John Rogers

Last Update: 03-10-2017

Number of Stocks: 191
Number of New Stocks: 14

Total Value: $8,471 Mil
Q/Q Turnover: 5%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

John Rogers Watch

  • Ariel Funds: Bank Stocks Are Overvalued

    Vice Chairman of John Rogers (Trades, Portfolio)' Ariel Investments, Charles Bobrinskoy, commented on the pullback in the market this week, saying bank stocks were very cheap in June, got to fair value the day after election, ran to overvalued and now are coming back to earth. He also believes regional bank stocks are too expensive.

    Financials compose 28% of Ariel's portfolio as their largest represented sector. Their largest positions in bank stocks are: Banco Santander Chile (NYSE:BSAC), BOK Financial (NASDAQ:BOKF) and US Bancorp (NYSE:USB).   


  • Executive Chairman Slashes Stake in Gilead Sciences

    Insider John Martin, the executive chairman of Gilead Sciences (NASDAQ:GILD), sold 73,333 shares on March 3 for $70.38 per share according to a Form 4 filing with the securities and exchange commission


    Gilead Sciences has a market cap of $88.72 billion, a price-earnings (P/E) ratio of 6.83, an enterprise value of $103.65 billion and a price-book (P/B) ratio of 4.71.

      


  • John Rogers' Ariel Fund February Commentary

    Warren Buffett (Trades, Portfolio) often says, “Be greedy when others are fearful; be fearful when others are greedy.” While we do not think it is time for fear, it is certainly reasonable to be skeptical. We are not counseling pessimism but rather an intellectual caution leaning against groupthink and wide-eyed optimism—since there are some signs of market euphoria.  


  • Brink's Insider Reduces Position in Company

    Peter Feld, a director of The Brink’s Co. (NYSE:BCO), sold 900,000 shares in 40 transactions between March 3 and March 7, according to SEC filings. They were sold for an average price of $52.39 per share.


    Feld now owns 3,028,940 shares of the company following the sale.

      


  • Insiders Invest in Edgewater Technology

    Edgewater Technology Inc. (NASDAQ:EDGW) directors purchased a combined 85,000 shares on March 3.


    According to SEC filings, Kurt Wolf purchased 20,000 shares of the company for $6.83 per share, Stephen Bova purchased 15,000 shares for $6.62 per share and Frederick DiSanto bought 50,000 shares for $6.59 per share.

      


  • Costco Reports Good Sales Growth for Fiscal 2nd Quarter

    During the company’s fiscal second-quarter 2017, Costco Wholesale Corp. (NASDAQ:COST) reported net sales of $29.13 billion, net income of $515 million and diluted earnings per share of $1.17. These results outperformed results from the prior year, suggesting the company has good growth potential for fiscal 2017.


    Brief summary of earnings report

      


  • Whitney Tilson and the Saga of Lumber Liquidators

    Whitney Tilson (Trades, Portfolio), one of the high-profile investors followed by GuruFocus, has dramatically reversed his opinion about Lumber Liquidators Holdings Inc. (NYSE:LL).


    Tilson famously shorted Lumber Liquidators twice in the past five years but now thinks it may have potential as a long name. He hasn’t said a lot on the subject, but this slide from Robin Hood Investors Conference on Nov. 29, 2016 shows his history with the stock and makes it clear where he stood at the time of the conference.

      


  • 8 Stocks With Strong Yields but Falling Prices

    According to the GuruFocus All-in-One Screener, the following stocks have high dividend yields but performed poorly over the past 12 months.


    Blackrock Virginia Municipal Bond Trust’s (BHV) dividend yield is 4.82% with a payout ratio of 0.55%. Over the past 52 weeks the price declined 14.2%, and the stock is now trading with a price-earnings (P/E) ratio of 10.9 and a price-sales (P/S) ratio of 14.9.

      


  • John Rogers' Ariel Fund January Commentary

    In January, our monthly commentary typically focuses on the prior year’s asset flows, since they often a reveal a lot about investor sentiment. As we have noted before, asset flows have followed a different pattern in the wake of the great financial crisis. Specifically, bonds tended to receive inflows, domestic equity saw outflows, and passive management began dominating active management—mainly but not only in equities. More subtly, a long-standing preference for funds with strong short-term performance became even more pronounced.

      


  • 8 High-Yield Stocks With a Negative 1-Year Performance

    According to the GuruFocus All-in-One Screener, the following stocks have high dividend yields but performed poorly over the past 12 months.


    United-Guardian Inc.’s (NASDAQ:UG) dividend yield is 4.96% with a payout ratio of 1.73%. Over the past 52 weeks however, the price declined 23.1%, and the stock is now trading with a price-earnings (P/E) ratio of 30.90 and a price-sales (P/S) ratio of 7.2.

      


  • John Rogers Comments on JLL

    Also, real estate company JLL (NYSE:JLL) declined –10.89% on disappointing earnings. In early November the company reported quarterly earnings of $1.42, significantly below consensus of $2.00. Revenues were strong, but the impact of an acquisition, higher technology spending, a decline in incentive fees, and a significant write-down of receivables all hurt the bottom line. We think the quarter featured a rare confluence of one-time factors. To our minds, the long-term value of one of the top two global real estate players remains stable.


    From John Rogers (Trades, Portfolio)' Ariel Fund fourth quarter 2016 commentary.

      


  • John Rogers Comments on Charles River Laboratories Intl

    Other holdings underperformed. Scientific research firm Charles River Laboratories Intl, Inc. (NYSE:CRL) slid –8.58% due to contracting customer spending and a general downturn in health care stocks. Like other similar firms, Charles River expanded over the last 15 years to be able to handle peak medical research, but as drug companies scaled back, there was clearly overcapacity. The company’s drug discovery business is still a bit slack. That said, many health care stocks slid this quarter during a huge rotation to financials. We think the current issues are largely cyclical but the secular push toward solving medical problems through pharmaceuticals remains intact—a long-term tailwind for Charles River.


    From John Rogers (Trades, Portfolio)' Ariel Fund fourth quarter 2016 commentary.

