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Last Update: 12-31-1969

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  • 1-800^349^6921 Quickbooks Desktop Support Number Quickbooks Error Support Number

    1-800^349^6921 Quickbooks Desktop Support Number Quickbooks Error Support Number

      


  • This Canadian railway company looks Bullish

    Company Overview: Canadian National Railway Company (NYSE:CNI) is engaged in the rail and related transportation business. CN’s network of approximately 20,000 route miles of track spans Canada and mid-America, uniquely connecting three coasts: the Atlantic, the Pacific and the Gulf of Mexico. CN’s extensive network and efficient connections to all Class I railroads provide CN customers access to all three North American Free Trade Agreement (NAFTA) nations. A true backbone of the economy, CN handles over $250 billion worth of goods annually and carries more than 300 million tons of cargo, serving exporters, importers, retailers, farmers and manufacturers.


    The company maintained strong discipline in realigning resources to keep them in line with reduced freight demand despite challenging volume environment in the second quarter end. The company witnessed an improved operating ratio.

      


  • Why Google Cloud Will Stay Behind The Curve For A Long Time

    Any discussion on cloud must necessarily include Alphabet’s Google (NASDAQ:GOOG). Why? Because they have been one of the pioneers of cloud, initially using their entire capacity for their own needs but over time maturing into a provider of cloud services such as infrastructure, software and so on.


    But Google is not one of the those companies that moves fast. Take Oracle (NYSE:ORCL), for example. Despite shying away from the cloud for several years, they’ve realized that their legacy businesses are just not made for the future. Now, they’re trying desperately to grow their cloud revenues in an attempt to compensate for declines in software and hardware income.

      


  • Learning From Investment Failure


    In my US stock portfolio, I have made two investment mistakes that have the largest hit to my performance. I have closed them out by end of last month. I thought I’d write something to review my investment failure- what kind of mistake I have made and why I did it wrong and how I can learn from these experiences so to improve my investment in the future.

      


  • Leman Capital Management Continues to Top Performances amongst Quant-Focused Hedge Funds

    Algorithmic trading or simply Algo-trading is now becoming common place amongst hedge funds as they continue to hedge their positions in equities with automated trading in currencies. While global markets continue to struggle due to unpredictable economies, the currency market has become one of the prime candidates to provide hedging opportunities.


    Most hedge funds have historically identified themselves with equity investments, but according to recent data, the picture appears to be changing as more players continue to expand their portfolios by including automated currency trading.

      


  • The Invesco European Growth Fund adds to its stake in Haci Omer Sabanci Holding

    During the second quarter the Invesco European Growth Fund (Trades, Portfolio) added to its stake in Haci Omer Sabanci Holding (SAHOL- IST) The trade had a 0.33% impact on the fund’s portfolio, it now owns 11,153,719 shares of the company. Haci Omer Sabanci Holding is a financial conglomerate Turkish holding company that began its operations in 1967. The company conducts its business in banking, energy, cement, retail, insurance, and industrial products. It also engages in segments like technology, distribution and tourism.   


  • This Furniture Company is Worth a Look

    Company Overview: Incorporated in 1924, Hooker Furniture (NASDAQ:HOFT) is one of the most respected furniture brands in the world. The company’s February 2016 acquisition of Home Meridian International positions Hooker to be ranked as one of the top five sources for the U.S. furniture market.


    An importer of residential wood and metal furniture and a manufacturer and importer of upholstered furniture, Hooker Furniture is based in Martinsville, Va. Major wood furniture categories include bedroom, dining, accent, home entertainment and home office furniture in the upper-medium price points sold under the Hooker Furniture brand.

      


  • Steve Romick reduces stake in Henkel

    During the second quarter guru Steve Romick trimmed his stake in Henkel (HEN- XTER). The company is headquartered in Düsseldorf, Germany. It operates its business worldwide in three business areas: Adhesive technologies, beauty care, and laundry & home care.


    Henkel’s largest business area is its adhesive solutions segment of its business. The company learned the benefit of using adhesive technologies through a serendipitous accidental discovery that occurred in 1923. After the labeling of some of its own consumer products were threatened due to an interruption in the supply of glue. Henkel saw that there was hidden opportunity in adhesive technologies, and it began to produce its own adhesives. Fast forward 93 years later, and Henkel's largest segment of its business is its adhesive technologies. The company provides adhesive technologies in the packaging and consumer goods, transport and metal, electronics, as well as consumers, craftsmen, and building. Its top brands for its adhesive technologies are Loctite, Technomelt, and Teroson.

      


  • Tyson Foods is a Long-Term Stock

    Company Overview


    Tyson Foods, Inc. (NYSE:TSN), with headquarters in Springdale, Arkansas, is one of the world's largest food companies with leading brands such as Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells and State Fair. It’s a recognized market leader in chicken, beef and pork as well as prepared foods, including bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, tortillas and desserts.

      


  • Is Disney Worth Holding on to?

    A recent Bloomberg entitled, “TV Loses Grip on Eyes and Ads That Want Them” had stated some worrying signs that most media-related long-term investors should anticipate. According to the article, money spent globally on commercial spots in YouTube videos, Facebook feeds and news websites will overtake the ad dollars spent on TV commercials for the first time in 2017.


      


  • Ford and General Motors: Two Ways to Skin a Cat

    Both GM (NYSE:GM) and Ford (NYSE:F) are extremely reliant on the U.S. market for their sales numbers and bottom-line profitability because, outside U.S., they have neither the numbers nor the profitability to support their respective companies


    During the second quarter, GM’s North America unit posted an operating income before taxes of $3.647 billion, and the group’s total operating income before taxes, which includes all regions, came in at $3.721 billion. It would be an understatement to say that they are dependent on the U.S. market, it’s very much their bread and butter, not to mention the plate they’re eating out of!

      


  • Illinois Tool Works Inc (ITW) Chairman & CEO Ernest Scott Santi Sold $8.5 million of Stocks


  • Alphabet Inc (GOOG) CEO Lawrence Page Sold $24.9 million of Stocks


  • Eldorado: the stock is set to rally as soon as the Turkish dust will settle

    Investors see Eldorado Gold Corp (NYSE:EGO) as a cheap gold stock in terms of price to book value, when compared to its peers and even being undervalued by the stock market when its balance sheet is under scrutiny and its pipeline of growth projects is taken into account.


      

  • Stocks Mixed as FOMC Begins Two-Day Meeting

    U.S. market indexes were mixed on Tuesday. For the day the Dow Jones Industrial Average was lower at 18473.75 for a loss of -19.31 points or -0.10%. The S&P 500 was higher at 2169.18 for a gain of 0.70 points or 0.03%. The Nasdaq Composite closed higher at 5110.05 for a gain of 12.42 points or 0.24%. The VIX Volatility Index was higher at 13.05 for a gain of 0.18 points or 1.40%.


