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FPA Capital Increases in Veeco by 24% - Q4 Update

Guru Robert Rodriguez’s mutual fund, FPA Capital, has recently submitted its portfolio updates for 2012’s fourth quarter consisting of one stake increase and five stake reductions.

The five stake reductions were in the following companies: Trinity Industries (TRN), Signet Jewelers (SIG), Federated Investors (FII) Ensco (ESV) and Atwood Oceanics (ATW).

As the only stock Rodriguez added to in the fourth quarter, process equipment solutions company Veeco Inc. has been in the fund’s portfolio since the third quarter of 2011, starting off with 225,000 shares. Today, FPA Capital sits with 420,500 shares.

Veeco is engaged in providing process equipment solutions to enable the manufacturing of LEDs, power electronics, hard drives and wireless chips. Its stock is currently up 1.91 percent this afternoon, trading at $30.92. GuruFocus ranks the company 9 in Financial Strength and 7 in Profitability and Growth.

In its latest fiscal results for its third quarter, Veeco revealed that it generated $46 million in cash flow from operations, and that its revenue of $127 million for the quarter was in line with its expectations.

For the entire 2012 year, Veeco forecasts that its revenue will be over $500 million, delivering double-digit profitability growth.

According to its 10-Year Financials, Veeco has had a 10-year revenue growth rate of 5.5 percent. Its free cash flow growth in five years is 29.8 percent.

Veeco’s market value delivered 31.29 percent in the last year, but declined 6.88 percent in the last three years.

1358537069820.pngVECO data by GuruFocus.com

Currently, Rodriguez maintains 25 stocks in his portfolio, valued over $830 million.

His top holdings Rowan Companies (RDC), Ensco PLC (ESV), Western Digital Corp. (WDC), Rosetta Resources (ROSE) and Arrow Electronics (ARW).

To see more of his buys and sells, see his portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Robert Rodriguez.

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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


Rating: 3.7/5 (3 votes)

Comments

vgm
Vgm - 1 year ago
Diane,

According to Rodriguez's Quarterly, dated Sept 30 2012, he DECREASED Veeco:



"We reduced Veeco Instruments (VECO) in the mid-to-high $30s because it approached fair valuation and our channel checks suggested that the metal organic chemical vapor deposition market, used to produce high-brightness LEDs, will remain under pressure for a while longer. We trimmed the position before the stock slid over 20% from its 52-week high."

Which report are you referring to?

cubsfan
Cubsfan premium member - 1 year ago
Dataroma also shows he sold 50% of the shares in Q3, then added them back in Q4.

http://www.dataroma.com/m/hist/hist.php?f=FPPTX&s=VECO
Dianne Tordillo
Dianne Tordillo - 1 year ago
That's right.

This update is in regards to the fourth quarter. In the third quarter 2012, he eliminated 126,200 shares. When his 4th quarter update came in, he added 81,800 shares to his Veeco stake.

Here is the link to his latest trades:

http://www.gurufocus.com/StockBuy.php?GuruName=Robert+Rodriguez
vgm
Vgm - 1 year ago
Interesting. This says alot about his high regard for the company. Worthy of some DD.

Thanks Cubsfan and Dianne.
gurufocus
Gurufocus premium member - 1 year ago
This is the holding history:

Please leave your comment:


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