      


  • John Rogers Comments on Keysight Technologies

    In the last quarter of the year, we added one new position in Ariel Appreciation Fund We purchased Keysight Technologies, Inc. (NYSE:KEYS), a leading test and measurement business for electronics. The company’s long history dates back to its formation as the measurement business of Hewlett-Packard (NYSE:HPE), which has resulted in deeply rooted relationships, leading market share, and a seat at the table during the development of new technologies. Recently spun-off from Agilent Technologies, Inc. (NYSE:A), investors are discarding the shares due to a perceived lack of near-term growth prospects. We see this as an attractive long-term opportunity to own a niche market leader with excellent free cash flow generation. We think it is well-positioned to benefit from several longer-term tailwinds, including 5G wireless testing and growing demand for modular solutions, software-based testing and recurring services.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund fourth quarter 2016 commentary.  


  • John Rogers Comments on Thermo Fisher Scientific Inc.

    Also, scientific research supplier Thermo Fisher Scientific Inc. (NYSE:TMO) dropped –11.20% despite an earnings beat. The company reported earnings per share of $2.03 in late October, well ahead of the $1.97 consensus estimate; it also closed its acquisition of electron microscope maker FEI Company. Health care stocks were generally weak in November and December as investors rotated away from defensive stocks toward more aggressive ones. In our view, the company remains on the right track.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund fourth quarter 2016 commentary.  


  • John Rogers Comments on Zimmer Biomet Holdings

    Other holdings underperformed. Orthopedic specialist Zimmer Biomet Holdings, Inc. (NYSE:ZBH) fell –20.44% after cutting guidance and admitting internal supply issues. Earnings were in-line, but revenue was negatively impacted by inventory for some high-end products. The company subsequently cut full-year earnings guidance from $8.00 per share to $ 7.95 per share. We view the supply problem as a short-term issue and believe the long-term future is bright for this best-in-class brand.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund fourth quarter 2016 commentary.  


  • John Rogers Comments on Northern Trust Corp

    In addition, wealth management firm Northern Trust Corp. (NASDAQ:NTRS) surged +31.58% on broad news that boosted many financial companies. Donald Trump’s unexpected win is good news for banks, asset managers, and investment banks. And, as anticipated, in mid-December the Federal Reserve raised its federal funds target rate 25 basis points to the 0.50% to 0.75% range, which helps boost bank profits on deposits. The Northern Trust is performing well, but its recent rise was due to external events.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund fourth quarter 2016 commentary.  


  • John Rogers Comments on Bristow Group Inc.

    Some holdings in the portfolio advanced considerably. Helicopter transportation company Bristow Group Inc. (NYSE:BRS) ascended +46.83% after recently secured financing put Wall Street at ease. The Street had worried the company would become financially distressed like a top competitor given the oil industry’s woes. Instead, Bristow arranged $300 million in debt, secured by a portion of its own helicopter fleet. In addition, oil rose during the year and the quarter, giving the stock a mild boost as well. We think its shares are undervalued given the company’s significant assets and depressed earnings.

    From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund fourth quarter 2016 commentary.  


  • John Rogers' Ariel Fund 4th Quarter Commentary

    Entering the fourth quarter of 2016, it appeared domestic stocks would have a solid year and international equities a lackluster, yet positive one. After a divergent quarter, we had a great year in the U.S. and a flat year abroad. For 2016, the large-cap S&P 500 Index gained +11.96%, the small-cap Russell 2000 Index leapt +21.31%, while the developed-market MSCI EAFE Index eked out a +1.00% gain. As many know, the big surge after the surprising U.S. Presidential Election became known as the “Trump Bump.” The disparity between large-caps’ single digit fourth quarter gains and small-caps’ big run stems from the President-Elect’s plan to slash corporate taxes. Perhaps more importantly, however, the gains suggest optimism the economic expansion will continue. Globally, pessimism has held sway for some time. Since a July 3, 2014 peak, the MSCI EAFE Index is down -9.23% cumulatively through December 31, 2016. This index is clearly in a bear market: down for two and a half years and at one point off -22.15% cumulatively. This quarter, Ariel Fund gained +7.75%, behind the Russell 2500 Value Index’s +9.34% gain but ahead of the +6.12% rise of the Russell 2500 Index.

      


  • John Rogers' Ariel Appreciation Fund 4th Quarter Commentary

    Quarter Ended December 31, 2016

      


  • John Rogers Muses on Risk in Ariel Funds December Commentary

    Happy New Year to you and Happy Birthday to our global portfolios! Two years ago we celebrated their three-year records and first set of Morningstar Ratings, so it makes sense to do so again as they turn five. We think we have reason to be proud of Ariel International Fund and Ariel Global Fund’s performance and hope you agree.

      


  • Gilead Sciences Must Answer to Investors After a Disappointing 2016

    Gilead Sciences Inc. (NASDAQ:GILD) delivered a poor performance last year. The stock lost over 24% in 2016, caused by a drop in sales of products that treat hepatitis C. According to Ben Levinsohn in a Barron's article, the decline was also attributed to the company’s lack of a plan for the future.


      


  • Gurus Expand Positions in Entertainment and Travel Companies

    Among the industries, the entertainment and travel industries have high institutional and insider ownership. Such companies include Cinemark Holdings Inc. (NYSE:CNK), Century Casinos Inc. (NASDAQ:CNTY) and Royal Caribbean Cruises Ltd. (NYSE:RCL). As gurus expand their positions in these companies, such companies have good value potential in early 2017.


    High institutional and insider ownership suggest strong value potential

      


  • John Rogers Boosts Berkshire, Rockwell Collins, Tiffany

    John Rogers (Trades, Portfolio) founded Ariel Investment LLC in 1983, and the firm now has a total value of $8.267 billion. During the third quarter the guru’s largest buys were the following:


    The investor raised his position in Berkshire Hathaway Inc. Class B (BRK.B) by 151.06% with an impact of 0.44% on the portfolio.

      


  • Ariel Investments Vice Chair Discusses Finding Attractive Stocks

    Ariel Investments Vice Chairman Bob Bobrinskoy spoke to CNBC Friday about how to find attractive stocks in the higher market. Bobrinskoy said investors should compare stocks to their intrinsic value rather than the market, which has gone up since October.


    Low-priced stocks were merely slightly harder to find, he said. His picks were: KKR & Co. (NYSE:KKR), Borgwarner (NYSE:BWA) and Zimmer Holdings (NYSE:ZBH). The investor also discussed the Dow, small caps and EU banks.

      


  • John Rogers' Ariel Fund November Commentary

    As you know, we have been commemorating the 30th anniversary of our flagship Ariel Fund throughout 2016. And while we have been able to describe how many U.S. equity funds have 30 years of history (207), and how many in that group have had the same manager (just 19), we had to wait for a very important number: the 30-year return figure. At long last, a week into November 2016 we received the 30-year since inception number, which we discuss below.

