10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Gurus Buy Micro Caps – Bamboo Toilet Paper

Sally Jones

Sally Jones

49 followers
“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.

1374700305893.png

Gabelli’s other micro cap activity was an increase in his position in the medical devices company Cutera Inc. (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.

1374700349295.png



Diamond Hill Capital - PACR, CXPO, BMRC

Diamond Hill Capital bought a new micro cap holding, Pacer International Inc. (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%.

1374700158074.png

Another micro cap buy for Diamond Hill Capital is Crimson Exploration Inc. (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.

1374700414689.png

Diamond Hill Capital also bought a new holding in Bank of Marin Bancorp (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.

1374700495137.png

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.

1374700754634.png

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.

1374701380498.png

Check out the GuruFocus Sector Picks feature.

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.0/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK