Arnold Van Den Berg (Trades, Portfolio), manager of Austin-based Century Management, reported on Friday buying three transportation stocks in the first three months of 2017, expanding the largest sector in his portfolio, industrial stocks.
Century Management has bulked up its bet on industrial stocks over the past three quarters, from 20.9% of its portfolio at the end of June to 29.1% at the end of March. Industrial stocks – which include industries like aerospace and defense, transportation and logistics, construction and airlines – have gained 5.03% year to date, making them the third worst-performing sector of the S&P 500.
Van Den Berg, who embraces a value investing philosophy, buys undervalued securities as part of his strategy that includes taking advantage of market inefficiencies and determining return by price. The second-biggest sector in his portfolio is the S&P 500’s worst performer of the year, down 9.6%.
In the first quarter, Van Den Berg selected these stocks to add to his portfolio: Nordic American Takers Ltd. (NAT), PHI Inc. (PHIIK) and Ardmore Shipping Corp. (ASC).
Nordic American Tankers Ltd. (NAT)
Van Den Berg purchased 1,202,280 shares of Nordic American Tankers. The price for the stock averaged around $8 in the quarter.
Nordic American Tankers Ltd. has a market cap of $832.120 million; its shares were traded around $8.36 with a P/E ratio of 11.92 and P/S ratio of 2.18. The trailing 12-month dividend yield of Nordic American Tankers Ltd. is 13.62%. The forward dividend yield of Nordic American Tankers Ltd. is 13.6%.
PHI Inc. (PHIIK)
Van Den Berg bought 638,314 shares of PHI Inc. The price for the stock averaged around $15 in the quarter.
PHI Inc. has a market cap of $189.03 million; its shares were traded around $11.85 with a P/S ratio of 0.29. PHI Inc. had an annual average earnings growth of 2.3% over the past five years.
Shipping Corp. (ASC)
Van Den Berg bought 758,511 shares of Ardmore Shipping Corp. The price for the stock averaged around $7 in the quarter.
Ardmore Shipping Corp. has a market cap of $252.14 million; its shares were traded around $6.95 with a P/E ratio of 38.7 and P/S ratio of 1.22. The trailing 12-month dividend yield of Ardmore Shipping Corp. stocks is 3.87%. The forward dividend yield of Ardmore Shipping Corp. is 9.53%. Ardmore Shipping Corp. had an annual average earnings growth of 30.1% over the past five years.
See Arnold Van Den Berg (Trades, Portfolio)’s portfolio here.