    In the Dow Jones Industrial Average, stocks leading gains and losses included the following:

      


  • Caterpillar Rallies Despite Global Sales Slump

    Shares in Caterpillar rallied Tuesday after the heavy machinery manufacturer skated past Wall Street’s quarterly earnings expectations.


    The world’s largest construction and mining equipment company posted earnings of $1.09 per share for the second quarter of 2016, excluding major restructuring costs. Analysts had been anticipating an EPS of just 96 cents.

      


  • David Einhorn Replaces Michael Kors, Time Warner With Consol Energy, AerCap in Top 5

    David Einhorn (Trades, Portfolio) demoted Michael Kors (NYSE:KORS) and Time Warner (NYSE:TWC) from the top five positions in his portfolio during the second quarter, favoring AerCap Holdings (NYSE:AER) and Consol Energy (NYSE:CNX).


    According to a letter out today, three holdings remained constant in his hedge fund, Greenlight Capital’s portfolio – gold, General Motors (NYSE:GM) and Apple (NASDAQ:AAPL) – which has spent more than a year at the top. No details about the positions will be reported until Einhorn discloses his second-quarter portfolio in the next few weeks.

      


  • Is Sprint’s 1st-Quarter Performance Repeatable?

    Sprint’s (NYSE:S) stock skyrocketed to above $6 after the company posted better-than-expected results and recorded its fourth straight quarter of growth in its postpaid phone base. It took almost two years for Sprint to get above the $6 level so this is indeed good news for its investors.


    I have been skeptical about Sprint’s fortunes, as the U.S. market is approaching peak penetration in smartphone growth; and I covered that in detail in my article "Sprint Running Out of Steam as Market Nears Peak Penetration."

      


  • Steven Cohen Boosts Position in Alon USA Energy

    Steven Cohen (Trades, Portfolio) of Point72 Asset Management raised his stake in Alon USA Energy Inc. (NYSE:ALJ), a Dallas-based oil and gas refining and marketing company, by nearly 210% with the purchase of 2,353,738 shares on July 14.

    Cohen, who initiated his position in Alon USA Energy with the acquisition of nearly 50,000 shares for an average price of $9.53 per share in the first quarter of 2011, paid $6.66 per share in his latest deal. The transaction had a 0.12% impact on his portfolio.  


  • Amphenol Corp (APH) President & CEO Richard Adam Norwitt Sold $15.5 million of Stocks


  • UPS: The Metric to Watch

    UPS will be reporting its second quarter earnings results on July 29 before markets open.


    2015 was a great year for United Parcel Service (NYSE:UPS), and the trend continued during the first quarter of the current fiscal with the company posting 10% growth in quarterly income while revenue increased by 3.2% to $14.42 billion.

      


  • Hyundai Reports 10th Consecutive Quarterly Profit Drop

    Heading into 2012, Hyundai Motor Co. (XKRX:005380) was the fifth-largest carmaker in the world based on sales, but circumstances have shifted, and the South Korean company reported its 10th consecutive quarterly profit drop Tuesday.


    Even though Hyundai’s sales were up in China with the introduction of new models in the market, weak demand for sedans and higher marketing costs for Hyundai’s luxury brand were blamed for the decline. Domestic sales were up, but lower sales overseas offset those gains.

      


  • Singapore Based Haw Par Selling at a Discount to NAV

    Haw Par (HAWPF, HAWPY) is a Singapore based conglomerate that is trading at a discount to net asset value. The company has been around for over 100 years and has holdings in real estate, theme parks, health care, and other investments. It is held by several value funds.


    There are 219 million shares and the market cap is SG$2 billion ($1.477 billion). It takes 74 cents to buy one Singapore dollar. In 2015, there was an ordinary dividend of SG14 cents and a special dividend of SG15 cents. The ordinary dividend yield is 1.53%.

      


  • Why I’m Still Bullish On Qualcomm

    I have been bullish on Qualcomm (NASDAQ:QCOM) for several months now and the stock has delivered stellar returns in the reference time period. Qualcomm’s turnaround is gaining pace and I think the stock can continue moving higher on the back of successful management and implementation.


    Achieving Success in IoT Segment

      


  • Apple’s Weak Earnings Might Provide a Buying Opportunity

    Apple (NASDAQ:AAPL) has been facing many problems over the last few months and it doesn’t look like the issues are going to end soon. Apple is scheduled to report earnings today, and I am expecting the company to report weak earnings for several reasons, which are mentioned below.


    Apple’s Momentum in China

      


  • Phillips 66: Value & Yield on an Overpriced Market

    Reasonably safe stocks yielding 3%+ are becoming difficult to find as the market’s price-to-earnings ratio marches ever higher.


    The S&P 500 currently has a price-to-earnings ratio of 25.1 and a dividend yield of 2.1%. Historical averages for these numbers are 15.6 and 4.4%, respectively (yields are down not only due to valuation but also because of the increased prevalence of share repurchases).

      


  • Tupperware Brands Corp (TUP) Chairman and CEO E V Goings Sold $9.4 million of Stocks


  • Are Equities Cheap Or Expensive Compared To Bonds? It's Difficult To Tell


    “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” -- Warren Buffett (Trades, Portfolio)
      


  • Peter Lynch's Bargains

    According to GuruFocus' All-in-One Screener, several gurus are focusing on stocks whose Peter Lynch fair value is far above the current price. The following stocks are trading with wide margins of safety and at least five gurus are shareholders.


    AerCap Holdings NV (AER) is trading at about $36 per share, the Peter Lynch value gives the stock a fair price of $81.2, giving investors a margin of safety of 56%.

      


  • T. Rowe Price Buys Apple, Pepsi, Western Digital

    John Linehan has been the portfolio manager of T. Rowe Price Equity Income Fund (PRFDX) since November of 2015, taking the reins from Brian Rogers, who managed the Fund since its inception in 1985. The following are the most heavily weighted buys of the second quarter of 2016.


    The fund raised its stake in Total SA ADR. (TOT) by 91.74%, with an impact of 0.68% on the portfolio.

      


  • Mario Gabelli Comments on Xylem Inc.

    Xylem Inc. (NYSE:XYL) (1.2%) (XYL – $44.65 – NYSE) is a global leader in the design, manufacturing, and application of highly engineered technologies for the transportation, treatment, and testing of water. The company is expected to benefit from favorable long term fundamentals in the water industry, driven by scarcity, population growth, aging of the infrastructure, and the need to improve water quality. Further, with a large installed base of pumps and systems, the company is well positioned to increase aftermarket revenue, which currently represents roughly 40% of total revenues. Xylem’s attractive business mix also generates strong cash flow, which is expected to support acquisitions across geographies and end markets and increase returns to shareholders. XYL is expected to generate 8%-12% earnings per share growth through 2020 as it accelerates its capital deployment strategy globally.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Waste Management Inc.

