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Gabelli Grows Shareholdings - KNXA and WMCO

November 29, 2012 | About:
As of Nov. 28, billionaire Guru investor, Mario Gabelli reported to increasing his stake in two stocks: Kenexa Corp. (KNXA) and Williams Controls Inc. (WMCO), according to GuruFocus Real Time Picks. The recent purchases place Gabelli’s ownership to 4.79 percent of Kenexa and 5.51 percent of Williams Controls.

Kenexa Corp. (KNXA)

Gabelli’s recent Kenexa stake increase represents his third time doing so since reporting the company as a new buy in the quarter ending Sept. 30.

Starting off with 483,994 shares, purchased at an average price of $33.75, Gabelli has increased his holding to more than 1.3 million shares, as the stock rose to an average of $45 per share within a two-month time frame.

With a market cap of $1.27 billion, Kenexa is a global provider of talent management and talent acquisition solutions, catering to the worlds of business and human resources.

In the third quarter, Kenexa reported a 19.2 percent increase in non-GAAP revenue compared to last year’s number, which excludes deferred revenue from acquisitions, which amounted to $96.9 million. Kenexa made $63.9 million in cash, cash equivalents and investments in the third quarter, which is about $25 million less than what the company made in the prior quarter.

The company also used $27.5 million to repay debt.

Last week, Kenexa announced it would reschedule a meeting, which would have discussed court decisions about the complaint filed against the company in October. (Read more about the investigation here.)

The complaint was in relation to International Business Machines Corp. (IBM) and the company’s acquisition of Kenexa, which will make Kenexa a surviving corporation and wholly owned IBM subsidiary.

Currently, Kenexa faces one Severe Warning sign and four Medium Warning signs on GuruFocus, indicating a price close to a 10-year high, and a low Piotroski F-Score. Its P/E, P/B and P/S ratios are all experiencing highs.

View Kenexa’s 10-Year Financials here.



Williams Controls Inc. (WMCO)


Since reporting Williams Controls as a new buy on Nov. 1, Gabelli has added to his stake twice, making his current holding of the company a total of 413,300 shares.

With a market cap of $113.4 million, Oregon-based Williams Controls manufactures electronic systems for heavy truck, bus and off-road markets. The company offers its services globally, spanning beyond North America to locations in Europe and Asia.

In its third quarter fiscal report, Williams Controls announced year-over-year decreases in net sales and net income due to weakness in sales in its European and Asian markets.

“Although we are seeing some economic weakness and uncertainty in several of our world-wide markets, our market position remains strong and we are in an excellent position when those markets strengthen,” Williams Controls president and CEO, Patrick Cavanagh, said in the release.

Currently trading at $15.37, Williams Controls has a dividend yield of 3.1, and a dividend payout ratio of 0.98. The company’s latest payout amounted to $0.12 per share to all stockholders, dispersed on Aug. 28.

With one star in Business Predictability, Williams Controls is ranked 9 out of 10 in Financial Strength and 5 out of 10 in Profitability and Growth.

View Williams Controls’ 10-Year Financials here.

To view Gabelli’s latest trades, visit Mario Gabelli’s stock picks. Also view his top holdings, his undervalued stocks and his top yield stocks

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


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