      


  • Chuck Royce’s Top 3 New Holdings

    Chuck Royce (Trades, Portfolio) of Royce & Associates bought 51 new holdings in the third quarter. His top three new holdings are American Woodmark Corp. (NASDAQ:AMWD), Houlihan Lokey Inc. (NYSE:HLI) and Skechers (NYSE:SKX).


    Royce is the chairman and portfolio manager at Royce & Associates. His firm utilizes an active, bottom-up, risk-conscious and fundamental investment approach. It invests primarily in smaller companies and seeks great stocks that are trading for less than they estimate the company is worth.

      


  • Snap-on: Ratcheting Up Margins and Other Vital Metrics

    Shares of Snap-on Inc. (NYSE:SNA) have jumped 13% since third-quarter earnings were announced a month ago.


    Snap-on is behind all those white vans that sell wrenches and sockets at auto repair shops and dealerships. At least, that is the traditional business; it now operates three other segments that make money as well.

      


  • John Rogers' Commentary for Month of October

    Month Ended October 31, 2016

      


  • Robert Olstein Continues to Buy eBay, Walt Disney

    Robert Olstein (Trades, Portfolio) is the chairman and chief investment officer of the Olstein Financial Alert Fund. In both the second and third quarters the guru bought shares in the following stocks:


    Charles River Laboratories International Inc. (CRL)

      


  • Ariel Manager Discusses Best and Worst Places to Have Money Right Now



  • John Rogers Comments on Contango Oil & Gas Co.

    In addition, natural resources firm Contango Oil & Gas Co. (MCF) dropped -16.50% due to a significant earnings miss. Analysts were expecting the company to lose $0.33 per share, but Contango lost $0.67. Revenues were down significantly versus the previous year, largely due to the slide in the price of oil. Despite the miss, the company has managed to reduce its debt balance to $111 million—a 4% decrease—this year. We think the company is better positioned than most of its peers, and as such believe the stock is positioned to outperform going forward.

      


  • John Rogers Comments on J.M. Smucker Co.

    Other holdings fell back a bit. Jam, peanut butter and coffee company J.M. Smucker Co. (NYSE:SJM) retreated -10.64% due to a recent acquisition that has not met expectations. In 2015, the company moved into pet food as a part of its “center of the store” strategy with the purchase of Big Heart Pet Brands. That unit did not deliver the revenues or profits analysts expected. We believe the shortfall is mainly due to pet food cost deflation and a price war from its chief competitors. We think the management team will get things moving in the right direction and are content to own the stock at a cheaper multiple in the meantime.

      


  • John Rogers Comments on Zebra Technologies Corp

    Also, thermal printer maker Zebra Technologies Corp. (NASDAQ:ZBRA) rose +38.94% due to a strong quarter. After adjusting for a tax benefit, its earnings per share were $1.34, crushing the $1.05 expectation. The company held its flat full year guidance. Wall Street had not previously believed in the company’s turnaround, but is clearly waking up. We think these numbers are just the beginning of the company’s good news.

      


  • John Rogers Comments on Kennametal Inc.

    Some of our holdings rose nicely during the quarter. Cutting tools maker Kennametal Inc. (NYSE:KMT) jumped +32.19% as its modernization efforts started to gain traction. To a large extent this means more automation, which increases efficiency and slashes costs. The company is also focusing on its more profitable, large customers and shedding smaller ones. We see these moves as an essential part of making its moat wider and better; we think the financial benefits will be significant and long lasting.

      


  • John Rogers Comments on BOK Financial Corp.

    In the third quarter, we added new firm-wide holding BOK Financial Corp. (NASDAQ:BOKF) to Ariel Appreciation Fund. BOK Financial is a leading bank holding company that provides services to businesses and individuals located in the middle-south. Skilled underwriting capabilities and an experienced management differentiate BOK Financial from its competitors. Recent macroeconomic headwinds in the energy industry caused by depressed oil and natural gas prices have created significant pressure on the stock price. As a result, we see this as an opportunity to own a conservatively managed bank with a geographic niche.

      


  • John Rogers Comments on Viacom Inc.

    In addition, media firm Viacom, Inc. (NASDAQ:VIAB) declined -7.61% amidst its management shuffle. As you may know, the company ousted CEO Philippe Dauman in August and temporarily replaced him with Chief Operations Officer Tom Dooley. In late September, Dooley announced he was resigning, effective mid-November. Amidst the turbulence, the company declared a 50% cut in its quarterly dividend—a move we felt was prudent. Clearly in the short term the news from Viacom is unsettling, but we continue to believe in the company’s assets and competitive positioning long term.

      


  • John Rogers Comments on J.M. Smucker Co.

    Other holdings fell back a bit. Jam, peanut butter and coffee company J.M. Smucker Co. (NYSE:SJM) retreated -10.64% due to a recent acquisition that has not met expectations. In 2015, the company moved into pet food as a part of its “center of the store” strategy with the purchase of Big Heart Pet Brands. That unit did not deliver the revenues or profits analysts expected. We believe the shortfall is mainly due to pet food cost deflation and a price war from its chief competitors. We think the management team will get things moving in the right direction and are content to own the stock at a cheaper multiple in the meantime.

      


  • Baron Funds Comments on Rollins Inc.

    Rollins, Inc. (NYSE:ROL) is a leading provider of pest and termite control services for more than two million residential and commercial customers, primarily located in North America. We believe that Rollins operates in an industry with high barriers to entry and a fragmented competitive landscape, and we believe Rollins should be able to consistently increase its market share over time. In North America, Rollins is the number one player in commercial and residential pest control and wildlife control, and the number two player in termite control. Developing a well-regarded national brand requires meaningful investment in sales, marketing, employee training and technology, which smaller players simply cannot afford.


    Pests are a major headache for residential customers, and they can lead to meaningful business issues for commercial customers, like restaurants and hotels. Thus, customers are typically willing to pay for these services, regardless of how the economy is performing. As a result, Rollins has demonstrated impressive operating performance across all market conditions, including positive revenue growth during the 2008 and 2009 recession. Furthermore, Rollins has focused significant effort to improve its retention of employees and customers, which has led recurring revenues to represent approximately 80% of the company’s total.

      


  • Baron Funds Comments on Inovalon Holdings Inc.