    Waste Management Inc. (NYSE:WM) (1.0%) (WM – $66.27 – NYSE) is the largest non-hazardous waste collection and disposal company in the United States. The company collects waste for commercial, industrial, municipal, and residential customers throughout the United States, and operates 249 landfills, 297 transfer stations, 104 recycling facilities, and 122 landfill gas-to-energy facilities. WM has focused on improving profitability by increasing return on capital and cash flow at each of its operations, through cost cutting and price increases. In addition, the company is looking for new environmentally friendly ways to increase returns from garbage, such as landfill gas. The company has a history of returning its strong cash flow to shareholders, both through dividends and its large share repurchase program.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Twenty-First Century Fox Inc.

    Twenty-First Century Fox Inc. (NASDAQ:FOXA) (2.1%) (FOXA – $27.05 – NASDAQ), (0.1%) (FOX – $27.25 – NASDAQ) is a diversified media company with operations in cable network television, television broadcasting, filmed entertainment, and direct broadcast satellite television. Cable networks account for 70% of the company’s EBITDA, and benefit from contractually recurring affiliate fees and exposure to the fast growing global pay television market. We also expect the company to benefit from rising demand for premium content, driven by emerging distribution platforms such as Netflix, retransmission revenue, and aggressive share repurchases.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Sony Corp

    Sony Corp. (NYSE:SNE) (1.0%) (SNE – $29.35 – NYSE) is a diversified electronics and entertainment company based in Tokyo, Japan. The company manufactures televisions, PlayStation game consoles, mobile phone handsets, and cameras. It also operates the Columbia film studio and Sony Music entertainment group. We expect the new PlayStation launch and operational improvements in consumer electronics and entertainment to generate EBITDA growth through 2017. We also think the spinoff of the entertainment assets could be a catalyst.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Ryman Hospitality Properties Inc.

    Ryman Hospitality Properties Inc. (NYSE:RHP) (0.2%) (RHP – $50.65 – NYSE) is a Nashville, Tennessee based REIT that owns convention hotels in Nashville, Tennessee; Orlando, Florida; Dallas, Texas; and Washington, D.C. Other assets include the iconic Opryland, the famous Ryman Auditorium, the General Jackson Showboat, and Nashville based radio station WSM-AM. With property manager Marriot’s operational issues resolved, the team is focused on taking advantage of strong convention bookings trends, seeking to drive margin expansion by increasing occupancy and room rates. Finally, as the leading country music entertainment brand, the potential monetization and spin-off of the Entertainment assets, including the Grand Ole Opry, also remains a significant catalyst for RHP shares.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Rollins Inc.

    Rollins Inc. (NYSE:ROL)(1.0%) (ROL – $29.27 – NYSE) provides pest control services to nearly two million residential and commercial customers throughout North America primarily under the Orkin and Western Pest brand names. Its services are critical to homeowners and commercial establishments alike, in both expansionary and recessionary times. The company has benefited from growth in the commercial service area and mosquito and bed bug treatments. At the same time, the company has controlled costs through more efficient scheduling and routing. Rollins has been taking advantage of its strong balance sheet to make tuck-in acquisitions. It has also begun franchising more operations outside the U.S. Founded in 1901, Rollins is majority owned by members of the Rollins family.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on McKesson Corp

    McKesson Corp. (NYSE:MCK) (0.1%) (MCK – $186.65 – NYSE) is one of the three largest drug wholesalers in the world and has been expanding aggressively outside the U.S. through the acquisition of Celesio and several other European companies. McKesson recently announced an innovative divestiture of its information technology businesses; it will merge it with privately owned Change Healthcare and the combined company will go public next year. In its core wholesaling business, the company has stabilized its performance after several contract losses, recently signing a large new contract with Walmart. McKesson retains a balanced capital return policy that invests first in its core business but then returns a significant amount of cash to shareholders via dividends and share repurchases, which has helped the company post superior long term growth and returns.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Madison Square Garden Co.

    Madison Square Garden Co. (NYSE:MSG)(0.9%) (MSG – $$172.51 – NYSE) is an integrated sports and entertainment company that owns the New York Knicks, the New York Rangers, the Radio City Christmas Spectacular, The Forum, and that iconic New York venue, Madison Square Garden. These evergreen content and venue assets benefit from sustainable barriers to entry and long term secular growth. MSG completed the separation of its associated regional sports networks in September 2015, leaving a reliable cash flow stream for MSG to reinvest and repurchase shares.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Flowserve Corp

    Flowserve Corp. (NYSE:FLS)(1.0%) (FLS – $45.17 – NYSE) is one of the largest global pump companies, serving the petroleum, chemical, and power industries. The company’s products include engineered and industrial pumps, automated and control valves, actuators, and seals. About 40% of FLS revenues are derived from the oil and gas industry, and should benefit from the refurbishment of the aging refineries in developed countries and the first time build out of the infrastructure in developing nations around the world. Further, oil companies are bringing up dirtier, heavier, and harder to access crude from thousands of feet below ground, as the cleaner, lighter, and easier to obtain crude that is closer to the surface is depleted. This demands more highly engineered pumps, valves, and seals that can work under very high pressure, high temperature, or underwater, boding well for FLS products.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Edgewell Personal Care Co.

    Edgewell Personal Care Co. (NYSE:EPC)(1.4%) (EPC – $84.41 – NYSE) based in St. Louis, Missouri, is the personal care division of Energizer Holdings, which split its personal care and household products divisions on July 1, 2015. Edgewell generates approximately $2.3 billion of revenue through its principal businesses: wet shaving, including Schick-branded razors and blades, Edge and Skintimate shaving preparation and private label shaving products; sun care, including the Banana Boat and Hawaiian Tropic brands; feminine care, including Playtex and o.b. tampons and Carefree and Stayfree liners and pads; and infant care, utilizing the Playtex and Diaper Genie brands. As a pure-play personal care company, Edgewell competes in high-margin, attractive categories with leading brands. We expect management to focus on improving margins through product mix, restructuring savings and operating leverage, which should afford it flexibility to reinvest in growth opportunities. The company has approximately $1.2 billion of net debt providing management with sufficient flexibility to invest in internal growth, make acquisitions and/or repurchase shares. EPC is a likely acquisition target as a multinational competitor with a strong international infrastructure would benefit from scale, cost synergies, and the opportunity to accelerate international expansion.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Brown-Forman Corp

