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Tweedy Browne Adds to 5 Holdings, Trims 2 Others in 3rd Quarter

- By David Goodloe

Tweedy Browne (Trades, Portfolio) made five modest additions to holdings in its portfolio and two reductions that were more substantial during the third quarter.


The guru's most significant addition was the purchase of 646,014 shares in HSBC Holdings PLC (LSE:HBA), a London-based banking and financial services company, for an average price of 5.31 pounds ($6.58) per share. The acquisition had a 0.06% impact on the portfolio and increased the guru's position by more than 3%.

Tweedy Browne (Trades, Portfolio)'s stake is now 22,104,833 shares, which is 0.11% of HSBC Holdings' outstanding shares and 2.22% of Tweedy Browne (Trades, Portfolio)'s total assets. Tweedy Browne (Trades, Portfolio) is HSBC Holdings' leading shareholder among the gurus.

HSBC Holdings has a price-earnings (P/E) ratio of 18.38, a forward P/E of 13.26, a price-book (P/B) ratio of 0.92 and a price-sales (P/S) ratio of 2.96. GuruFocus gives HSBC Holdings a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10 with return on equity (ROE) of 5.73% that is lower than 68% of the companies in the Global Banks - Global industry and return on assets (ROA) of 0.43% that is lower than 75% of the companies in that industry.

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HSBC Holdings sold for 6.19 pounds per share Tuesday. The DCF Calculator gives HSBC Holdings a fair value of 3.65 pounds.

Last week, HSBC Holdings declared a dividend of 10 cents (in U.S. currency) per share payable on Dec. 6 to shareholders of record on Oct. 21.

Tweedy Browne (Trades, Portfolio) raised its position in GlaxoSmithKline PLC (GSK.L), a British pharmaceutical company, by more than 1% with the purchase of 135,265 shares for an average price of 16.54 pounds per share. The transaction had a 0.04% impact on the portfolio.

With the purchase, Tweedy Browne (Trades, Portfolio)'s stake is now 12,062,317 shares, which is 0.25% of GlaxoSmithKline's outstanding shares and 3.44% of Tweedy Browne (Trades, Portfolio)'s total assets. Tweedy Browne (Trades, Portfolio) is GlaxoSmithKline's leading shareholder among the gurus.

GlaxoSmithKline has a forward P/E of 16.89, a P/B of 153.09 and a P/S of 3.50. GuruFocus gives GlaxoSmithKline a Financial Strength rating of 4/10 and a Profitability and Growth rating of 5/10 with ROE of 0.75% that is lower than 68% of the companies in the Global Drug Manufacturers - Major industry and ROA of 0.06% that is lower than 67% of the companies in that industry.

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GlaxoSmithKline sold for 17.19 pounds per share Tuesday. The DCF Calculator gives GlaxoSmithKline a fair value of 0 pounds.

On Jan. 1, 2017, Emma Walmsley will join GlaxoSmithKline's board and become its chief executive officer in March, the first woman to be in charge of a major pharmaceutical company.

Tweedy Browne (Trades, Portfolio) boosted its stake in DBS Group Holdings Ltd. (D05.SI), a Singapore-based banking and financial holdings company, by more than 2% with the purchase of 253,887 shares for an average price of 15.39 Singapore dollars ($11.20) per share. The deal had a 0.04% impact on Tweedy Browne (Trades, Portfolio)'s portfolio.

Tweedy Browne (Trades, Portfolio)'s stake in DBS Group is now 12,787,454 shares.

DBS Group has a P/E of 2.25, a forward P/E of 7.99, a P/B of 0.92 and a P/S of 3.77. GuruFocus gives DBS Group a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 10.64% that is higher than 66% of the companies in the Global Banks - Regional - Asia industry and ROA of 0.96% that is higher than 56% of the companies in that industry.

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DBS Group sold for 15.37 Singapore dollars per share Tuesday. The DCF Calculator gives DBS Group a fair value of 84.63 Singapore dollars with an 82% margin of safety.