    Shares of health care data and analytics vendor, Inovalon Holdings, Inc. (NASDAQ:INOV), detracted from performance, as its financial results fell short of investor expectations and the company reduced its guidance for the remainder of 2016. Management attributed the shortfall to two issues: price reductions in its retrospective risk adjustment unit, and a margin shortfall stemming from investments designed to drive long-term growth. We are hopeful that the company’s latent earnings power will soon become apparent.

      


  • British American Tobacco Proposes Merger With Reynolds

    British American Tobacco (LSE:BATS)(BTI) presented a merger proposal to Reynolds American Inc. (NYSE:RAI) on Friday with a total offer of $47 billion.


    The London-based tobacco company already owns 42.2% of Reynolds. British American is offering $56.50 per share for the remaining 57.8% of the company, of which $24.13 would be in cash and the remaining $32.37 would be in British American shares. The proposal represents a 20% premium over Reynolds’ closing price on Oct. 20.

      


  • Ariel Fund 3rd Quarter Commentary

    Quarter Ended September 30, 2016

      


  • Ariel Appreciation Fund 3rd Quarter Commentary

    Equity markets shook off the malaise that took hold at the end of the second quarter—remember Brexit?—to post a strong quarter all around. Returns were especially good in domestic small caps and international stocks. While the S&P 500 Index advanced +3.85%; the Russell 2000 Index jumped +9.05%; and the MSCI EAFE Index rose +6.43%. The third quarter was the best period for the MSCI EAFE Index in nearly three years, and the best for the Russell 2000 Index in almost two years. We do not believe much changed to drive this result: we simply think people recognized the economy is sound and interest rates remain low—a good environment for equities. This quarter, Ariel Appreciation Fund rose +7.00%, outperforming the Russell Midcap Value Index’s +4.45% rise, as well as the +4.52% return of the Russell Midcap Index.


    Some of our holdings rose nicely during the quarter. Cutting tools maker Kennametal Inc. (NYSE:KMT) jumped +32.19% as its modernization efforts started to gain traction. To a large extent this means more automation, which increases efficiency and slashes costs. The company is also focusing on its more profitable, large customers and shedding smaller ones. We see these moves as an essential part of making its moat wider and better; we think the financial benefits will be significant and long lasting. Also, asset manager and financial advisory firm

      


  • John Rogers' Ariel Funds Commentary for Month of September

    Equities had strong returns in the third quarter of 2016, and predictably the urge to sell U.S. stocks is rising. One group advances the “take some chips off the table” strategy. After small caps of the Russell 2000 Index leapt +9.05% and the S&P 500 Index’s large caps advanced +3.85% this quarter, they wish to capture gains by going to cash. Others make a valuation argument: the S&P 500 Index has a price/earnings (P/E) ratio approaching 25x, above the long-term average of 16x. From this perspective, equities are expensive and are likely to revert toward the mean. These views are common: more than half of professional investors expect either a bear market or a correction.

      


  • John Rogers Trims Spartan Motors, Gaia

    John Rogers (Trades, Portfolio) is the Founder of Ariel Investment LLC. He manages a portfolio composed of 192 stocks with a total value of $7,965 million. According to GuruFocus Real-Time picks, the most recent trades, done during the third quarter, are the following.


    The investor reduced his stake in Spartan Motors Inc. (NASDAQ:SPAR) by 18.27% with an impact of -0.05% on the portfolio.

      


  • Pier 1 Imports Swallows Poison Pill

    The board of Pier 1 Imports Inc. (NYSE:PIR) announced it had adopted a shareholders’ rights agreement on Tuesday.


    The agreement, sometimes called a poison pill, is designed to keep away unwanted takeovers. However, in this case, the agreement simply does not allow any person or group to acquire ownership of 10% or more of the company’s outstanding common stock.

      


  • Ariel Funds Comments on Harman Intl Industries Inc.

    Also, Harman Intl Industries, Inc. (NYSE:HAR) fell -19.07% in the second quarter, after a disappointing earnings report. The company missed estimates and also lowered its full-year guidance. Results in its professional unit were considerably weaker, down more than 5% from a year earlier. We continue to think the shift toward “infotainment” will turn the brand around.

    From John Rogers (Trades, Portfolio)' second quarter 2016 Ariel Global Fund commentary.   


  • Ariel Funds Comments on Baidu Inc.

    Other holdings experienced a short-term struggle. Baidu, Inc. (NASDAQ:BIDU) shares fell -13.48% in the second quarter. Chinese regulators opened an investigation on news that a university student died after using the site to find alternative treatments for cancer. Baidu implemented changes, such as capping the number of ads per page to 30% and establishing a 1 billion yuan fund to fight fraud.

    From John Rogers (Trades, Portfolio)' second quarter 2016 Ariel Global Fund commentary.   


  • Ariel Funds Comments on GlaxoSmithKline plc

    In addition, GlaxoSmithKline plc (NYSE:GSK) rallied +7.74%1 in the second quarter, after reporting profit growth for the first time since 2013. Glaxo is seeing benefits from its purchase of Novartis’ vaccines unit. Demand for vaccines and new drugs helped offset declines in the sales of blockbuster asthma medication Advair.

    From John Rogers (Trades, Portfolio)' second quarter 2016 Ariel Global Fund commentary.   


  • Ariel Funds Comments on Johnson & Johnson

    Medical giant Johnson & Johnson (NYSE:JNJ) rallied +12.66%, due to a strong earnings report. In April the company beat analysts’ estimates and also raised guidance for the year. Earnings were driven by strong sales of drugs like Stelara and Xarelto. At this point pharmaceuticals are the company’s largest business division—ahead of powerhouses such as medical devices and consumer health products. We think the trajectory of the business continues to point upward.

      


  • John Rogers' Ariel Global Fund 2nd Quarter Commentary

    For the second quarter in a row, investors will likely remember the harrowing ride better than the end result. That is, domestic stocks posted solid gains and foreign shares had relatively mild losses. In the meantime, however, there was Brexit. On June 23, 2016 the British people shocked the world by voting for the United Kingdom to exit the European Union—an enormously complex and economically risky decision. As you know, the market hates uncertainty. And so in response, foreign stocks plummeted - 10%, small caps dove -7%, and large caps sank -5%. But once investors fully digested the news, stocks jumped back up—nearly erasing their losses in the U.S. Overseas the short-term damage from Brexit still showed; the financial-heavy value indexes significantly lagged the core and growth indexes. In the end, U.S. value fare outpaced growth stocks for the second quarter in a row—definitively ending a very long run of outperformance from the growth side.

