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Real Time Picks of Chuck Royce: UTI, JJSF, DW, WGO

April 05, 2011 | About:
Holly LaFon

Holly LaFon

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On April 5, Royce Funds filed four 13Gs reporting that they acquired shares of Universal Technical Institute Inc. (UTI), J & J Snack Foods Corp. (JJSF), and two companies that deal in recreational vehicles: Drew Industries Inc. (DW) and Winnebago Industries Inc. (WGO). Guru Chuck Royce is the co-chief investment officer and portfolio manager of New York-based Royce & Associates, LLC. Royce added .94% of Universal Technical Institute Inc. at the average price of $19.69 and now has 2,257,029 shares. Universal Technical Institute Inc. provides technical education training in automotive, diesel, collision repair and refinishing, motorcycle, marine and personal watercraft technologies. Universal Technical Institute Inc. has a market cap of $479.6 million; its shares were traded at around $19.69 with a P/E ratio of 16.3 and P/S ratio of 1.1.

During the first quarter of fiscal 2011, Universal Technical Institute had record earnings per share and increased revenues by 13 percent. In that same quarter, student enrollment declined 13%.

Royce increased his stake in J&J Snack Foods Corp. by 11.07% at an average price of $48.24. He now owns 1,871,623 shares. J & J Snack Foods Corp. manufactures nutritional snack foods which it markets nationally to the food service and retail supermarket industries. J & J Snack Foods Corp. has a market cap of $895.9 million; its shares were traded at around $48.24 with a P/E ratio of 18.6 and P/S ratio of 1.3. The dividend yield of J & J Snack Foods Corp. stocks is 1%. J & J Snack Foods Corp. had an annual average earnings growth of 23.9% over the past 10 years. GuruFocus rated J & J Snack Foods Corp. the business predictability rank of 3-star. J&J has had 20% revenue growth per share in the last 10 years.

He added 10.89% of his current ownership in Drew Industries Inc. at the average price of $23.22. He now owns 1,871,623 shares.

Drew Industries Inc. has two reportable operating segments: the manufactured housing products segment and the recreational vehicle products segment. Drew Industries Inc. has a market cap of $512.4 million; its shares were traded at around $23.22 with a P/E ratio of 18.9 and P/S ratio of 0.9.

Revenue for Drew Industries has increased 32% in the last 12 months. Both Gurus Richard Pzena and George Soros sold out of the stock. The stock is also in the portfolio of Ruane Cunniff and Mario Gabelli.

He added 3.5% of Winnebago Industries Inc. stock at the average price of $13.33, increasing his ownership to 2,949,775 shares.

Winnebago Industries Inc. is a U.S. manufacturer of motor homes, self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. Winnebago Industries Inc. has a market cap of $388.1 million; its shares were traded at around $13.33 with a P/E ratio of 22.2 and P/S ratio of 0.9.

The global recession and fuel prices hit the RV industry hard in recent years. In 2008, shipments of motor homes dropped 49% from the average of the 20 years prior to 2008. Shipments dropped again in 2009 an additional 53% to the lowest level on record. However, the industry improved slightly with a 91.7% increase in wholesale shipments from 2009 to 2010. Analysts predict that shipments will rise another 6% due to improvement in wholesale and retail credit availability, as well as a balancing of dealer inventory levels with retail demand.

For the latest stock trades by Gurus, go to: Real Time Picks.


Rating: 2.3/5 (7 votes)

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