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Nierenberg Sheds Shares of Top Holding, Move Inc.
Posted by: Dianne Tordillo (IP Logged)
Date: November 30, 2012 01:58PM
As of Nov. 28, David Nierenberg of micro-cap-focused investment company, D3Family Funds, has reported to eliminating 1.75 million shares off his top holding, Move Inc., according to GuruFocus Real Time Picks. Selling the shares at an average price of $7.40, the reduction totaled 33.79 percent of his shareholding, leaving a 5.93 percent impact to his overall portfolio.
Nierenberg first acquired the online real estate stock in the second quarter, starting off with almost 5.3 million shares at an average price of $8.65 at the time. This recent transaction makes it his second stake reduction since purchasing the stock.
Currently, Move Inc. is selling close to its one-year low at $7.36, for this morning’s trading.
With a market cap of $310 million, Move Inc. operates the Move Network, a real estate website that collectively captures listings from some of the top online real estate websites in the industry, including REALTOR.com, ListHub, SeniorHousingNet.com and Homefair.com.
In the third quarter, Move increased its revenue by six percent, generating $49.4 million compared to $46.5 million in the same time last year. The company also improved in adjusted EBITDA, expecting its margin to grow up to 15 percent for the rest of the year, which is a positive sign due to the fact that Move’s management relies highly on adjusted EBITDA to project the company’s performance.
Steve Berkowitz, Move CEO, said he looks forward to seeing this positive trend in revenue and EBITDA in the quarters ahead.
“Combined with continued indicators of a slow but steady path to recovery in the housing market, we expect to end the year on a positive note and set the stage for revenue acceleration in 2012,” he said in Move’s third quarter fiscal release.
Though this suggested path to recovery in the housing market has strengthened the confidence of many real estate professionals, the instability of the economy still has yet to secure favorability among the majority of consumers.
In an interview with value investing idea site, The Manual of Ideas, earlier this year, Nierenberg mentions that D3Family Funds actually aims for these out-of-favor sectors, to “sniff through the rubble” and find stocks whose share prices are depressed, and are relatively illiquid (d3familyfund.com).
Out of the eight stocks in his portfolio, Nierenberg’s top holdings, remain (in order by weighting): Move Inc. (MOVE), Electro Scientific Industries (ESIO), Asset Acceptance Capital Corp. (AACC), Superior Energy Services Inc. (SPN) and Rosetta Stone Inc. (RST).
The technology sector makes up the second largest sector in Nierenberg’s portfolio, right after the industrials sector. His portfolio has a total value of $220 million, and has a quarter-over-quarter turnover rate of 4 percent.
To view more of his latest trades, visit David Nierenberg’s stock picks. Also view his current portfolio, as well as the latest articles about him on GuruFocus article archives.
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Guru Discussed: David Nierenberg: Current Portfolio, Stock Picks
Stocks Discussed: MOVE, ESIO, AACC, SPN, RST,
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