      


  • 10 Stocks John Rogers Keeps Buying

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC, which he started in 1983. He is also a long-term Forbes columnist, writing a column called "Patient Investor." In both the first and second quarters, the guru bought shares in the following stocks.


    Cullen/Frost Bankers Inc. (CFR)

      


  • Ariel Funds: Interest Rates Are Gravity That Pulls Stocks Down



  • Charles Bobrinkskoy of Ariel Funds: Stock Market Is Not That Expensive

    Ariel Investments Vice Chairman and Head of Investment Group Charles Bobrinkskoy advises investors not to try to time the Fed's interest rates decision and buy underpriced sectors. Light cyclicals and financials are very cheap right now, he said. He mentions powertrain company BorgWarner (NYSE:BWA) as an example of an attractve stock.


      


  • John Rogers' Ariel Investments August Commentary

    We think investing in the markets without knowing about recent shifts is a bit like trying to hit a piñata while blindfolded (of course). So in our commentaries we strive to give overviews to our investors. In May we examined year-to-date returns. As you may remember, value fare was outperforming growth, especially in smaller-cap stocks; a reversal of the growth-dominated rally that started in early 2009. This month we examine mutual fund flows, because they are another tool for measuring investment sentiment.

      


  • John Rogers Comments on Abbott Laboratories

    In addition, cardiovascular muscle devices maker St. Jude Medical, Inc. (NYSE:STJ) popped +42.39% after a takeout offer. Specifically, Abbott Laboratories (NYSE:ABT) offered $ 46.75 in cash and 0.9 shares of Abbott stock for each share of St. Jude. The stock jumped more than 25% on the news of the offering.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers Comments on KKR & Co. L.P.

    Also, private equity group KKR & Co. L.P. (NYSE:KKR) declined -15.00% due to a soft earnings report combined with Brexit fears. The company reported a loss of -$0.65 per share, well below consensus of -$0.34 per share. The key reason for the miss was an unfavorable mark-to-market on the balance sheet, largely due to its First Data Corp. (FDC) holding. Then, as Brexit occurred toward the end of the quarter, KKR was one of the hardest-hit stocks in the financial sector. We think the short-term earnings report and the overreaction to a political shift do little to harm the company’s long-term value.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers Comments on BorgWarner Inc.

    Other holdings experienced a short-term struggle. Powertrain expert BorgWarner Inc. (NYSE:BWA) returned -22.83% since we purchased it in February after lowering multi-year expectations. Although the company’s growth over the next couple of years may not be as strong as previously expected, it continues to grow. Plus its long-term prospects are excellent. The market continues to worry over the emergence of all-electric vehicles. Yet we believe BorgWarner still has a huge position in traditional as well as hybrid vehicles, which together, we think, will likely constitute a vast majority of the market for years to come. Moreover, it is not simply an American company but a global player. We continue to think the company’s present is solid and its future very bright.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers Comments on Barrick Gold Corp

    Some of our holdings performed well during the quarter. Gold miner Barrick Gold Corp. (NYSE:ABX) jumped +57.40% as the price of gold continued to rise. Specifically, gold rose from approximately $1,220 to $1,320 over the course of the quarter. The jump proved big for gold miners as their product jumped in price but their costs remained stable. Barrick remains the biggest and, we think, the best gold miner.

    From John Rogers (Trades, Portfolio)' second quarter 2016 market commentary.   


  • John Rogers' Ariel Focus Fund 2nd Quarter Commentary

    For the second quarter in a row, investors will likely remember the harrowing ride better than the end result. That is, domestic stocks posted solid gains and foreign shares had relatively mild losses. In the meantime, however, there was Brexit. On June 23, 2016 the British people shocked the world by voting for the United Kingdom to exit the European Union—an enormously complex and economically risky decision. As you know, the market hates uncertainty. And so in response, foreign stocks plummeted - 10%, small caps dove -7%, and large caps sank -5%. But once investors fully digested the news, stocks jumped back up—nearly erasing their losses in the U.S. Overseas the short-term damage from Brexit still showed; the financial-heavy value indexes significantly lagged the core and growth indexes. In the end, U.S. value fare outpaced growth stocks for the second quarter in a row—definitively ending a very long run of outperformance from the growth side.

      


  • John Rogers Buys MSG Networks

    John Rogers (Trades, Portfolio) of Ariel Investment LLC purchased 1,884,145 shares in MSG Networks Inc. (NYSE:MSGN) for an average price of $16.05 per share on July 31. He now holds 6,268,842 shares.


    Rogers has been involved with the company since the first quarter of 2011. The purchase had an impact of 0.36% on his portfolio.

      


  • John Rogers Discusses Buffett-Inspired Moats in July Commentary

    As you know, Ariel traces its philosophical lineage directly to the world’s greatest investor, Warren Buffett (Trades, Portfolio). Buffett’s beliefs and teachings have influenced many aspects of our core traditional value strategy, from the importance of staying within a well-defined circle of competence to the topic we will discuss this month: the economic moat1.  


  • John Rogers Comments on Viacom

    During the second quarter, we added media company Viacom, Inc. (NASDAQ:VIAB) to Ariel Fund. While acknowledging investor concerns toward the cable business model stemming from changing media consumption patterns and technology platforms, we view Viacom as an underappreciated security in the market. Also a current holding in Ariel Appreciation Fund, we believe Viacom’s content will provide attractive economics regardless of the distribution medium.

    From John Rogers (Trades, Portfolio)' Ariel Fund second quarter 2016 commentary.   


  • John Rogers Comments on Bristow Group Inc.

    Also, helicopter services company Bristow Group Inc. (NYSE:BRS) returned - 39.41% due to uncertainty in its business. As you know, oil prices increased more than +25% over the course of the quarter—which marginally improves its business in the intermediate term. Yet the market reacted poorly to its quarterly earnings report: it earned $0.13 per share versus the consensus of $0.55. Plus, management declined to give guidance for its oil and gas segment. While earnings are temporarily constrained we think the long-term opportunity remains sound.

    From John Rogers (Trades, Portfolio)' Ariel Fund second quarter 2016 commentary.   


  • John Rogers Comments on Lazard Ltd

    Other holdings experienced a short-term struggle. Asset manager and transaction advisor Lazard Ltd (NYSE:LAZ) fell -22.44% after a weak earnings report. Specifically, the company reported adjusted quarterly earnings of $0.50 per share, short of the consensus $0.65 expectation. Revenues were a bit light, while a higher compensation ratio drove the bulk of the miss. In addition, there were net outflows of $361 million in the quarter. We continue to believe the company has a considerable advantage in the crucial emerging markets investment niche.

