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Blum Reduces AVID and PRGX Stakes by Average 9.4%
Posted by: Dianne Tordillo (IP Logged)
Date: October 3, 2012 04:47PM
Today, Blum Capital Partners’ Richard Blum sells 7.9% of his shares of PRGX Global Inc. (PRGX), and 11.01% of his shares of Avid Technology Inc. (AVID). This represents more than 230,000 PRGX shares sold at $8.56 per share, and almost 900,000 AVID shares sold at $9.48 per share, according to GuruFocus Real Time Picks.
Average stock prices for both companies have gone up since the end of the second quarter. PRGX added about $1.79 to its price per share, and AVID similarly increased its price per share by about $1.59. Both companies have undergone declining revenue growth percentages in the last five years; PRGX is down by 22.2%, while AVID is down by 6.1%.
PRGX Global Inc. is an Atlanta-based global provider of recovery audit and analytical services. It has served clients in more than 30 countries, and has expanded its services to industries including retail, manufacturing, energy, communications, healthcare, government and travel.
With a GuruFocus Business Predictability Rank of one star, PRGX holds a Financial Strength ratio of 5 out of 10 and a Profitability & Growth ratio of 5 out of 10. Its P/E ratio is 72.9 and its P/S ratio is 1.1.
Avid Technology Inc. holds similar rankings on GuruFocus. Also with a Business Predictability Rank of one star, AVID has a Financial Strength ratio of 5 out of 10, a Profitability & Growth ratio of 4 out of 10, a P/E ratio of 14.2 and a P/S ratio of .5.
Founded in 1987, Avid Technology is a company that develops digital audio and video technology, whose target consumers fit a wide and varied spectrum including film and television production, music, video editing, music, live sound and education. Its brands include M-Audio, Avid’s audio solutions branch that develops speakers, microphones and digital DJ systems, Pinnacle Systems, providing software for home video editing, and Sibellius, a software for professional music composition and education.
Blum, whose investment philosophy includes “exercising patience and discipline in waiting for opportunities to present themselves,” has also made headlines in the last month for downsizing its stakes in global commercial real estate firm CBRE Group Inc. (CBG), selling more than 9 million shares for about $17 per share. This move brought Blum’s stake to CBG down to 4%.
Although Blum’s last few investment moves involved share reductions, trends do not completely denote a lack of confidence.
Just last June, Blum reported buying more shares of JDA Software Group Inc. (JDA), another member of the technology sector (as with AVID) that targets business growth software solutions, as well as more shares of eResearch Technology (ERT), a software applications provider targeting the pharmaceutical, biotechnology and medical device industries (as with both AVID in the tech sector and PRGX in the analytical and diagnostics services).
Guru Discussed: Richard Blum: Current Portfolio, Stock Picks
Stocks Discussed: PRGX, AVID, CBG, JDA, ERT,