As reported by GuruFocus Real Time Picks, Guru Mario Gabelli increased his position in one company and bought into a new company. This brings the total stocks owned by Gabelli to 800. As of the close of the second quarter, Gabelli’s portfolio was valued at over $15 billion.
Superior Industries International (SUP)
Gabelli increased his holdings in Superior Industries International as reported on Aug. 2. The guru added 233,781 shares to his holdings representing a 12.92% increase. Gabelli purchased these shares at an average price of $18.53 per share. He now holds on to 2,030,489 shares of Superior Industries, representing 7.43% of the company’s shares outstanding.
The guru has held a position in the company since fourth quarter 2008, and he added 38,000 shares to his holdings in the company during the last quarter. Gabelli’s holding history of SUP as of the close of the second quarter:
Superior Industries is the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America. Major customers of Superior include Ford, General Motors, Chrysler, BMW, Misubishi, Nissan, Subaru, Toyota and Volkswagen.
Superior Industries’ historical revenue and net income:
The company recently released its second quarter results which highlighted:
· Net income of $6.3 million, or $0.23 per share, compared to $6.4 million and $0.23 per share during the second quarter 2012.
· Consolidated net sales decreased 7% to $199.0 million.
· Unit shipments decreased 12% to 2.9 million.
· Gross profit increased to $16.2 million.
The Peter Lynch Chart shows that the company is currently overvalued:
Superior Industries International has a market cap of $505.1 million. Its shares are currently trading at around $18.67 with a P/E ratio of 17.60, a P/S ratio of 0.60 and a P/B ratio of 1.00. The company also offers a dividend yield of 4.30%.
Steel Excel (SXCL)
Also reported on Aug. 2 was Gabelli’s initial purchase into Steel Excel. The guru bought 848,797 shares at an average price of $29.25. Mario Gabelli previously held on to SXCL but sold out of the company in 2010. His most recent purchase gives him possession of 6.59% of the company’s shares outstanding.
Steel Excel operates through two business segments: Steel Energy and Steel Sports. Steel Energy provides well servicing, workover and other services to the gas and oil industry. Steel Sports is a network of branded participatory and experience-based businesses engaged in sports, training, entertainment and consumer lifestyles.
Steel Excel’s historical price:
Steel Excel’s historical revenue and net income:
The company has recently announced their investment and expansion to the UK by investing in UK Elite Soccer. This investment allows the company to enter the highly popular youth soccer market in England. Even more recently, Steel Excel has announced their its intent to acquire interest in iGO, a mobile electronic accessories company. Steel Excel will purchase at least 30% and up to 44% of iGO’s common stock.
The Peter Lynch Chart shows that Steel Excel appears to be undervalued:
Steel Excel has a market cap of $374.095 million. Its shares are currently trading at around $29.25 with a P/E ratio of 14.50, a P/S ratio of 3.30 and a P/B ratio of 0.90.