    From John Rogers (Trades, Portfolio)' Ariel Fund second quarter 2016 commentary.   


  • John Rogers Comments on Dun & Bradstreet Corp

    In addition, credit specialist Dun & Bradstreet Corp. (NYSE:DNB) rose +18.67% after a strong earnings report. After some disappointing numbers in 2015, Wall Street lost faith that the company would get back to its traditional growth rates. This quarter revenues were strong in the U.S., margins were materially better than expected, and so the adjusted earnings per share hit $1.18 (well above the $0.95 consensus). We think Dun & Bradstreet has a solid plan to keep growing, so we plan to remain patient—as we have been all along.

    From John Rogers (Trades, Portfolio)' Ariel Fund second quarter 2016 commentary.   


  • John Rogers Comments on Silica Holdings

    Some of our holdings performed well during the quarter. High-quality industrial sand producer U.S. Silica Holdings, Inc. (NYSE:SLCA) surged +52.01% as oil prices recovered.


    Specifically, the price of crude oil moved fromapproximately $35 to $52 before settling back. This move gave investors confidence that oil and gas producers, U.S. Silica’s core customer base, will remain big customers of the firm. We continue to see Silica as having a significant logistical advantage over peers in its crucial niche.

      


  • John Rogers' Ariel Fund 2nd Quarter Commentary

    Quarter Ended June 30, 2016

      


  • Ariel Investments' Charlie Bobrinskoy Discusses European Stress Test Results

    European banks released their stress test results Friday, and Ariel Investments, led by John Rogers (Trades, Portfolio), worries about their safety.

    "There's too much risk to be investing in these names," he said. "They just don't represent a good risk-reward trade-off. Clearly the European bank authorities don't want to send a signal that there are real problems in the system. There are real problems in the system, particularly in Italy."   


  • John Rogers' Ariel Fund June Commentary

    Obviously, the Brexit vote was the big event this month, and what a short, strange trip it has been. On June 23rd, the United Kingdom’s citizens voted whether to Remain a part of the European Union (Bremain) or to Leave it (Brexit). This referendum was born in 2013, when Prime Minister David Cameron promised there would be a stay/go vote if he were re-elected. At the time, low rumblings came from some who were dissatisfied with the E.U.; Cameron firmly believed in the Union. He considered the referendum low risk—he was wrong. Leading up to the vote, the British political betting markets showed an 88% chance Bremain would win; public opinion polls leaned that way but less firmly. In the end, more than 30 million voters (greater than 70% of eligible voters) voted to leave the E.U. by a 52% to 48% margin. Experts were stunned, the media scrambled, and the British pound fell -10.67% (versus the dollar) in just two days. Cameron announced he would resign.

      


  • John Rogers Continues to Buy Morgan Stanley, Ansys

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC, which he started in 1983. In both fourth quarter 2015 and first quarter 2016 the guru bought shares in the following stocks:


    HSBC Holdings PLC (HSBC)

      


  • John Rogers Buys DeVry, American Express

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC, which he started in 1983. During the first quarter he bought shares in the following stocks:


    The guru increased his stake in Northern Trust Corp. (NTRS) by 59.09% with an impact of 0.74% on the portfolio.

      


  • John Rogers Exits Blount International in 1st Quarter

    The largest first-quarter transactions made by John Rogers (Trades, Portfolio), founder of Ariel Investment LLC, were not acquisitions but sales of stakes and portions of stakes in his portfolio. Here is a rundown of some of his largest deals.


    Rogers sold his 7,536,792-share stake in Blount International Inc. (NYSE:BLT), a Portland, Oregon-based maker of replacement parts, equipment and accessories for chain saws and other outdoor products, for an average price of $9.59 per share. The divestiture had a -0.89% impact on Rogers’ portfolio.

      


  • John Rogers Commentary for Month Ended May 31, 2016

    We traditionally examine domestic market leadership near the midpoint of the year. At this point last year, growth stocks were crushing value equities as optimism dominated. This year the mood has shifted significantly, highlighted by value stocks’ leadership. Here are the 12 Russell indexes we use to assess this sentiment:


    Eleven of these indexes are up in 2016; only the Russell 2000 Growth Index is down. Value stocks have turned the table and are outperforming growth stocks. The four top returns all come from value indexes; the four worst returns come from growth benchmarks. Turning to market cap differences, small caps are mainly lagging large caps.

      


  • Stocks Fall to 5-Year Lows

    According to GuruFocus' list, these guru stocks have reached their five-year lows: Bed Bath & Beyond Inc. (NASDAQ:BBBY), Nordstrom Inc. (NYSE:JWN), Fossil Group Inc. (NASDAQ:FOSL) and DeVry Education Group Inc. (NYSE:DV).


    Bed Bath & Beyond reaches $45.57

      


  • Jim Chanos Acquires Stake in KKR & Co.

    Guru Jim Chanos (Trades, Portfolio) purchased a 326,958-share stake in KKR & Co. LP (NYSE:KKR) in the first quarter.


    KKR & Co. has a market cap of $5.66 billion, an enterprise value of $29.72 billion, a P/B ratio of 1.08 and a dividend yield of 8.62.

      


  • John Rogers Comments on STRATTEC Security Corp

    STRATTEC Security Corp. (NASDAQ:STRT) designs, manufactures and sells automotive access control products. It has a clean balance sheet and trades near tangible book value. Additionally, advancement in automated cars should provide a tailwind, driving demand for STRATTEC products. Lastly, West Marine, Inc. (WMAR) operates retail stores for boating supplies and accessories. The company trades at a sizable discount to book value despite being profitable, and has a clean balance sheet with no debt and excess cash. West Marine is positioned to take advantage of an ongoing recovery in the boating industry.

    From John Rogers (Trades, Portfolio)' first quarter 2016 Ariel Discovery Fund Commentary.   


  • John Rogers Comments on Real Industry Inc.

    Real Industry Inc. (NASDAQ:RELY) is a holding company based in Southern California backed by notable investors, including Sam Zell. With over $800 million in federal net operating losses (NOLs), management plans to acquire cash generating, stand-alone businesses that can utilize the NOL asset. Its first major purchase was Real Alloy, an aluminum recycling company. We believe the value of Real Alloy alone is more than the current market capitalization of Real Industry.