    Brown-Forman Corp. (NYSE:BF.A)(2.4%) (BF/A – $108.03 – NYSE; BF/B – $99.76 – NYSE) is a leading global distilled spirits producer. Spirits is an advantaged category that enjoys high margins, low capital requirements, strong free cash flow generation and good pricing power. The company’s global brands include Jack Daniel’s Tennessee whiskey, Finlandia vodka, Woodford Reserve bourbon, and el Jimador and Herradura tequilas. Jack Daniel’s is one of the world’s most valuable spirits brands, enjoying strong growth both in the U.S. and internationally as consumers increasingly choose to drink American whiskies. The company has also successfully expanded the brand into the fast growing flavored whiskey category. While Brown-Forman does face some near term headwinds from negative foreign currency exposure (over half of sales come from outside the U.S.), the company is positioned to grow revenues and profits substantially over the next several years, and has significant balance sheet flexibility. While the company is family controlled, we believe that if it ever became available for sale it would be highly coveted by other large global spirits players.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli Comments on Bank of New York Mellon Corp

    Bank of New York Mellon Corp. (NYSE:BK)(1.0% of net assets as of June 30, 2016) (BK – $38.85 – NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of March 31, 2016, the firm had $29.1 trillion in assets under custody and $1.6 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

    From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund second quarter 2016 commentary.   


  • Mario Gabelli's Gabelli Asset Fund Shareholder Commentary – June 30

    To Our Shareholders,

      


  • Jerome Dodson Comments on Mondelez

    Mondelez (NASDAQ:MDLZ), a leading snack company with iconic brands such as Oreo, Trident and Cadbury, contributed 32 basis points to the Fund’s return, as its stock rose 13.4% from $40.12 to $45.51. The stock spiked at the end of the quarter after the company made a $23 billion bid for Hershey in an effort to create the world’s largest candy maker. Although Hershey swiftly rejected the offer, Mondelez’s stock still rallied, because Mondelez itself is an acquisition target. Many investors believe Mondelez approached Hershey in order to fend off an acquirer. While we don’t know how economy. U.S. investors are worried that slowing European growth will reduce export demand for American companies. Additionally, the decline in value of the British pound and euro make a bad situation worse, because revenue earned in these currencies is now worth less when converted into U.S. dollars. If this story about concerns over a foreign economy sounds familiar, that’s because it is. The S&P 500 has endured two 10% corrections over the past year due to China’s slowing economy and falling currency. China and the European Union together represent one-third of the global economy, so there are good reasons to be concerned.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Applied Materials

    Semiconductor-equipment manufacturer Applied Materials (NASDAQ:AMAT) added 37 basis points to the Fund, as its stock increased 13.2% from $21.18 to $23.97. Building on last quarter’s solid performance, the company continues to execute well, reaching an all-time high in order volume in China. The sustained outperformance and positive financial outlook has provided investors with increased confidence in the long-term trajectory of the business.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Micron Technology

    Our biggest winner was Micron Technology (NASDAQ:MU), which boosted the Fund’s return by 101 basis points, as its stock rose 31.4% from $10.47 to $13.76. Micron makes semiconductor memory chips, and its stock jumped as prices for dynamic random access memory (also known as DRAM) increased in June for the first time in two years. Just last quarter, Micron was our biggest loser, as DRAM prices continued their fall and investors fretted that there was no end in sight. Since production capacity is growing at a slower rate than demand, we were confident DRAM prices would eventually stabilize, but we didn’t know precisely when. While we were early with our initial investment, we added to our position on the weakness, and we’re happy our conviction is beginning to pay off. We expect demand growth to continue as computing becomes even more integral to the global economy, which should push Micron’s earnings, and its stock, higher.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Gilead

    Gilead (NASDAQ:GILD), a biotechnology firm that makes therapies for HIV and hepatitis C, sliced 21 basis points off the Fund’s return, as its stock declined 9.2% from $91.86 to $83.42. The company’s underperformance was driven by weakness in its hepatitis C business, as pricing came under pressure due to increased competition. Given Gilead’s proven track record of innovation and its strong balance sheet, we believe the company has many opportunities, not only to maintain leadership in HIV and hepatitis C, but also to expand its portfolio into new therapeutic areas.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Charles Schwab

    Charles Schwab (NYSE:SCHW), the San Francisco–based bank and brokerage firm, saw its stock drop 9.7% from $28.02 to $25.31, for a loss of 30 basis points. The stock slid because investors pushed back their expectations for a rise in interest rates. At the beginning of the quarter, the market assigned a less than 50% probability that the Fed Funds rate would remain unchanged in the 0.25%-0.50% range by the end of 2016. In late June (on the heels of the Brexit news), this probability shot up to almost 90%. This matters for Schwab, because low rates crimp the company’s ability to profit from its bank assets and money market funds. We’re holding our Schwab position, despite this expected delay in an interest rate hike, because we think the company’s long-term prospects are terrific.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Air Lease

    As its name implies, Air Lease (NYSE:AL) purchases aircraft and leases them to airlines. Its stock fell 16.6% from $32.12 to $26.78, trimming 33 basis points from the Fund’s return. The company reported better-than-expected earnings and held an upbeat investor day where Air Lease highlighted its expectation to double its aircraft fleet over the next five years. Nonetheless, the stock dropped due to concerns that slowing global growth could negatively impact air traffic. Despite this concern, we believe long-term air travel demand will remain robust, and airlines will continue to utilize the financial flexibility offered by leasing.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Allergan

    Allergan (NYSE:AGN), an innovative pharmaceutical company best known for developing Botox, reduced the return by 41 basis points as the stock dropped 13.8% from $268.03 to $231.09. The shares sank after Pfizer terminated its plans to acquire Allergan for $160 billion. Pfizer walked away from the deal because of new rules from the U.S. Treasury that prevent tax-lowering corporate inversions. We used the stock’s weakness to increase our position, since Allergan has an attractive collection of durable brands. We also like the fact that the company is in the process of selling its generic drug unit to Teva for $40 billion, which will enable Allergan to repurchase stock, pay down debt and acquire innovative drug companies.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Motorola Solutions

    Motorola Solutions (NYSE:MSI), a provider of communications services and networks for public safety workers, sliced 46 basis points from the Fund’s return, as its stock fell 12.9% from $75.70 to $65.97. Just last quarter, Motorola was one of our biggest winners, as investors cheered the acquisition of Airwave, Great Britain’s public safety communications network. Those cheers, however, turned to boos when the British voted to leave the EU. Investor sentiment soured even further on the deal, as regulators initiated a review to ensure that it won’t suppress competition. Our positive opinion of Airwave hasn’t changed, as we believe it will be significantly accretive to earnings while strengthening Motorola’s international presence. The deal was cleared by regulators after the quarter ended, and we think Britain may actually need to increase its spending on public safety as it prepares to leave the European Union.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson Comments on Perrigo

    Four companies each contributed 20 basis points or more to the Fund’s return this quarter, but six subtracted 20 basis points or more from the return. Our worst performer was Perrigo (NYSE:PRGO), the leading producer of store-brand generic drugs, as its stock sank 29.1% from $127.93 to $90.67, cutting 69 basis points from the Fund’s return. Shares plummeted in April after longtime CEO Joe Papa resigned to become the CEO at Valeant Pharmaceuticals, and Perrigo lowered its 2016 guidance for the second time this year. The business has underperformed due to declining generic drug prices and weak growth from Omega, Perrigo’s European business. While we think John Hendrickson, Perrigo’s new CEO, is the right person for the job given his strong operational background, we’re continuing to monitor the drug pricing environment.


