386 shares of Cerner Corp. (CERN), a health information technology provider based in North Kansas City, Missouri, for an average price of $53.08 per share. The transaction had a 2.5% impact on the portfolio.

Vanguard Health Care Fund (Trades, Portfolio) is Cerner's leading shareholder among the gurus with a stake of 16,949,730 shares. The stake is 5.14% of Cerner's outstanding shares.

Cerner has a price-earnings (P/E) ratio of 30.12, a forward P/E ratio of 22.08, a price-book (P/B) ratio of 4.97 and a price-sales (P/S) ratio of 3.97. GuruFocus gives Cerner a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10 with return on equity (ROE) of 15.88% that is higher than 76% of the companies in the Global Health Information Services industry and return on assets (ROA) of 11.16% that is higher than 83% of the companies in that industry.



Cerner sold for $55.48 per share at market close Monday. The DCF Calculator gives Cerner a fair value of $48.07.

The guru invested in 117,685 shares of Occidental Petroleum Corp. (OXY), an oil and gas company based in Houston, for an average price of $71.02 per share. The deal had a 1.33% impact on the portfolio.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 18,532,481 shares. The stake is 2.42% of Occidental's outstanding shares.

Occidental has a forward P/E ratio of 45.05, a P/B ratio of 2.24 and a P/S ratio of 4.62. GuruFocus gives Occidental a Financial Strength rating of 5/10 and a Profitability and Growth rating of 5/10 with an ROE of -2.49% that is higher than 76% of the companies in the Global Oil & Gas E&P industry and an ROA of -1.35% that is higher than 79% of the companies in that industry.



Occidental sold for $62.88 per share Monday. The DCF Calculator gives Occidental a fair value of $-14.02.

The guru bought 309,055 shares of Atkore International Group Inc. (ATKR), an Illinois-based health care solutions company, for an average price of $20.56 per share. The transaction had a 1.17% impact on the portfolio.

Van Den Berg is Atkore's leading shareholder among the gurus.

Atkore has a P/E ratio of 24.11, a forward P/E ratio of 16.03, a P/B ratio of 5.74 and a P/S ratio of 1.09. GuruFocus gives Atkore a Financial Strength rating of 6/10 and a Profitability and Growth rating of 3/10 with ROE of 31.24% that is higher than 95% of the companies in the Global Diversified Industrials industry and ROA of 6.09% that is higher than 73% of the companies in that industry.



Atkore sold for $25.52 per share Monday. The DCF Calculator gives Atkore a fair value of $11.34.

The guru purchased 69,740 shares of CVS Health Corp. (CVS), a Rhode Island-based health care retail chain, for an average price of $80.91 per share. The deal had a 0.87% impact on the portfolio.

Barrow, Hanley, Mewhinney & Strauss is CVS' leading shareholder among the gurus with a stake of 18,280,528 shares. The stake is 1.78% of CVS' outstanding shares.

CVS has a P/E ratio of 16.38, a forward P/E ratio of 13.74, a P/B ratio of 2.32 and a P/S ratio of 0.49. GuruFocus gives CVS a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10 with an ROE of 14.68% that is higher than 70% of the companies in the Global Health Care Plans industry and ROA of 5.70% that is higher than 72% of the companies in that industry.



CVS sold for $80.44 per share Monday. The DCF Calculator gives CVS a fair value of $78.98.

Disclosure: I do not own any stocks mentioned in this article.

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This article first appeared on GuruFocus.

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