Neil woodford's portfolio changes4 Sep 2013 17:47
Cheap tobacco
Woodford slightly trimmed back his holding of British American Tobacco, but whacked up his stake in Imperial Tobacco (LSE: IMT) (NASDAQOTH: ITYBY.US). The master investor purchased a net 2.55 million of the latter's shares for around £60m at what I calculate to be an average buy price of 2,339p.
This is Woodford the contrarian value investor at work, as the earnings and dividend valuations within the table below show.
Company Current share price Forward P/E Forward dividend yield
Imperial Tobacco 2,132p 9.7 5.8%
British American Tobacco 3,255p 14.7 4.4%
Cheap pharma
Woodford added over a million shares to the High Income fund's stake in AstraZeneca (LSE: AZN) (NYSE: AZN.US) at a net cost of getting on for £33m. My sums say he paid an average of 3,026p a share. As with the tobacco companies, Woodford upped his stake in the lowlier rated of the two FTSE 100 big pharma firms.
Company Current share price Forward P/E Forward dividend yield
AstraZeneca 3,178p 9.6 5.6%
GlaxoSmithKline 1,645p 14.2 4.4%
A FTSE 100 financial
Woodford, who famously sold out of big financials before they were hammered by the global banking crisis, has invested in a FTSE 100 financial company for the first time since. What a turn up for the books that is! The company in question is insurer Legal & General. Woodford made a relatively small purchase of 2 million shares. Unfortunately, I can't tell you how much he paid, but the average price during the period was 166p and the shares are trading at 187p today.
Will Woodford further build his stake in L&G (my guess is yes)? And is he now ready to invest in more FTSE 100 financials (I'm not so sure about that one)? We'll have to wait and see.