Mario Gabelli's Top 5 New Second Quarter Buys
According to his second quarter portfolio released today, Gabelli’s top new picks for his fund are: NV Energy Inc. (NVE), ExactTarget Inc. (ET), Buckeye Technologies Inc. (BKI), CST Brands Inc. (CST) and Smithfield Foods Inc. (SFD).
When asked what his most important screens are for screening stocks, Gabelli said on a CNBC interview How much can they earn in the upside of the cycle, and what money can they earn, and is there a risk of having a financial challenge on the downside… We like a good business ideally and we basically like a good manager.” He added later that he likes companies “with good cash flow that are buying back stock.”
Here are the latest numbers on Gabelli’s new second quarter buys.
NV Energy (NVE)
For Gabelli’s largest purchase of the quarter, he acquired 1,512,700 shares of NV Energy Inc. at $22 per share on average, a 0.22% weight of his portfolio. The price gained 9% since then to trade for $23.70 Thursday.
NV Energy Inc. is an investor-owned holding company that was incorporated under Nevada law on Dec. 12, 1983. NV Energy Inc. has a market cap of $5.58 billion; its shares were traded at around $23.69 with a P/E ratio of 17.00 and P/S ratio of 1.90. The dividend yield of NV Energy Inc. stocks is 3.00%. NV Energy Inc. had an annual average earnings growth of 1.8% over the past 10 years.
NV Energy’s historical revenue and earnings:
The Peter Lynch suggests this stock is overvalued:
ExactTarget Inc. (ET)
Gabelli bought 1,043,868 shares of ExactTarget Inc. for $25 per share in the second quarter. The stock already gained 35% and trades for $33.75 per share Thursday. The holding is also 0.22% of the portfolio.
ExactTarget Inc. is a Delaware Corporation. The company is a global provider of cross-channel, interactive marketing SaaS solutions that empower organizations of all sizes to communicate with their customers through the interactive channels they use: email, mobile, social media and websites. ExactTarget Inc. has a market cap of $2.35 billion; its shares were traded at around $33.75 with and P/S ratio of 7.17.
Buckeye Technologies Inc. (BKI)
Gabelli purchased 450,172 shares of Buckeye Technologies Inc. for $35 per share, a 0.1% portfolio weight. It is 6% higher on Thursday, at $37.31 per share.
Buckeye Technologies Inc. was incorporated in Delaware. Buckeye Technologies Inc. has a market cap of $1.48 billion; its shares were traded at around $37.31 with a P/E ratio of 14.70 and P/S ratio of 1.80. The dividend yield of Buckeye Technologies Inc. stocks is 0.90%. Buckeye Technologies Inc. had an annual average earnings growth of 14.1% over the past 10 years. GuruFocus rated Buckeye Technologies Inc. the business predictability rank of 3.5-star.
Buckeye Technologies’ historical revenue and net income:
The Peter Lynch chart suggests the company is about fairly valued:
CST Brands Inc. (CST)
Gabelli purchased 307,000 shares of CST Brands for $31 per share, or a 0.059% portfolio weight. The price Thursday is $32.82, 5% higher.
CST Brands Inc. is an independent North America retailer of motor fuel and convenience merchandise and services. It has a market cap of $2.03 billion; its shares were traded at around $32.82.
CST Brands’ price history:
Smithfield Foods Inc. (SFD)
Gabelli purchased 232,587 shares of Smithfield Foods for $28 on average, a 0.048% portfolio weight. Shares since increased 18% to $33.30 each Thursday.
Smithfield Foods Inc. was incorporated in Virginia. Smithfield Foods Inc. has a market cap of $4.63 billion; its shares were traded at around $33.30 with a P/E ratio of 26.40 and P/S ratio of 0.40. Smithfield Foods Inc. had an annual average earnings growth of 93.9% over the past five years.
Smithfield Foods’ historical revenue and net income:
The Peter Lynch chart is indicating the stock is overvalued:
See Mario Gabelli’s updated portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Mario Gabelli.