Tweedy Browne (Trades, Portfolio) hiked its stake in United Overseas Bank Ltd. (U11.SI), an investment banking and financial services company based in Singapore, by more than 2% with the acquisition of 218,256 shares for an average price of 18.4 Singapore dollars per share. The transaction had a 0.04% impact on the portfolio.

The stake in United Overseas Bank is now 10,089,656 shares.

United Overseas Bank has a P/E of 5.48, a forward P/E of 9.35, a P/B of 0.96 and a P/S of 4.00. GuruFocus gives United Overseas Bank a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 10.47% that is higher than 65% of the companies in the Global Banks - Regional - Asia industry and ROA of 1.00% that is higher than 59% of the companies in that industry.

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United Overseas Bank sold for 18.77 Singapore dollars per share Tuesday. The DCF Calculator gives United Overseas Bank a fair value of 36.81 Singapore dollars with a 49% margin of safety.

Tweedy Browne (Trades, Portfolio) raised its position in AGCO Corp. (AGCO), a Georgia-based agricultural equipment manufacturer, by more than 9%. The guru purchased 50,507 shares for an average price of $48.01 per share. The deal had a 0.03% impact on the portfolio.

Tweedy Browne (Trades, Portfolio) is AGCO's leading shareholder among the gurus with 776,392 shares in its portfolio.

AGCO has a P/E of 23.51, a forward P/E of 20.16, a P/B of 1.42 and a P/S of 0.61. GuruFocus gives AGCO a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 6.36% that is higher than 64% of the companies in the Global Farm & Construction Equipment industry and ROA of 2.67% that is higher than 61% of the companies in that industry.

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AGCO sold for $51.7 per share Tuesday. The DCF Calculator gives AGCO a fair value of $23.54.

Tweedy Browne (Trades, Portfolio) trimmed its holding in Hengdeli Holdings Ltd. (HKSE:03389), a Hong Kong-based wristwatch retailer, by more than 35%, selling 10,216,000 shares for an average price of 84 cents in Hong Kong dollars (11 cents) per share. The transaction had a -0.02% impact on the portfolio.

Tweedy Browne (Trades, Portfolio)'s remaining stake of 18,836,000 shares is 0.39% of Hengdeli's outstanding shares and 0.03% of Tweedy Browne (Trades, Portfolio)'s total assets. Hengdeli's leading shareholder among the gurus is Oakmark Intl Small Cap (Trades, Portfolio) with a stake of 225,989,000 shares. Oakmark's stake is 4.73% of Hengdeli's outstanding shares and 1.12% of the guru's total assets.

Hengdeli has a P/B of 0.56 and a P/S of 0.25. GuruFocus gives Hengdeli a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of -0.36% that is lower than 72% of the companies in the Global Specialty Retail industry and ROA of -0.18% that is lower than 71% of the companies in that industry.

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Hengdeli sold for 87 cents per share in Hong Kong dollars Tuesday. The DCF Calculator gives Hengdeli a fair value of -1 cent in Hong Kong dollars.

Tweedy Browne (Trades, Portfolio) reduced its position in T Hasegawa Co. Ltd. (TSE:4958), a Tokyo-based producer of flavors and fragrances, by more than 27% with the sale of 51,800 shares for an average price of 1,834.98 Japanese yen ($17.76) per share. The deal had a -0.02% impact on Tweedy Browne (Trades, Portfolio)'s portfolio.

The company has a P/E of 22.83, a P/B of 0.96 and a P/S of 1.60. GuruFocus gives the company a Financial Strength rating of 9/10 and a Profitability and Growth rating of 6/10 with ROE of 4.27% that is lower than 65% of the companies in the Global Specialty Chemicals industry and ROA of 3.37% that is lower than 54% of the companies in that industry.

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T Hasegawa sold for 1,836 yen per share Tuesday. The DCF Calculator gives T Hasegawa a fair value of 859.98 yen.

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

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This article first appeared on GuruFocus.