    From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund second quarter 2016 commentary.   


  • Jerome Dodson's Parnassus Fund 2nd Quarter Commentary

    As of June 30, 2016, the net asset value (“NAV”) of the Parnassus Fund – Investor Shares was $39.80, resulting in a loss of 0.50% for the second quarter. This compares to a gain of 2.45% for the S&P 500 Index (“S&P 500”) and a gain of 1.14% for the Lipper Multi-Cap Core Average, which represents the average return of the multi-cap core funds followed by Lipper (“Lipper average”), so we trailed both benchmarks for the quarter. For the year-to-date, the Fund is down 1.63%, compared to a gain of 3.82% for the S&P 500 and 1.67% for the Lipper average. These returns are disappointing. In our view, however, these losses are temporary, and investors with a long-term approach should not lose capital. We’re picking stocks the same way we always have, so we believe it’s just a matter of time until the market recognizes the value of the stocks in our portfolio. When this happens, we expect our performance to recover.

      


  • Risk Reward With Facebook

    Facebook (NASDAQ:FB) is the largest social network in the world, by far, connecting more than 1.6 billion active users per month. It is also a return on investment goldmine for advertisers wanting to target customers based on a wide variety of data points. It’s the only social network that is actually profitable and has a very strong competitive advantage with its core platform and added apps, like Instagram and WhatsApp.


    The stock is on a tear since bottoming out in 2012. It’s up over 400% in the last 4 years, and all signs point to continued growth. Yet, with a market capitalization of approximately $350 billion, it’s hard to imagine that a 100% gain is possible in the near future, despite the growth in user engagement, which is the main catalyst for their durability. No one is going to be able to build a better social network, but the industry is still fairly new in the mind of the consumer and Facebook has had to change its algorithm to be more user-driven. This has made advertising more of a necessity for businesses and brands to get content shown to its user base.

      


  • McDonald's Stock Is Down After Weak Earnings Report

    McDonald’s (NYSE:MCD) reported its second quarter results on Tuesday, July 26. The fast food company reported revenue that was on target with the street’s expectations, however, earnings  missed estimates. Revenue for the quarter was $6.27 billion, which was down 3.5% from the comparable quarter. Earnings per share for the quarter were $1.25, which missed estimates by $0.13. Earnings per share for the quarter decreased 1% from the comparable quarter. In morning trading following the company’s earnings report, the stock is down 4%.


    In the second quarter, sales from company operated restaurants accounted for 63% of sales, while franchised restaurant revenue accounted for 37% of revenue. Company operated restaurant revenue was down 8%, while franchised restaurant revenue was down 5%.

      


  • Verizon Reports Earnings, Completes Yahoo Deal

    Verizon (NYSE:VZ) reported its second quarter earnings before the bell on Tuesday, July 26. The company’s earnings report missed revenue estimates, however, earnings were higher than expected. For the quarter, revenue was $30.53 billion, missing estimates by $420 million. Revenue for the quarter was down -5.2% from the comparable quarter. Earnings per share for the quarter were $0.94, beating estimates by $0.02. For the quarter, earnings per share were 10% lower than the comparable quarter.


    Verizon’s two main business segments were down in the second quarter. Wireless revenue was down 4% from the comparable quarter. Operating income in wireless increased 4% from the comparable quarter to $8.0 billion. Wireline revenue was down 2% from the comparable quarter. Operating income in wireline was also lower, down $264 million from the comparable quarter.

      


  • 9 Best Stocks for Value Investors This Week

    I evaluated 34 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. We also put each company through the ModernGraham valuation model based on Benjamin Graham's value investing formulas in order to determine an intrinsic value for each. Out of those 34 companies, only nine were found to be undervalued or fairly valued and suitable for either Defensive or Enterprising Investors.


      


  • The Stockdale Paradox

    One of the books that has captured my attention during these past days is "Good to Great: Why Some Companies Make The Leap And Others Don't" by Jim Collins.


    The book is enjoyable and well-written but most importantly has several ideas that have made me re-think certain concepts. While I certainly recommend the entire book, one of the most relevant concepts that I have encountered is what the author calls the Stockdale Paradox. This concept applies not only to companies but also to us as individual investors looking to improve our performances.

      


  • T. Rowe Price Japan Fund’s Top 5 Buys

    T. Rowe Price Japan Fund (Trades, Portfolio) purchased two new holdings and added to three others during the second quarter. Its new purchases were Daio Paper Corp. (TSE:3880) and ASICS Corp. (TSE:7936).


    In Daio Paper, 741,900 shares were purchased for an average price of 1,083.65 yen ($10) per share. The paper manufacturer has a market cap of 172.7 billion yen with an enterprise value of 457.4 billion yen. It has a P/E of 12.6, a P/B of 1.1 and a P/S of 0.36. GuruFocus ranked its financial strength 5 of 10 and its profitability and growth 5 of 10. The transaction had a 2.19% impact on the Fund’s portfolio.

      


  • How the Fed Affects Risk Premia

    “The Fed is manipulating markets.”


    “Central Banks are destroying capitalism.”

      


  • Want to Shop at Macy’s?

    A recent Forbes article titled "Seven Signs Of Life At Macy's" highlighted that the company may be set for a turnaround. Here are the seven signs the article identified:




  • Key Metrics: Price to Sales

    Today I want to take an in-depth look at what James O'Shaughnessy, author of "What Works on Wall Street," found to be the best historical value metric, the price to sales ratio. I'll discuss how to calculate it, what it tells us and how you can incorporate the metric in your investing approach.


    What is price to sales?

      


  • Companies Hit 52-Week Highs

    According to GuruFocus' list of 52-week highs, these stocks have reached their 52-week highs.


    Applied Materials reached the 52-week high of $26.37

      


  • Netflix: High Pricing Isn’t the Only Concern

    Netflix (NASDAQ:NFLX) lost around 15% of its market cap when it missed the net addition expectations during the second quarter.


