Columbia Wanger's May Portfolio Update
Blackhawk Network Holdings (HAWK)
The Columbia Wanger Asset Management team bought into Blackhawk Network Holdings at the end of last month. The asset management fund bought 1,576,906 shares at an average price of $23.82 per share. This buy represents a 0.18% impact to Columbia Wanger’s portfolio.
Since the funds buy, the price per share has increased approximately 12% and is currently trading around $27.16 per share.
Blackhawk is a newly incorporated company that provides prepaid and financial payments for consumers and businesses. The company’s Gift Card Mall offers the industry’s most popular prepaid gift card, telecom and financial service brands. Gift Card Mall has access to 160 million customer visits each week and is available through a network of grocery stores, big box, convenience, pharmacy, specialty stores and Internet retailers.
The company’s first quarter financial report stated:
· Operating revenues totaled $185.1 million, an increase of 22.1% from $151.5 million for the same quarter 2012.
· Net income totaled $0.3 million compared to $2.9 million for the same quarter 2012. The change was due primarily to an increase in distribution partner commissions paid as a percentage of commissions and fees, increased marketing expenses net of marketing revenues and increased distribution partner program development expenses.
· Earnings per basic and diluted share was $0.01 compared to $0.06 for the first quarter 2012.
Blackhawk Network has a market cap of $1.32 billion; its shares were traded at around $26.67 with a P/S ratio of 1.30.
Columbia Wanger is the first guru to buy Blackhawk Network.
Pinnacle Entertainment (PNK)
Columbia Wanger decreased their holdings in Pinnacle Entertainment 50.78% at the end of last month. Columbia Wanger sold a total of 3,021,030 shares of Pinnacle at an average price of $19.68 per share. The asset managers currently hold on to 2,927,970 shares of the company’s stock, representing 5.02% of the company’s shares outstanding. Since the fund’s sell, Pinnacle Entertainment’s price per share has dropped approximately 4%.
Columbia Wanger’s holding history of Pinnacle:
Pinnacle Entertainment is an owner, operator and developer of casinos and related hospitality and entertainment facilities. It operates casino properties, all of which include gaming and dining facilities, and some of which include hotel, retail and other amenities. In addition, it operates one racetrack.
Recent Happenings at Pinnacle:
On June 6, the Iowa Racing and Gaming Commission approved the acquisition of Ameristar Casinos by Pinnacle Entertainment.
Prior to this approval, the Federal Trade Commission filed a complaint on May 29 aimed at stopping Pinnacle Entertainment from buying rival Ameristar Casinos because the merger would reduce competition and lead to higher prices for customers in St. Louis, Mo. and Lake Charles, La.
In its complaint, the FTC said the deal's value was $2.8 billion because Pinnacle will pay $869 million for Ameristar's outstanding stock and assume $1.9 billion in debt.
Pinnacle Entertainment has a market cap of $1.1 billion; its shares were traded at around $18.98 with a P/E ratio of 32.30 and a P/S ratio of 0.90.
The analysis on the company reports:
· The price is near a five-year high of $20.74.
· The company has issued $320.128 million of debt in the past three years.
· The P/E ratio is close to a one-year high of 35.40.
· The P/S ratio is close to a five-year high of 1.03.
The company’s Peter Lynch Valuation Chart:
There are six gurus that hold a stake in Pinnacle Entertainment. You can view their holding histories here.
You can view Columbia Wanger’s current portfolio here. Also check out their undervalued stocks, high growth companies and top yielding stocks.