    From John Rogers (Trades, Portfolio)' first quarter 2016 Ariel Discovery Fund Commentary.   


  • John Rogers Comments on Rentech Inc.

    Also, clean energy solutions provider Rentech, Inc. (NASDAQ:RTK) dropped -36.93% amidst disappointing short-term earnings. Specifically, the company posted a loss of $0.48 after analysts predicted a loss of $0.08. As long-term owners of the stock, we know the business can be relatively lumpy and are comfortable with it. We continue to believe the market misunderstands the company, it structure and its promise.

    From John Rogers (Trades, Portfolio)' first quarter 2016 Ariel Discovery Fund Commentary.   


  • John Rogers Comments on Century Casinos Inc.

    Other holdings slid in the short term. Gaming firm Century Casinos, Inc. (NASDAQ:CNTY) slid -20.82% after a weak earnings report. Specifically, the company reported $0.03 in earnings per share, missing consensus estimates of $0.11—largely due to soft revenues. We continue to think the stock trades at a deep discount to its intrinsic worth and believe its long-term trajectory will surpass Wall Street expectations.

    From John Rogers (Trades, Portfolio)' first quarter 2016 Ariel Discovery Fund Commentary.   


  • John Rogers Comments on Contango Oil & Gas Co.

    In addition, natural resources exploration and production company Contango Oil & Gas Co. (MCF) gained +83.93% as the price of oil recovered during the quarter. There was no other significant news beyond oil’s rebound—which was good news enough for Contango. Crude oil started 2016 at close to $37 per barrel, sank to a low of $26 in mid-February, then marched back above $40 before settling back a bit. Although the commodity essentially was flat, the rebound showed its year-and-a-half long slide has perhaps found a floor. We continue to think Contango has unrecognized value.

    From John Rogers (Trades, Portfolio)' first quarter 2016 Ariel Discovery Fund Commentary.   


  • John Rogers Comments on ORBCOMM Inc.

    Machine-to-machine communications company ORBCOMM, Inc. (NASDAQ:ORBC) continued the nice run it began in late 2015, rising +39.92%. There was not much news in 2016, but as we mentioned in late 2015, the unfolding story was only starting to take hold and should have long legs in our view. With its full satellite “constellation” launched and operational, the company’s once-considerable capital expenditures will dwindle and profits can now fall to the bottom line. We have been selling into strength but still own the stock.

    From John Rogers (Trades, Portfolio)' first quarter 2016 Ariel Discovery Fund Commentary.   


  • John Rogers' 1st Quarter 2016 Ariel Discovery Fund Commentary

    The first quarter of 2016 was flat in some places and down slightly in others, but we doubt most investors remember it that way. The carnage in January was harsh, and daily volatility has been high, so many likely think of it as a rough three months. Yet the last half of the quarter largely recouped the losses from the first half. Among the three broad indexes tracking our asset classes, one was up a small amount and the other two were down. U.S. large caps were up a small amount. On the other hand, domestic small caps slipped a bit and foreign stocks were down. When U.S. large caps are up while U.S. small caps and foreign stocks retreat, we generally think it says more about sentiment than economics. That is, U.S. large caps are seen as providing stability whereas small caps and foreign stocks are seen as more risky. The discrepancy between domestic value and growth indexes says the same. That is, growth indexes from the large-, mid-, and small- cap universe ranged from less than +1% up to down nearly -5%, while the value counterparts were up more than +1% to +4%. For more than a year investor sentiment has gone up and down without a strong trend.


    This quarter, Ariel Discovery Fund rose +2.20%, ahead of the Russell 2000 Value Index’s +1.70% gain, as well as the +1.35% rise of the S&P 500 Index.

      


  • John Rogers Comments on Bristow Group Inc.

    Also, helicopter operator Bristow Group Inc. (NYSE:BRS) fell -26.60% on two pieces of news: a helicopter crash and a dividend cut. Helicopter crashes are quite rare and very unfortunate, but they do occur. Turning to the dividend cut, some saw it as cause for worry, but we thought it represented prudent balance sheet management. Wall Street fears that oil companies will not only cut exploration but also production—which would hurt Bristow. While exploration cuts are realistic possibilities; we think production cuts are quite unlikely. The stock’s volatility has created buying opportunities.

      


  • John Rogers Comments on JLL

    Other holdings slid in the short term. Real estate expert JLL (NYSE:JLL) drifted -26.61% after a soft earnings report. The company reported adjusted earnings per share of $4.53, below the consensus estimate of $4.78. Currency had the biggest negative impact, although revenues were soft even though they were up year-over-year. Management delivered a steady outlook and said leasing volumes are improving. We are quite content to own this powerhouse through the ups and downs of the business cycle.

      


  • John Rogers Comments on Mattel Inc.

    In addition, toymaker Mattel, Inc. (NASDAQ:MAT) jumped +25.27% on news of its merger discussions with Hasbro, Inc. (NASDAQ:HAS). Nothing has happened to date, and nothing may happen. We find the news encouraging because it shows strategic flexibility. We think the company will thrive with or without a merger, and that it can continue to adapt as the digital entertainment world grows.

      


  • John Rogers Comments on Brady Corp

    Some of our holdings had strong returns for the quarter. Identification solutions specialist Brady Corp. (NYSE:BRC) surged +17.87% after a very strong earnings report. The company posted earnings per share of $ 0.30, well above the $0.23 consensus. Revenues were up slightly before currency effects, with operating margins improving a great deal. Moreover, management increased earnings guidance by roughly 10%. The company continues to focus on its growing circle of competence, a strategy we applaud.

      


  • John Rogers' 1st Quarter 2016 Ariel Fund Commentary

    The first quarter of 2016 was flat in some places and down slightly in others, but we doubt most investors remember it that way. The carnage in January was harsh, and daily volatility has been high, so many likely think of it as a rough three months. Yet the last half of the quarter largely recouped the losses from the first half. Among the three broad indexes tracking our asset classes, one was up a small amount and the other two were down. U.S. large caps were up a small amount. On the other hand, domestic small caps slipped a bit and foreign stocks were down. When U.S. large caps are up while U.S. small caps and foreign stocks retreat, we generally think it says more about sentiment than economics. That is, U.S. large caps are seen as providing stability whereas small caps and foreign stocks are seen as more risky. The discrepancy between domestic value and growth indexes says the same. That is, growth indexes from the large-, mid-, and small- cap universe ranged from less than +1% up to down nearly -5%, while the value counterparts were up more than +1% to +4%. For more than a year investor sentiment has gone up and down without a strong trend.

