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Hedge Fund Billionaire Mario Gabelli´s Latest Positions
Posted by: Vanina Egea (IP Logged)
Date: February 21, 2014 05:16PM

Mario Gabelli (Trades, Portfolio) is chairman, and CEO of Gabelli Asset Management Company Investors (GAMCO Investors). In recent days he bought three new stocks, and holds 824 in total, in a portfolio valued at $18.7 billion.

NuPathe Inc. (PATH)

Gabelli revealed owning a stake of 1,313,500 NuPathe Inc. shares, worth 0.01% of his portfolio. NuPathe Inc. has a market cap of $142 million; its shares are trading currently at around $4.3 with a P/B ratio of 18.4.

NuPathe is a specialty pharmaceutical company, focusing on the development and commercialization of branded therapeutics for neurological and psychiatric disorders. Teva Pharmaceutical Industries Ltd. (TEVA) announced a tender offer for all of the outstanding shares of common stock at a price of $3.65 per share in cash, and NuPathe stockholders will receive rights to receive additional cash payments of up to $3.15 per share The firm will become a wholly owned subsidiary of Teva, and common stock will cease to be traded on the Nasdaq following completion of the merger.

Hedge fund gurus have also been active in the company: Jim Simons (Trades, Portfolio) and Ronald Muhlenkamp (Trades, Portfolio) have invested in it.

ATMI Inc. (ATMI)

Gabelli reported a stake of 1,193,900 shares of ATMI Inc., sized at 0.22% of his portfolio, and 3.75% of the company. It has a market cap of $1.08 billion; its shares are trading at $34.04 with a P/E ratio of 28.6 and P/S ratio of 2.77.

ATMI supplies high performance materials, materials packaging and materials delivery systems for use in the manufacture of microelectronics devices worldwide. ATMI agreed to be acquired by Entegris (ENTG) for $1.15 billion, or $34 per share. The deal will provide a lot more of product offerings. The acquisition is expected to close during the second calendar quarter of 2014.

Hedge fund gurus have also been active in the company. Jim Simons (Trades, Portfolio), Arnold Schneider (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have divested in it in the last quarter.

Nobility Homes Inc. (NOBH)

Finally, Gabelli reported owning 234.950 shares of Nobility Homes, sized at 5.97% of the company’s shares outstanding and 0.01% of Gabelli’s portfolio. The company has a market cap of $44.63 million, with a P/E of 59.6 and P/S of 2.41.

The firm designs, manufactures and sells a line of manufactured and modular homes in Florida. Like most other builders in the U.S. market, the company had difficulties in the past years. However, it has a strong financial position, with no debt in its balance sheet, which we think is a good way to face the probable next scenario of rising interest rates.

Final Comment

I always like to see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the return on equity. Let´s compare each company with the industry mean in the next table:

Ticker

ROE (%)

Industry Mean (%)

PATH

-814

-24

ATMI

8,3

2,2

NOBH

2,1

4,2

As we can see, ATMI has a higher ROE than its peers, which is considered good. On the other hand, Nobility has a weak ROE, but it is still positive and is really amazing compared to NuPathe's negative ROE.

Disclosure: Vanina Egea holds no position in any stocks mentioned.




Guru Discussed: Mario Gabelli: Current Portfolio, Stock Picks
Stocks Discussed: PATH, ATMI, NOBH, TEVA, ENTG,
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