The GuruFocus Buffett-Munger Screener currently highlights the craft brewer of Samuel Adams beer and the long-time king of kitchen storage containers, two U.S. companies in the consumer defensive sector with high predictability and EBIDTA growth over 10 years.
Second quarter 2013 trading highlights in this sector include Boston Beer Company Inc. (SAM) up 95% over 12 months. Guru Mario Gabelli has averaged tremendously high gains on it. Tupperware Brands Corporation (TUP) is also up 63%, and the company’s CEO Rick Goings was named “CEO of the Year” by the Holmes Group for 2013.
Boston Beer Company Inc. (SAM)
EBITDA: 24% 10-year Growth Rate
Rated with 4.5-star predictability, Boston Beer Company Inc. (SAM) is up 95% over 12 months, with a market cap of $2.71 billion; its shares trade at around $211.36 with a P/E ratio of 48.600 and P/S ratio of 4.47.
Best known for its Samuel Adams brew, the Boston Beer Company Inc. is a craft brewer in the U.S. Boston Beer produces malt beverages and hard cider at company-owned breweries and under contract arrangements at other brewery locations. The company-owned breweries are located in Boston, Massachusetts, Cincinnati, Ohio and Breinigsville, Pennsylvania. The company's beers are mainly positioned in the “better beer” category of the industry, which includes craft brewers, specialty beers and most imports. The company sells its products to a network of approximately 400 wholesale distributors.
The Boston Beer Company Inc. reported second quarter 2013 net revenue of $181.3 million, an increase of $33.8 million or 23%, over the same period last year, mainly due to core shipment growth of 21%. Net income for the second quarter was $19.7 million, or $1.45 per diluted share, an increase of $5.4 million or $0.39 per diluted share from the second quarter of 2012. Earnings per diluted share for the 26-week period ended June 29, 2013 was $1.96, an increase of $0.35 from the comparable 26-week period in 2012. Net revenue for the 26-week period ended June 29, 2013 was $317.3 million, an increase of $56.5 million, or 22%, from the comparable 26-week period in 2012, according to a company press release.
Guru Action: As of June 30, 2013, Mario Gabelli sold 4,300 shares at an average price of $158.63 for a gain of 33.2%. He has averaged a gain of 575% on 247,500 shares bought at an average price of $31.31 per share. Gabelli has averaged a gain of 232% on 135,400 shares bought at an average price of $63.733 per share.
Here is Mario Gabelli’s remarkable trading history:
In the same quarter, John Hussman bought a new holding of 30,000 shares at an average price of $158.63 for a gain of 33.2%. Ken Fisher bought 53,247 shares at an average price of $158.63 for a gain of 33.2%. He has averaged a gain of 82% on 426,007 shares bought at an average price of $116.07.
Here are more Gurus holding SAM.
Tupperware Brands Corporation (TUP)
EBITDA: 11.6% 10-year Growth Rate
Rated with 5-star predictability, Tupperware Brands Corporation (TUP) is up 63% over 12 months, with a market cap of $4.52 billion; its shares trade at around $87.43 with a P/E ratio of 25.10 and P/S ratio of 1.80. The yield is 2.30%.
Tupperware Brands Corporation was organized in 1996 in connection with the corporate reorganization of Premark International Inc. Tupperware Brands is a worldwide direct selling consumer products company, engaged in the manufacture and sale of Tupperware products and cosmetics and personal care products under a variety of trade names. The core of Tupperware's product line consists of design-centric preparation, storage and serving solutions for the kitchen and home.
The company reported second quarter 2013 net sales of $688 million, with emerging markets increasing by 14% and established markets down 1%. The GAAP net income for the quarter increased to $76 million from $13 million in the same quarter a year ago. The company also returned $133 million to shareholders through a dividend payout of $33 million and the repurchase of 1.23 million shares for $100 million.
Guru Action: TUP is currently held by eight Gurus. As of June 30, 2013, Scott Black bought 12,125 shares at an average price of $80.84 for a gain of 8.2%. Black has averaged a gain of 49% on 111,987 shares bought at an average price of $58.69 per share.
Mario Gabelli sold 2,000 shares at an average price of $80.84 for a gain of 8.2%. Gabelli has averaged a gain of 92% on 53,200 shares bought at an average price of $59.47 per share.
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