    A price increase was the most frequently cited reason for the missed expectations. However, that isn’t the only problem Netflix has. On the surface, it looks like a pricing problem, but the company is facing several other challenges including a tricky business model, poor expansion strategy and strong competition.

      


  • Netflix Inc (NFLX) CEO Reed Hastings Sold $10.1 million of Stocks


  • Yum Brands Inc (YUM) CEO China Muktesh Pant Sold $8.2 million of Stocks


  • Notes on Credit Acceptance Corp

    I recently made a list of a few shareholder letters I want to read, and one that I completed a few days ago was Credit Acceptance Corp (NASDAQ:CACC). This post is not a comprehensive review of the business, as I just started reading about the company. But I thought some readers might be interested in some initial notes.


    (I am thinking about putting more of these “scratch notes” up as posts. If this is interesting to readers, please let me know. Often times, I read about a company and don’t end up coming to a solid conclusion. I have many pages of notes on companies that I don’t ever discuss, simply because the information might not be actionable currently. But if these types of notes are worth reading, then I’ll begin putting up more of them.)

      


  • Arnold Van Den Berg Buys 6 New Stocks, Gets More Bullish on Oil Companies

    During the second quarter, founder of Austin-based Century Management Arnold Van Den Berg (Trades, Portfolio) cut back on his sizable positioning in gold miners while increasing holdings in health care and oil.


    Overall, Century Management bought six new stocks and sold 36. It had 47 stock investments in total at quarter-end, valued at $597 million. Basic materials stocks as a portion of the portfolio had decreased to 7.9% from 12.2% one year ago. Health care stock representation also grew to 6.5% from 1.9%.

      


  • 5 Rules to Buy Low and Sell High in the Stock Market

    Every investor claims to buy low and sell high in the stock market. No one can argue against this being a good approach. In reality, what most investors are doing is buying high and expecting to sell higher.


    This practice is dangerous because it increases the level of risk while simultaneously decreasing the probability of a high return. By definition, value investors actually do buy low and sell high.

      


  • GE: A Strong Dividend Growth Investment Through 2018

    It’s hard for a dividend investor to pass up an opportunity like General Electric (NYSE:GE). The company has the right ingredients in the right measure to make it attractive enough for any type of investor.


    The company itself is nothing short of a textbook conglomerate diverse business units flung out over the largest geography possible. Most companies would have either begun to spin off units or simply sell them off to manage their core business, but GE has managed to keep the flock together decade over decade.

      


  • Verizon Seeks to Improve AOL Business With Yahoo! Acquisition

    Verizon Communications Inc. (NYSE:VZ) announced a near $5 billion acquisition of Yahoo! Inc. (NASDAQ:YHOO) on July 25. With declining financials, the pioneer Internet company is likely to face bankruptcy in the short term. By acquiring Yahoo!, the management team at Verizon can produce synergies that benefit both companies in the short term.


    The acquisition deal and its background

      


  • Swedish Holding Company Investor AB Is a Textbook Value Stock

    Investor AB (IVSBY, IVSBF) is a Swedish holding company that has been in operation for over 100 years. The stock trades at a small discount to NAV and has grown NAV nicely over the last 20 years.


    The company has 767 million shares and trades at a market cap of SEK229 billion ($26.5 billion). It takes 8.64 krona to buy one dollar. The dividend is SEK7 and the dividend yield is 2.3%. The net asset value per shares as of the end of June was SEK339, thus trading at a 13.7% discount. NAV plus the dividend has grown at 9% over the last 20 years. The A shares offer one vote and B shares offer 1/10 of one vote.

      


  • FPA Capital Fund Sells Apollo Education, Helmerich & Payne

    FPA Capital Fund (Trades, Portfolio) has a concentrated portfolio and invests primarily in undervalued small-to-mid cap companies. During the first quarter, the firm sold shares in the following stocks:


    The fund reduced its stake in Apollo Education Group Inc. Class A. (APOL) by 32.18%, with an impact of -1.77% on the portfolio.

      


  • Chuck Royce's Largest 2nd-Quarter Trades

    Chuck Royce (Trades, Portfolio), portfolio manager for Royce Pennsylvania Mutual Fund since 1972, is one of the pioneers in small-cap investing and enjoys one of the longest tenures of any active mutual fund manager. During the second quarter he traded the following stocks:


    The guru reduced his stake in UniFirst Corp. (UNF) by 21.25% with an impact of -0.26% on the portfolio.

      


  • Yacktman Fund Invests in Samsung Electronics

    The Yacktman Fund (Trades, Portfolio) boosted its position in South Korean electronics company Samsung Electronics Co. Ltd. (XKRX:005935) by more than 50% with the purchase of 111,283 shares in the second quarter.

    The fund paid an average price of ₩1,086,610 ($955.02 in U.S. currency) per share in a deal that had a 1.63% impact on the fund’s portfolio.  


  • Matthews Japan Fund Comments on Relo Group

    Stock selection accounted for the majority of the Fund’s outperformance. During the second quarter, the financials sector was again the leading source of relative performance. Our strategy to focus on unique and growing financial services firms, while avoiding more traditional names in banking and real estate, has been a significant driver of outperformance for the Fund. Corporate welfare and real estate management company Relo Group (TSE:8876), credit guarantee company eGuarantee and M&A advisory firm Nihon M&A Center all contributed positively to Fund performance. Additionally, our core holdings in the internet sector such as health care information service company M3 and fashion e-commerce company Start Today continue to deliver impressive returns. However, we have turned a bit more cautious on these names as strong performance has resulted in elevated valuation levels.

    From Matthews Japan Fund (Trades, Portfolio) second quarter 2016 commentary.   


  • Matthews Japan Fund Comments on Nitori Holdings

    During the quarter, we tilted the portfolio further towards companies that are strong yen beneficiaries while not compromising on medium-term growth potential and franchise quality. Nitori Holdings (TSE:9843) is one such example. As the leading furniture retailer in Japan, Nitori has been consolidating market share in the country by expanding further into urban areas and delivering innovative products that have stimulated consumer demand. Nitori also plans to steadily increase its presence in China where, we believe, they have an advantage in terms of product offering, perception of quality and price in a very fragmented Chinese furniture retail industry. As a major importer, Nitori stands to benefit from a stronger yen over time.

    From Matthews Japan Fund (Trades, Portfolio) second quarter 2016 commentary.   


  • Matthews Japan Fund 2nd Quarter Commentary

    For the first half of 2016, the Matthews Japan Fund (Trades, Portfolio) returned 6.27% (Investor Class), while its benchmark, the MSCI Japan Index, returned -5.41%. For the quarter ending June 30, 2016, the Matthews Japan Fund (Trades, Portfolio) returned 6.05% (Investor Class), while its benchmark, the MSCI Japan Index, returned 1.03%.

