“Think small” is something the wise ones almost never tell us. But sometimes, the biggest returns can come from smaller companies with an innovation, like bamboo paper products. This summer, the billionaire Guru investors are all over micro-cap companies, defined as companies with a market cap of $0 to $300 million. Here are some recent discoveries, found with the GuruFocus Sector Picks feature:
Mario Gabelli – NOBH, CUTR
Mario Gabelli of GAMCO Investors bought this new holding in residential construction for 202,198 shares in the average price range of $8 per share as of July 18, 2013.
Nobility Homes Inc. (NOBH) has a market cap of $32.5 million. Up 89% since January, the company shares trade at around $9.00 with a P/E of 1285.80 and a P/S of 2.30.
He sold out his NOBH holding in the first quarter of 2013, making a 75.4% gain on 193,273 shares sold at $5.13.
Gabelli’s other micro cap activity was an increase in his position in the medical devices company Cutera Inc. (NASDAQ:CUTR) by 11.3%. He currently holds 640,000 shares after the July 1, 2013 trade.
Cutera is up 35% over 12 months, with a market cap of $138.9 million. Shares trade at around $9.45 with a P/B of 1.50 and a P/S of 1.80.
Diamond Hill Capital - PACR, CXPO, BMRC
Diamond Hill Capital bought a new micro cap holding, Pacer International Inc. (NASDAQ:PACR) as of June 30, 2013. Up 30% over 12 months, Pacer International is a shipping and logistics company with a market cap of $223.9 million. Shares trade at around $6.18 with a P/E of 36.00 and a P/S of 0.20.
Diamond Hill Capital also bought 388,377 PACR shares at an average price of $5.85 per share for a gain of 5.6%. The current share price is $6.18 with a change from average up 6%.
Another micro cap buy for Diamond Hill Capital is Crimson Exploration Inc. (NASDAQ:CXPO) for 607,379 shares bought at $2.99 for a gain of 8.7%, as of June 30, 2013. CXPO is down 16% over 12 months.
Diamond Hill Capital also bought a new holding in Bank of Marin Bancorp (NASDAQ:BMRC) for 6,695 shares at an average price of $39.35, making a gain of 7.2%. BMRC is up 14% over 12 months.
Ken Fisher - CVY, GNIN
Ken Fisher of Fisher Asset Management LLC bought a new holding, Claymore/Zacks Multi-Asset Inc. IDX (CVY), an ETF, for 10,200 shares at an average price of $23.93, quarter ending June 30, 2013. CVY is up 13% over 12 months.
Fisher’s other new micro cap holding is Green Innovations Ltd. (GNIN) for 21,080 shares at an average price of $0.66, with a loss of 59.1%. The current share price is $0.27.
Up 143% over 12 months, Green Innovations has a market cap of $8.8 million and trades with a P/S of 22.50 and a P/B of 17.90. The company features a bamboo-based product line, including personal care and paper-based goods.
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