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Robert Olstein's Top Second Quarter Portfolio Increases

August 12, 2013
Monica Wolfe

Monica Wolfe

133 followers
Robert Olstein is the chairman and chief investment officer of the Olstein Financial Fund. Olstein selects stocks by looking behind the numbers. He emphasizes a detailed look behind the numbers of a company's financial statement to assess the company's financial strength and assess potential downside risk. To be considered for his selection, a company must generate more cash flow than necessary to sustain the business, avoid aggressive accounting practices, demonstrate balance sheet fundamentals that are consistent with his defense first approach and be selling at a discount to the private market value.



Olstein bought 12 new stocks over the second quarter, bringing his total number of stocks to 120 which are valued at $624 million. The following four companies represent the stocks where Olstein made the largest increase in holdings.

NCR Corporation (NCR)

Olstein made his largest increase of the quarter in NCR Corporation. The guru upped his holdings by 581.48%. He purchased a total of 157,000 shares at an average price of $30.23 per share. Since this most recent increase, the price per share is up approximately 21.6%.

Olstein currently holds 184,000 shares of NCR, representing 0.11% of the company’s shares outstanding and 0.97% of his total portfolio.

Olstein’s holding history as of the second quarter:



NCR Corporation is a global leader in consumer transaction technologies. The company provides software, hardware and a portfolio of services which enables transactions across the financial, retail, hospitality, travel, telecom and technology industries.

NCR’s historical revenue and net income:

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The company’s second quarter results reported:

· Revenue of $1.54 billion, up 9%.

· GAAP diluted EPS of $0.51, compared to $0.54 from last year.

· Non-GAAP EPS from continuing operations of $0.68, up 5%

· $460 million in cash and cash equivalents.

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

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NCR has a market cap of $5.87 billion. Its shares are trading at around $36.75 with a P/E ratio of 47.50, a P/S ratio of 1.10 and a P/B ratio of 4.70.

Ethan Allen Interiors (ETH)

Throughout the second quarter, Olstein increased his position in Ethan Allen by 161.82%. The guru bought 89,000 shares at an average price of $30.98. Since this buy, the price per share has dropped -4.8% from Olstein’s average purchase price.

Olstein holds on to a total of 144,000 shares of Ethan Allen, representing 0.50% of the company’s shares outstanding and 0.66% of his total portfolio.

Olstein’s holding history as of the second quarter:



Ethan Allen Interiors is an interior design company and manufacturer and retailer of home furnishings. The company offers free interior design service to its clients and sells a full range of furniture products and decorative accessories.

Ethan Allen’s historical revenue and net income:

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The company recently released its FY2013 results which highlighted:

· Net income per diluted share of $1.31, an increase of 39% from 2012.

· Adjusted operating profits were $69 million, a 33% increase.

· Gross margin grew 110 basis points to 54.6%.

· Cash dividends to stockholders of $22 million, an increase of 176% from 2012.

The company also recently declared an 11% increase in their cash dividend.

The Peter Lynch Chart shows that Ethan Allen is currently overvalued:

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Ethan Allen has a market cap of $852.6 million. Its shares are currently trading at around $29.50 with a P/E ratio of 27.40, a P/S ratio of 1.20 and a P/B ratio of 2.50.

Micros Systems (MCRS)

During the second quarter Olstein increased his position in Micros Systems 72.73% by purchasing a total of 80,000 shares. He purchased these shares at a price of $43.27 per share. Since his increase, the price per share is up about 14.2%.

The guru now holds on to a total of 190,000 shares of Micros Systems, representing 0.24% of the company’s shares outstanding and 1.3% of his total portfolio. Olstein’s holding history as of the second quarter:



Micros Systems provides enterprise applications for the hospitality and retail industries worldwide. Micros provides property management systems, central reservation and customer information solutions, as well as point-of-sale, loss prevention and cross-channel functionality operations.

Micros Systems’ historical revenue and net income:

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The company is set to release its fourth quarter and fiscal year 2013 results on Aug. 22, 2013.

The Peter Lynch Chart shows that the company currently appears to be overvalued:

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Micros Systems has a market cap of $3.89 billion. Its shares are trading at around $49.40 with a P/E ratio of 22.60, a P/S ratio of 3.30 and a P/B ratio of 3.30. The company had an annual average earnings growth of 16.8% over the past ten years.

GuruFocus rated Micros the business predictability rank of 4-star.

Towers Watson & Co. (TW)

During the second quarter Olstein increased his holdings in Towers Watson by 70.21%. The guru purchased a total of 33,000 shares at an average price of $75.22 per share. Since this increase, the share price is trading up approximately 15.2%.

Olstein now owns a total of 80,000 shares of Towers Watson, representing 0.11% of the company’s shares outstanding and 1% of his total portfolio.

Olstein’s holding history as of the second quarter:



Towers Watson is a global professional services company that helps organizations improve their performance through financial and risk management. The company offers solutions in the areas of employee benefit programs, talent and reward programs, and risk and capital management, including insurance and reinsurance.

Towers Watson’s historical revenue and net income:

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Towers Watson is set to release their fourth quarter and fiscal year 2013 earnings on Aug. 14, 2013.

The Peter Lynch Chart shows that the company currently appears to be overvalued:

1376344607304.png

Towers Watson has a market cap of $6.11 billion. Its shares are trading at around $86.62 with a P/E ratio of 20.50, a P/S ratio of 1.70 and a P/B ratio of 2.60. Towers Watson & Co. had an annual average earnings growth of 11.5% over the past ten years.

GuruFocus rated Towers Watson the business predictability rank of 3-star.

Check out Robert Olstein’s second quarter portfolio here.

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