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Guru Robert Olstein's Active Second Quarter

August 10, 2013 | About:
Sally Jones

Sally Jones

49 followers
Investor Guru Robert Olstein once said, “I like the fund business because I always liked dealing with the small shareholder. I like being a country doctor. That's what I like to do…Money isn't the only driving factor. I like my shareholders; I like dealing with them. When you're dealing with these big-buck guys who put $10 million with you, they want to own your business.”

Robert A. Olstein, chairman and CIO of Olstein Capital Management, has a reputation for selecting stocks by “looking behind the numbers.” Not only does he like dealing with people, he also emphasizes a look behind a company's earnings to assess financial strength and potential risk.

Olstein All-Cap Value Fund currently lists 120 stocks, 12 of them new, in a portfolio valued at $624 million, with a quarter over quarter turnover at 16%. Olstein’s portfolio is weighted with top three sectors of technology at 22.7%, consumer cyclical at 21.2% and healthcare at 13.1%.

The Olstein All-Cap Value Fund recently made numerous trades in the second quarter of 2013, according to GuruFocus Real Time Picks. Here are three highlights from Robert Olstein’s most recent new buys in the second quarter of 2013, a year that Vitamin Shoppe’s CEO Tony Truesdale, calls “a year of investment” for the growing company.



Vitamin Shoppe Inc. (VSI)


Vitamin Shoppe Inc. (VSI) is down 23% over 12 months with a market cap of $1.32 billion.

The current share price is $43.50, trading with a P/E of 20.90.

In the second quarter of 2013, Robert Olstein bought a new holding of 157,000 shares at an average price of $46.99, for a loss of 7%.

Vitamin Shoppe Inc. is a multi-channel specialty retailer of nutritional products and a direct marketer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products. It markets over 400 different nationally recognized brands as well as its proprietary brands, which include Vitamin Shoppe, BodyTech and True Athlete.

The company reported preliminary results for its fiscal second quarter ended June 29, 2013 with total net sales in the quarter increased by 14.1% to $279.5 million compared to $245.0 million in the same period of the prior year. Net income per diluted share for fiscal second quarter 2013 was $0.60 compared to $0.55 per share in the same quarter of the prior year.

Vitamin Shoppe CEO Tony Truesdale, commented, “On a comparable store sales basis, the first two quarters were more challenging and volatile than they had historically been as we lapped last year's strong performance in sports nutrition, accelerated weight management sales and above-average retail inflation. Nevertheless, we delivered positive comparable store sales in the quarter which represented the 31st consecutive quarter of positive comparable store sales.”

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Olstein is one of seven Guru’s holding VSI.

Kohl’s Corp. (KSS)

Kohl’s Corp. is up 20% since January with a market cap of $11.23 billion.

The current share price is $50.69, trading with a P/E of 11.90 and a P/S of 0.61.

In the second quarter of 2013, Robert Olstein bought a new holding of 140,000 shares at an average price of $49.51, for a gain of 2.4%.

Kohl's Corporation was organized in 1988 with family-oriented department stores that sell moderately-priced apparel, footwear and accessories for women, men and children; soft home products such as sheets and pillows; and housewares.

In May, Kohl's Corp announced that for the second quarter of 2013, the company was down 1% in sales and down 4% in net income compared to the same quarter a year ago. Kohl’s net income for the quarter was at $147 million compared to $154 million for the same quarter in 2012.

The company provided initial guidance for the fiscal quarter ending August 3, 2013 of $1.00 to $1.08 per diluted share. The guidance is based on total sales growth of 1 to 3% and comparable store sales growth of 0 to 2% and includes expected second quarter share repurchases of $250 million.

Kohl’s Second quarter financial results will be announced on August 15, 2013.

In July 2013, numerous class action lawsuits were filed against the company, alleging violations of federal securities laws and misrepresentations, according to Reuters.

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Olstein was one of four Guru’s trading KSS in the second quarter.

Teradata Corporation (TDC)

Data storage company Teradata Corporation is down 16% over 12 months with a market cap of $10.40 billion.

The current share price is $63.76, trading with a P/E of 28.20.

In the second quarter of 2013, Robert Olstein bought a new holding of 122,000 shares at an average price of $53.87, for a gain of 18.4%. He last sold out in the first quarter of 2011, unloading 104,300 shares at an average price of $47.05 for a gain of 35.5%.

His trading history, starting in the second quarter of 2008, shows nine quarters of triple-digit gains.



Atlanta-based Teradata Corporation reported revenue of $670 million for the second quarter 2013, showing an increase of 1% from $665 million in the same quarter last year. The company’s gross margin (GAAP) was 56.6%.

Teradata Corporation, originally formed in 1979, provides enterprise data warehousing, including enterprise analytic technologies and services globally.

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Robert Olstein is one of three Gurus trading TDC in second quarter.

Here are many more of Olstein’s latest trades in the second quarter of 2013.

Guru Olstein has long been recognized as one of the financial community's most astute research analysts and money managers. He is widely acknowledged as a leading expert in corporate disclosure and reporting practices. Olstein serves as portfolio manager of the Olstein All Cap Value Fund and co-manages the Olstein Strategic Opportunities Fund.



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.

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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: 4.3/5 (4 votes)

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