|New Threads Only:|
|New Threads & Replies:|
Forum List » Value Ideas and Strategies|
Share and discuss value investing ideas and investing strategies.
Michael Dell Ups Stake in School Specialty Inc
Posted by: guruhl (IP Logged)
Date: June 27, 2012 06:17PM
Michael Dell increased his holding of School Specialty Inc. (SCHS) by 53% last week at an average price of $2.82 per share, according to GuruFocus Real Time Picks. Dell, founder and CEO of DELL Inc. (DELL), the computer company, owns 2,884,499 shares after the purchase.
School Specialty Inc. (SCHS) is a producer and supplier of products for the educational market. In the last year, the company’s stock price dropped 78.4% as earnings shriveled. School Specialty posted net losses in the last two quarters. It also saw three quarters of revenue declines from the July to January quarters, though revenue increased from $85.3 million in the January quarter to $119 million in the April quarter.
The company had been suffering from a weak economy in the education sector. In its fiscal 2012 third quarter, School Specialty’s president and CEO Michael P. Lavelle attributed weak results to “postponed state adoptions and uncertainty in the marketplace related to school budgets and changes in core standards.”
Lavelle echoed similar impacts to earnings in the fourth quarter’s results: “ongoing delays in curriculum purchase as school districts held off buying related to common core standards and pending assessments.”
At the start of the upcoming fiscal year, the company expects an uneven recovery to begin as state and local budgets stabilize and grow, and has completed a debt refinancing of $270 million to position itself to take advantage of potential growth initiatives to turn business around.
Dell has owned shares of School Specialty, his smallest holding, since before 2007. Dell’s largesting holdings are DineEquity (DIN), Wright Express Corp. (WXS) and Macquarie Infrastructure Company LLC (MIC).
GuruFocus Real Time Picks alerts you with the stock purchases and sales that Gurus have made within the last two days. Follow your favorite Gurus closely with GuruFocus' Premium Membership! If you are not a Premium Member, try a 7-Day Free Trial.
Guru Discussed: Michael Dell: Current Portfolio, Stock Picks
Stocks Discussed: SCHS, DIN, WXS, MIC,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.