    Market Environment:

      


  • First Eagle Investments Comments on Liberty Global

    Liberty Global (NASDAQ:LBTYA), which owns the dominant cable-TV network in Europe, declined along with other companies that have leverage in their capital structure. We have been comfortable with the level of leverage and we also believe the company has opportunities for long-term earnings, but we have concerns about short-term volatility in its generation of free cash flow.


    From First Eagle Global Value Fund second quarter 2016 commentary.

      


  • First Eagle Investments Comments on Microsoft

    Microsoft (NASDAQ:MSFT) also declined at the end of the quarter in reaction to the company’s acquisition of LinkedIn. The price Microsoft paid may have looked expensive on an enterprise value/EBITDA basis, but we think LinkedIn’s EBITDA margins could potentially move up meaningfully over time.


    From First Eagle Global Value Fund second quarter 2016 commentary.

      


  • First Eagle Global Value Team 2nd Quarter Commentary

    Market Overview

      


  • Ford, General Motors and the Myth of Peak Auto Sales

    Automakers around the world are going through a terrible time at the hands of investors. Market sentiment is so bearish on the industry that not even Toyota (NYSE:TM), the largest company by market capitalization, and Tesla (NASDAQ:TSLA), the best disruptor in the industry, are being spared.


    Of the top four companies  Toyota, Ford (NYSE:F), Honda (NYSE:HMC) and General Motors (NYSE:GM) – only Honda is trading with a double-digit PE ratio while the other three are well below 10, indicating the bearishness in the market. The stocks of all four companies are down this year with the exception of Ford, which shows a measly 2.66% increase thanks to the best quarterly results the company has ever posted.

      


  • The Battle of the Billionaire Gurus – and the Future of Herbalife

    Two of the great investing names of our times, Carl Icahn (Trades, Portfolio) of Icahn Capital Management LP and Bill Ackman (Trades, Portfolio) of Pershing Square Capital Management, L.P. are both friends and bitter rivals. That rivalry arises out of their diametrically opposed views about Herbalife, the nutritional supplements company. And more specifically, about the compensation of independent distributors who sell those products to consumers.


    Bill Ackman and Carl Icahn

      


  • Should You Expect More Upside From NVIDIA?

    NVIDIA’s (NVDA) valuation may be a bit stretched right now, but given the company’s prospects, I think the stock deserves to trade at a premium. NVIDIA has its presence in many high growth markets, and since I have covered most of those markets in my previous articles, I’ll be focusing on a new one in this article.


    Artificial Intelligence

      


  • Return Obsession

    How often do you hear about investing returns?


    Mutual funds, investment newsletters (mine included), hedge funds, and even individual investors compare their returns to each other and the market.

      


  • Akre Focus Fund Commentary 2nd Quarter 2016

    Akre Focus Fund Commentary


    Second Quarter 2016

      


  • Mario Gabelli Comments on Xylem Inc.

    Xylem Inc. (NYSE:XYL) (1.2%) (XYL – $44.65 – NYSE) is a global leader in the design, manufacturing, and application of highly engineered technologies for the transportation, treatment, and testing of water. The company is expected to benefit from favorable long term fundamentals in the water industry, driven by scarcity, population growth, aging of the infrastructure, and the need to improve water quality. Further, with a large installed base of pumps and systems, the company is well positioned to increase aftermarket revenue, which currently represents roughly 40% of total revenues. Xylem’s attractive business mix also generates strong cash flow, which is expected to support acquisitions across geographies and end markets and increase returns to shareholders. XYL is expected to generate 8%-12% earnings per share growth through 2020 as it accelerates its capital deployment strategy globally.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Waste Management Inc.

    Waste Management Inc. (NYSE:WM) (1.0%) (WM – $66.27 – NYSE) is the largest non-hazardous waste collection and disposal company in the United States. The company collects waste for commercial, industrial, municipal, and residential customers throughout the United States, and operates 249 landfills, 297 transfer stations, 104 recycling facilities, and 122 landfill gas-to-energy facilities. WM has focused on improving profitability by increasing return on capital and cash flow at each of its operations, through cost cutting and price increases. In addition, the company is looking for new environmentally friendly ways to increase returns from garbage, such as landfill gas. The company has a history of returning its strong cash flow to shareholders, both through dividends and its large share repurchase program.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Twenty-First Century Fox Inc.

    Twenty-First Century Fox Inc. (NASDAQ:FOXA) (2.1%) (FOXA – $27.05 – NASDAQ), (0.1%) (FOX – $27.25 – NASDAQ) is a diversified media company with operations in cable network television, television broadcasting, filmed entertainment, and direct broadcast satellite television. Cable networks account for 70% of the company’s EBITDA, and benefit from contractually recurring affiliate fees and exposure to the fast growing global pay television market. We also expect the company to benefit from rising demand for premium content, driven by emerging distribution platforms such as Netflix, retransmission revenue, and aggressive share repurchases.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Sony Corp

    Sony Corp. (NYSE:SNE) (1.0%) (SNE – $29.35 – NYSE) is a diversified electronics and entertainment company based in Tokyo, Japan. The company manufactures televisions, PlayStation game consoles, mobile phone handsets, and cameras. It also operates the Columbia film studio and Sony Music entertainment group. We expect the new PlayStation launch and operational improvements in consumer electronics and entertainment to generate EBITDA growth through 2017. We also think the spinoff of the entertainment assets could be a catalyst.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Ryman Hospitality Properties Inc.

    Ryman Hospitality Properties Inc. (NYSE:RHP) (0.2%) (RHP – $50.65 – NYSE) is a Nashville, Tennessee based REIT that owns convention hotels in Nashville, Tennessee; Orlando, Florida; Dallas, Texas; and Washington, D.C. Other assets include the iconic Opryland, the famous Ryman Auditorium, the General Jackson Showboat, and Nashville based radio station WSM-AM. With property manager Marriot’s operational issues resolved, the team is focused on taking advantage of strong convention bookings trends, seeking to drive margin expansion by increasing occupancy and room rates. Finally, as the leading country music entertainment brand, the potential monetization and spin-off of the Entertainment assets, including the Grand Ole Opry, also remains a significant catalyst for RHP shares.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Rollins Inc.

