Top 5 Holdings
K.J. Harrison & Partners INC’s top five holdings are:
- Cameco Corp. (CCJ)
- Intel Corporation (INTC),
- Microsoft Corporation (MSFT)
- General Electric Co. (GE) and
- JPMorgan Chase & Co. (JPM).
The fund is very bullish on Cameco Corp., allocating 2.9% of the portfolio. In the last quarter this top position increased by 12.6% and represents and market value of $9673000.0. The key metrics to analyze in a company are the Return on Equity (ROE) and Return on Assets (ROA). The first analyzes how much profitability the owners of the firm can extract from the core business while the second measures the return the business generates over its assets. Some investors compare both metrics to the cost of capital or WACC to evaluate if the company truly generates value for shareholders. We will focus on evaluating both the ROE and ROA. In the case of CCJ, it has a below than average ROE of 5.96% and ROA of 3.96%. Revenue growth has been 4.70% and EPS growth of -14.80%. Cameco Corp. has operating margins of 10.85% and net margin of 13.06%. It trades at 19.20x earnings and 3.20 earnings yield.
Biggest New Buys
In the last quarterly filling, K.J. Harrison & Partners INC reported new positions in:
- International Game Technology (IGT)
- Telephone & Data Systems Inc. (TDS)
- F5 Networks, Inc. (FFIV) and
- Ocwen Financial Corp. (OCN).
International Game Technology has a ROE of 21.74%, which is higher than my desired threshold of 15% I look when analyze companies. The fund invested in $3412000.0 in this company. Telephone & Data Systems Inc. has an operating margin of 4.80% and K.J. Harrison & Partners allocated 0.3484% of its portfolio in this company. FFIV has a high P/E of 31.10 and 3 year revenue growth of 19.80%. This position represents 0.3466%. Ocwen Financial Corp. has double-digit operating margins of 16.45% and trades at 16.10x profits.
Major positions closed
The fund liquidated the entire position in the following stocks:
- Anheuser-Busch InBev (BUD)
- ADT CORP (ADT),
- Masonite International CORP (DOOR) and
- Canadian Natural Resources Limited (CNQ).
Anheuser-Busch InBev represented 1% of the previous portfolio while ADT, Masonite International and CNQ represented 0.6440%, 0.3872% and 0.2865% respectively. None of the liquidated positions were more than 5% of the previous portfolio which means that K.J. Harrison & Partners INC did not liquidate any major holding.