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Mario Gabelli's Second Quarter Portfolio Update

August 02, 2013 | About:
Monica Wolfe

Monica Wolfe

127 followers
Mario Gabelli is the founder, chairman and CEO of Gabelli Asset Management Company Investors (GAMCO Investors). GAMCO Investors is best known for its research-driven, value-oriented equity investing expertise which is based on the principles of Graham & Dodd — that is, investing in undervalued companies that have a high probability of achieving their intrinsic or private value over time. As of the second quarter, Mario Gabelli holds 799 stocks valued at nearly $16 billion.



The following companies represent the stocks of which Mario Gabelli made the largest change in holdings.

Increases

Life Technologies Corp. (LIFE)

During the second quarter Gabelli made his largest increase in Life Technologies. The guru upped his stake 3187.35% by purchasing 1,271,624 shares. Gabelli bought these shares at an average price of $72.60 per share. Since his most recent addition, the price per share has increased approximately 3% from the average purchase price.

Gabelli currently holds 1,311,520 shares of Life Technologies, representing 0.77% of the company’s shares outstanding and 0.61% of his total portfolio. Gabelli’s holding history in Life Technologies:



Life Technologies is a global biotechnology company that is committed to providing the most innovative products and services to leading customers in the fields of scientific research, genetic analysis and applied sciences.

Life Technologies’ historical price, revenue and net income:

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The company recently released its second quarter financials which reported:

· Revenue of $944 million, a decrease of 1% from the second quarter 2012.

· GAAP earnings per share were $0.72, or $0.98 on a non-GAAP basis

· Free Cash Flow of $196 million.

· The company has bought back approximately 5 million shares since the second quarter 2012.

The Peter Lynch Chart shows that Life Technologies appears to be overvalued:

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Life Technologies has a market cap of $12.88 billion. Its shares are currently being traded at around $74.78 with a P/E ratio of 31.60, a P/S ratio of 3.50 and a P/B ratio of 2.70. The company has seen an annual average earnings growth of 25.9% over the past ten years.

There are currently
15 gurus that hold a position in Life Technologies. Click here to see their holding histories.

Ameristar Casinos (ASCA)

Gabelli made his first increase in his holdings in Ameristar Casinos during the second quarter. The guru purchased 308,000 shares of Ameristar, representing a 616% increase in his holdings. Gabelli purchased these shares at an average price of $26.32 per share. Since this increase the share price is trading up 0.5%.

Gabelli now holds on to 358,000 shares of Ameristar, representing 1.09% of the company’s shares outstanding and 0.059% of his total portfolio. Gabelli’s holding history of Ameristar Casinos:



Ameristar Casinos is a casino gaming company featuring the newest and most popular slot machines. The company maintains eight casino hotel properties which generate more than $1 billion in net revenues annually.

Ameristar Casinos’ historical price, revenue and net income:

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The company’s second quarter financials reported:

· Adjusted EBITDA increased $1.7 million (1.9%) YOY to $91.9 million.

· Net revenues decreased $5.0 million (-1.7%) YOY to $291.3 million.

· Record 2Q adjusted EBITDA margin of 31.5%.

· Adjusted EPS of $0.60.

· Pending merger with Pinnacle Entertainment expected to close in Aug. 2013.

The Peter Lynch Chart shows that Ameristar Casinos currently appears to be overvalued:

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Ameristar Casinos has a market cap of $874.8 million. Its shares are currently being traded at around $26.46 with a P/E ratio of 17.00 and a P/S ratio of 0.80.

There are currently
six gurus that hold a position in ASCA. Click here to see their holding histories.

Stewart Enterprises (STEI)

During the second quarter, Gabelli increased his position in Stewart Enterprises by 568.18%. The guru purchased a total of 1,602,263 shares at an average price of $10.42 per share. The price per share has increased approximately 26.3% from Gabelli’s average purchase price.

Gabelli now owns a total of 1,884,263 shares of Stewart Enterprises, representing 2.21% of the company’s shares outstanding and 0.16% of his total portfolio. Gabelli’s holding history of Stewart Enterprises:



Stewart Enterprises is the second largest provider of products and services in the death care industry in the U.S., currently owning and operating 217 funeral homes and 141 cemeteries. Through its subsidiaries, the company provides a full range of funeral and cremation merchandise and services, along with cemetery property, merchandise and services.