    Rollins Inc. (NYSE:ROL) (1.0%) (ROL – $29.27 – NYSE) provides pest control services to nearly two million residential and commercial customers throughout North America primarily under the Orkin and Western Pest brand names. Its services are critical to homeowners and commercial establishments alike, in both expansionary and recessionary times. The company has benefited from growth in the commercial service area and mosquito and bed bug treatments. At the same time, the company has controlled costs through more efficient scheduling and routing. Rollins has been taking advantage of its strong balance sheet to make tuck-in acquisitions. It has also begun franchising more operations outside the U.S. Founded in 1901, Rollins is majority owned by members of the Rollins family.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on McKesson Corp

    McKesson Corp. (NYSE:MCK) (0.1%) (MCK – $186.65 – NYSE) is one of the three largest drug wholesalers in the world and has been expanding aggressively outside the U.S. through the acquisition of Celesio and several other European companies. McKesson recently announced an innovative divestiture of its information technology businesses; it will merge it with privately owned Change Healthcare and the combined company will go public next year. In its core wholesaling business, the company has stabilized its performance after several contract losses, recently signing a large new contract with Walmart. McKesson retains a balanced capital return policy that invests first in its core business but then returns a significant amount of cash to shareholders via dividends and share repurchases, which has helped the company post superior long term growth and returns.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Madison Square Garden Co.

    Madison Square Garden Co. (NYSE:MSG) (0.9%) (MSG – $$172.51 – NYSE) is an integrated sports and entertainment company that owns the New York Knicks, the New York Rangers, the Radio City Christmas Spectacular, The Forum, and that iconic New York venue, Madison Square Garden. These evergreen content and venue assets benefit from sustainable barriers to entry and long term secular growth. MSG completed the separation of its associated regional sports networks in September 2015, leaving a reliable cash flow stream for MSG to reinvest and repurchase shares.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Flowserve Corp

    Flowserve Corp. (NYSE:FLS) (1.0%) (FLS – $45.17 – NYSE) is one of the largest global pump companies, serving the petroleum, chemical, and power industries. The company’s products include engineered and industrial pumps, automated and control valves, actuators, and seals. About 40% of FLS revenues are derived from the oil and gas industry, and should benefit from the refurbishment of the aging refineries in developed countries and the first time build out of the infrastructure in developing nations around the world. Further, oil companies are bringing up dirtier, heavier, and harder to access crude from thousands of feet below ground, as the cleaner, lighter, and easier to obtain crude that is closer to the surface is depleted. This demands more highly engineered pumps, valves, and seals that can work under very high pressure, high temperature, or underwater, boding well for FLS products.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Edgewell Personal Care Co.

    Edgewell Personal Care Co. (NYSE:EPC) (1.4%) (EPC – $84.41 – NYSE) based in St. Louis, Missouri, is the personal care division of Energizer Holdings, which split its personal care and household products divisions on July 1, 2015. Edgewell generates approximately $2.3 billion of revenue through its principal businesses: wet shaving, including Schick-branded razors and blades, Edge and Skintimate shaving preparation and private label shaving products; sun care, including the Banana Boat and Hawaiian Tropic brands; feminine care, including Playtex and o.b. tampons and Carefree and Stayfree liners and pads; and infant care, utilizing the Playtex and Diaper Genie brands. As a pure-play personal care company, Edgewell competes in high-margin, attractive categories with leading brands. We expect management to focus on improving margins through product mix, restructuring savings and operating leverage, which should afford it flexibility to reinvest in growth opportunities. The company has approximately $1.2 billion of net debt providing management with sufficient flexibility to invest in internal growth, make acquisitions and/or repurchase shares. EPC is a likely acquisition target as a multinational competitor with a strong international infrastructure would benefit from scale, cost synergies, and the opportunity to accelerate international expansion.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Brown-Forman Corp

    Brown-Forman Corp. (NYSE:BF.A)(2.4%) (BF/A – $108.03 – NYSE; BF/B – $99.76 – NYSE) is a leading global distilled spirits producer. Spirits is an advantaged category that enjoys high margins, low capital requirements, strong free cash flow generation and good pricing power. The company’s global brands include Jack Daniel’s Tennessee whiskey, Finlandia vodka, Woodford Reserve bourbon, and el Jimador and Herradura tequilas. Jack Daniel’s is one of the world’s most valuable spirits brands, enjoying strong growth both in the U.S. and internationally as consumers increasingly choose to drink American whiskies. The company has also successfully expanded the brand into the fast growing flavored whiskey category. While Brown-Forman does face some near term headwinds from negative foreign currency exposure (over half of sales come from outside the U.S.), the company is positioned to grow revenues and profits substantially over the next several years, and has significant balance sheet flexibility. While the company is family controlled, we believe that if it ever became available for sale it would be highly coveted by other large global spirits players.


    From the Gabelli ABC Merger Arbitrage Fund second quarter 2016 shareholder letter.

      


  • Mario Gabelli Comments on Bank of New York Mellon Corp

    Bank of New York Mellon Corp. (NYSE:BK) (1.0% of net assets as of June 30, 2016) (BK – $38.85 – NYSE) is a global leader in providing financial services to institutions and individuals. The company operates in more than one hundred markets worldwide and strives to be the global provider of choice for investment management and investment services. As of March 31, 2016, the firm had $29.1 trillion in assets under custody and $1.6 trillion in assets under management. Going forward, we expect BK to benefit from rising global incomes and the cross border movement of financial transactions. BK is also well positioned to grow earnings in a rising interest rate environment, given its large customer cash deposits and significant loan book.

      


  • The Gabelli ABC Fund Merger and Arbitrage – 'The Deal Fund' 2nd Quarter Shareholder Commentary

    To Our Shareholders,

      


  • Baron Funds Comments on Teleflex Inc.

    We initiated a position in Teleflex, Inc. (NYSE:TFX), a medical device company that over the past five years has been transformed, under CEO Benson Smith’s leadership, from a diversified industrial company into a pure-play medical device company through a series of divestitures and acquisitions. Today, the company sells products used by hospitals and health care providers for critical care applications and surgical procedures. The company’s products include, among others, catheters that provide vascular access for delivery of intravenous medications, laryngeal masks for delivery of anesthesia, and surgical instruments used for minimally invasive surgery. The company’s products are used in procedures for treatment of acute or life-threatening illnesses and are therefore less susceptible to being cut during an economic downturn.


    We think the company has a solid base business that should be able to grow in the mid-single digits on an organic basis driven by volume growth, new product introductions, and to a lesser extent pricing. In addition, we think the company has the potential to accelerate its organic growth through several interesting new product opportunities, including, among others, the Percuvance Surgical System, a surgical instrument for use in minimally invasive procedures. Percuvance requires a smaller incision site than traditional laparoscopic surgery, while maintaining the equivalent rigidity and strength of laparoscopic instruments. Percuvance has the potential to reduce patient trauma and minimize scarring. The company plans to pursue a full market release of the product in the third quarter of 2016. We think the product has widespread application and well over $100 million of revenue potential over the long term.

      


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