According to GuruFocus Real Time Picks, GAMCO Investors’ Chairman and CEO Mario Gabelli is actively trading this week, making three significant increases to his recently updated portfolio of 792 stocks, 41 of them new, with a total value of $13.6 billion, and a quarter-over-quarter turnover of 6%.
Booming Oil Patch Loves LUFK – Major Gains
Over the past five years, Gabelli has made enormous gains with Lufkin Industries (LUFK), the industrial manufacturer of equipment for oil fields and power transmission systems. His run with LUFK shows an average cost per share of $9, for a gain of 878%, according to GuruFocus research that traces Gabelli’s buying and selling all the way back to fourth quarter 2008 when the Guru first bought at $22.55 for a gain of 290.3%.
On April 8, 2013, Mario Gabelli again increased his position with Lufkin Industries (LUFK) by 132.8%, trading at an average price of $87.96 per share.
The current share price is $88.18, with a 0% change from average. The stock is up 53% year to date, with oil the release of new and improved pumping units and high-speed gear boxes.
After his last trade, Gabelli holds 1,351,883 shares, a stake of approximately $120 million, and 4.01% of shares outstanding.
His holding history:
Lufkin Industries is a vertically integrated supplier of oilfield and power transmission products. Lufkin has created a niche by integrating its products, services and automation in the oil patch with engineering and customer service support in the specialty market of high-speed gear manufacturing.
Lufkin’s sales are supported by the ongoing U.S. crude oil boom that is expected to produce 815,000 barrels per day in 2013, the highest annual output in over 150 years. Lufkin Industries reported fourth quarter and full year 2012 earnings with 2012 revenues at a record of $1.3 billion, new business bookings also at a new record of $1.3 billion, and a year-end backlog of $324 million, up 19% year over year.
The company has a market cap of $2.89 billion, and a P/E of 35.9. The P/S is 2.2915.
Superior Industries International (SUP) is feeling the pinch of foreign exchange rates as well as decreases in unit shipments and in its average selling price, also suffering from pass-through price of aluminum, the main raw material of the road wheel maker. The company’s net income for 2012 was $30.89 million, compared to $67.17 million in 2011, according to GuruFocus research.
As of April 17, 2013, Mario Gabelli added for the second time last week to his position with Superior Industries International (SUP) by 0.35%, trading in the price range of $17.77, with a change from average down 3%.
This latest add brings Guru Gabelli’s total shares of a top supplier of cast aluminum wheels to 1,765,708, a stake of around $30.3 milllion.
When Gabelli first bought into the company in the fourth quarter of 2008, the stock sold at an average price of $12.26. In 2012 Guru Gabelli increased in every quarter, and now has current 6.58% of shares outstanding, surpassed by the new largest stakeholder Third Management Avenue with 7.71%.
The current SUP share price is $17.16, down 17% year to date.
Superior Industries International has a market cap of $485.35 million, and a P/E of 15.1. The P/S is 0.6.
Gabelli’s SUP holding history:
The clock is ticking as Valeant Pharmaceuticals waits to hear if skin care company Obagi Medical Products Inc. (OMPI) has accepted its buyout offer. About 10 days ago, Valeant Pharmaceuticals increased its offer to buy out Obagi from $19.75 per share to $24 per share, after being bumped by a German offer from Merz Pharma GmbH.
Obagi Medical Products Inc. is a biotechnology-based pharmaceutical company that makes skin care products to treat common adult skin problems like sun damage and wrinkles.
Valeant pursued Obagi for its product reputation among dermatologists and plastic surgeons worldwide. Obaji sells in 43 countries.
According to Morningstar, this sale could add about 10 cents per share to Valeant’s 2014 earnings estimate.
On April 16, 2013 GAMCO Investors’ Mario Gabelli again increased his position with the skin care company, Obagi Medical Products Inc. (OMPI), by 12.96%, trading at an average price of $23.96 per share.
The current share price is $23.96, with a 0% change from average. The stock is up 91% over the last 12 months, with the release of new products and systems to the worldwide baby boomer sector.
After his last trade, Gabelli holds 1,235,584 shares, a stake of approximately $29.6 million, and 7.09% of shares outstanding.
Here’s a look at how the company’s revenue has grown over 10 years.
Obagi Medical Products Inc. 10-Year History of Revenue
In 2012 Obagi’s net income was $16.6 million, compared to $10.02 million in 2011.
Mario Gabelli’s other top buys, sells and holdings:
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