Stewart Enterprises’ historical price, revenue and net income:

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Stewart Enterprises’ second quarter financials reported:

· Earnings from continuing operations were $11.9 million, compared to $9.6 million of last year.

· Adjusted diluted EPS of $0.19.

· Entered into a merger agreement with Service Corporation International

On May 29, 2013, the Company announced that it has entered into a definitive merger agreement with SCI. Pursuant to the agreement, holders of the Company’s Class A and Class B common stock will receive $13.25 in cash for each share of common stock they hold.

Stewart Enterprises has a market cap of $1.13 billion. Its shares are currently trading at around $13.16 with a P/E ratio of 24.20, a P/S ratio of 2.10 and a P/B ratio of 2.50. The company has seen an average annual average earnings growth of 5% over the past ten years.

There are four gurus that hold a position in Stewart Enterprises. Click here to see their holding histories.

Reductions

Emerson Electric (EMR)

During the second quarter, Gabelli made a significant decrease in his holdings in Emerson Electric. The guru reduced his position -77.05% by selling a total of 60,024 shares. Gabelli sold these shares at an average price of $56.23 per share. Since his sell the price per share has increased an additional 10.02%. Gabelli now holds on to 50,932 shares of Emerson Electric.



Emerson Electric brings technology and engineering together to provide solutions for customers in the industrial, commercial and consumer markets around the world. The company operates out of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies and Commercial & Residential Solutions.

Emerson Electric’s historical price, revenue and net income:

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The company is set to release their third quarter financial results on Aug. 6.

Emerson Electric is currently trading at a 10-year high in price.

According to the Peter Lynch Chart, Emerson Electric appears to be overvalued:

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Emerson Electric has a market cap of $43.71 billion. Its shares are currently trading at around $61.98 with a P/E ratio of 21.90, a P/S ratio of 1.80 and a P/B ratio of 4.20. The company has seen an annual average earnings growth of 8% over the past ten years.

GuruFocus rated Emerson Electric the
business predictability rank of 2.5-star.

There are currently 21 gurus that maintain positions in Emerson Electric. Click here to see their holding histories.

Hewlett-Packard (HPQ)

During the second quarter, Mario Gabelli cut his holdings in Hewlett-Packard (HP) by -68.66%. The guru sold a total of 12,500 shares at an average price of $22.48 per share. Since his sell the price has jumped 19.2%. Gabelli now holds on to 10,500 shares of HP.

Gabelli’s holding history of HP:



HP is the world’s largest technology company that brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems.

HP’s historical price, revenue and net income:

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The company’s second quarter financials reported:

· Non-GAAP diluted EPS of $0.87, down 11% from the prior year

· GAAP diluted EPS of $0.55, down 31% from last year

· Net revenue of $27.6 billion, down 10% from last year.

· Cash flow from operations of $3.6 billion, up 44% from last year.

· Returned $1.1 billion in cash to share holders in dividends and share buybacks.

Hewlett-Packard has a market cap of $50.6 billion. Its shares are currently traded at around $26.80 with a P/E ratio of 5.80, a P/S ratio of 0.40 and a P/B ratio of 2.10.

There are currently 29 gurus[/url] that maintain a position in HP. Click here to see their holding histories.

Barnes & Noble (BKS)

Over the course of the second quarter Mario Gabelli reduced his position in Barnes & Noble by -59.31%. The guru sold a total of 48,125 shares at an average price of $19.17 per share. The price per share has dropped -6.2% from his average sell price. Gabelli still maintains 105,100 shares of Barnes & Noble, representing 0.18% of the company’s shares outstanding.

Gabelli’s holding history of Barnes & Noble:



Barnes & Noble is the world’s largest bookseller and America’s highest-rated bookselling brand. The company is also a leading content, commerce and technology company that provides customers easy access to books, magazine, newspapers across its multi-channel distribution platform.

Barnes & Noble’s historical price, revenue and net income:

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The company released their Fiscal 2013 Year-End financial results in June which reported:

· EBITDA increased 16% to $374 million.

· College book sales generated EBITDA of $111 million.

· Revenue declined 4.1% to $6.8 billion from 2012.

· Cash of $160.5 million and borrowings of $77 million.

Barnes & Noble has a market cap of $1.07 billion. Its shares are currently trading at around $17.90 with a P/S ratio of 0.20 and a P/B ratio of 1.60.

You can view Mario Gabelli’s current portfolio here.

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