      


  • Gilead, Fossil Among Stocks Trading Below Lynch Earnings Line

    Former Magellan fund manager Peter Lynch devised a method of determining whether stocks are over or undervalued by equating $1 in earnings with $15 in stock price. The earnings line was introduced in his best-selling book “One Up on Wall Street.”


    A graph comparing the Peter Lynch earnings line with the actual stock price can be found on the summary pages of each stock on GuruFocus. The Peter Lynch Screen is also available to automatically search for high-performing undervalued stocks. Five of these picks are listed below.

      


  • Ariel Investments Discusses Banks

    Charles Bobrinskoy of Ariel Investments likes banks because they seem inexpensive and had only short-term problems. He thinks Citigroup (NYSE:C) is too difficult to analyze, but JPMorgan (NYSE:JPM) is attractive.
      


  • John Rogers' Ariel Investments March Commentary

    As we examined the results of our three traditional value mutual funds this quarter, there was one common detrimental thread— the lack of utilities stocks. The sector has been on a tear, meaning that our avoidance of the area hurt short-term returns broadly. This commentary will address the performance issue, explain why people seem to gravitate toward this sector, and why we generally avoid utilities companies.

      


  • John Rogers Ups Stake in Anixter International

    Guru John Rogers (Trades, Portfolio) got into investing in middle school. When Rogers was just 12 years old, his father began to purchase securities for his son's Christmas and birthday presents. This is when Rogers began to gain an interest in reading about the stock market. Rogers attended Princeton University where he majored in economics, and he continued his ambitious approach to learning after his graduation.


    Rogers began working as a stockbroker shortly after his graduation at William Blair & Co. before he founded Ariel Investments in 1983. Ariel Investments began as a small and mid-cap value manager, and evolved strategically looking for companies that have attractive intrinsic value through extensive research. Ariel Investments currently has 88 employees with $10 billion in assets under management.

      


  • John Rogers Invests in Bristow Group, Kindred Biosciences

    John Rogers (Trades, Portfolio), founder of Ariel Investment LLC, added to two stakes in his portfolio – Bristow Group Inc. (NYSE:BRS) and Kindred Biosciences Inc. (NASDAQ:KIN) – on March 31.


    The guru raised his stake in Bristow Group, a British helicopter services provider, nearly 24% with the acquisition of 1,895,773 shares for $18.92 per share. The deal had a 0.43% impact on Rogers’ portfolio.

      


  • John Rogers' Recent Trades

    John Rogers (Trades, Portfolio) is the founder of Ariel Investment LLC, which he started in 1983. As of 2008, the firm had over $15.5 billion in assets under management. The following are his first trades during the first quarter:


    His stake in Cowen Group Inc. (COWN) has been raised by 53.76%. The deal had an impact of 0.16% on the portfolio.

      


  • Low PS Stocks That Are Still Expensive

    According to GuruFocus' All-in-One Screener, the following are companies with a market cap above $5 billion that are trading with a very low P/S ratio.


    Progressive Corp. (PGR) is trading at about $35.48 with a P/S ratio of 1.00 and an estimated P/E multiple of 16.40. The company has a market cap of $20.73 billion and over the last 10 years, the stock has risen by 37%. During the last 52 weeks, the price has been as high as $35.50 and as low as $26.44.

      


  • John Rogers Adds to Stake in Cowen Group

    John Rogers (Trades, Portfolio) began his passion for investing at the ripe age of 12, when his father began buying him securities for Christmas and his birthday. As Rogers grew older, his passion for investing grew with him. Rogers attended Princeton University, where he majored in economics, and his thirst for learning about equities continued to grow. He then founded Ariel Investments in 1983.


    In the first quarter of 2016, Rogers added 3,957,480 shares of Cowen Group Inc. (NASDAQ:COWN).

      


  • Stocks Fall to 5-Year Lows

    According to GuruFocus, these guru stocks have reached their five-year lows: Rosetta Stone Inc. (NYSE:RST), Aegerion Pharmaceuticals Inc. (NASDAQ:AEGR), JMP Group LLC (NYSE:JMP) and Five Star Quality Care Inc. (NASDAQ:FVE).


    Rosetta Stone reached $6.85

      


  • John Rogers' Ariel Investments Commentary on February

    Lately people have been talking a lot about volatility in the stock market. Oftentimes when volatility is being discussed, the market is falling rather than rising. Strictly speaking, volatility addresses the “dispersion of returns,” or how much prices bounce around— whether up or down. It may surprise some that when standard monthly measurements are used, the broad markets have actually moved from a low level of volatility to a more normal level as returns have shifted to flat or down in recent months. The discussion of volatility does have merit—when using other measurements one can see why people are talking about it.

      


  • Tilson Explains New Short in Lumber Liquidators in 1 Word: Cancer

    Whitney Tilson (Trades, Portfolio), founder of Kase Capital Management, released a presentation Tuesday regarding his new short position in Lumber Liquidators (NYSE:LL), outlining six main reasons that may lead to a 50-50 chance of the company reaching bankruptcy.


    Tilson first announced a short position in the flooring company in November 2013 on allegations that Lumber Liquidators was selling Chinese-made flooring tainted with formaldehyde, putting customers at risk for cancer. He then covered the short this past December on a tip that company management was unaware that it was selling toxic flooring. With no “smoking gun,” Tilson wrote in the presentation that “the company was sloppy and naïve, but not evil.”

      


  • Viacom, AutoNation Among Undervalued Guru Stocks

    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 a wide margin of safety and at least five gurus are shareholders.


    Viacom Inc. (VIAB) is trading at the price of $38, but the Peter Lynch earnings line gives the company a fair price of $69.91, giving the stock a margin of safety of 45%. It is trading with a PE ratio of 9.29 that is ranked lower than 85% of its competitors in the Global Media – Diversified industry. It is currently 47.20% below its 52-week high and 28.93% above its 52-week low.

      


  • Guru Stocks With High, Growing Dividend Yields

    The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.


    The Western Union Co. (WU) has a trailing dividend yield of 3.44% with a three-year growth rate of 13.40% and a five-year growth rate of 19.20%. The stock is now trading with a trailing 12-month P/E multiple of 11.10 and an estimated forward P/E multiple of 10.29. During the last 12 months, the stock price has dropped by 7%.

      


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