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The Midas Touch - Chuck Royce Second Quarter Sells

August 23, 2013 | About:
Sally Jones

Sally Jones

49 followers
Some of Chuck Royce’s remarkable trading histories evoke the myth of King Midas whose touch turned everything to gold.

Billionaire Chuck Royce is president, co-CIO and portfolio manager of Royce & Associates, based in New York. The Royce portfolio currently lists 1,438 stocks, 148 of them new, a quarter-over-quarter turnover of 6%, and a total value of $32.37 billion. His top three investment sectors are weighted with technology at 26.2%, consumer cyclical at 18.2% and financial services at 10.1%. According to the GuruFocus Score Board of Gurus, Chuck Royce has averaged a return of 18.35% over 12 months.

Chuck Royce was very active trading in the second quarter. Here are six of his high-impact trades, as of June 30, 2013.



Oil States International Inc. (OIS): Reduced

Impact to Portfolio: -0.2%

Up 15% over 12 months, Oil States International has a market cap of $5 billion; its shares were traded at around $90.69, with a P/E of 13.10. The P/B ratio is 2.00.

Guru Action: As of June 30, 2013, Chuck Royce reduced his position by 28.6%, selling 800.141 shares at an average price of $89.31, for a gain of 1.5%.

He has averaged a gain of 77% on 3,584,145 shares bought at an average price of $51.10 per share. On shares sold, he has averaged a gain of 46% on 3,738,392 shares sold at an average price of $62.04 per share.

His holding history shows pure gains and many high-gaining quarters since the second quarter of 2008:

1377276622783.png

Royce’s current OIS shares remaining: 1,997,753.

Nu Skin Enterprises Inc. (NUS): Reduced

Impact to Portfolio: -0.19%

Up 104% over 12 months, Nu Skin Enterprises Inc. has a market cap of $5.1 billion; its shares were traded at around $86.91, with a P/E of 21.90. The P/B ratio is 7.40.

Guru Action: As of June 30, 2013, Chuck Royce reduced his position by 17.6%, selling 1,464,338 shares at an average price of $55.51, for a gain of 56.6%.

He has averaged a gain of 135% on 5,235,750 shares bought at an average price of $37.06 per share. On shares sold, he has averaged a gain of 157% on 9,163,134 shares sold at an average price of $33.80 per share.

His holding history shows remarkable gains, topping at an average gain of 769.1% in the first quarter of 2009.

1377276878322.png

Royce’s current NUS shares remaining: 6,856,649.

Westlake Chemical Corporation (WLK): Reduced

Impact to Portfolio: -0.16%

Up 48% over 12 months, Westlake Chemical Corporation has a market cap of $6.86 billion; its shares were traded at around $102.68, with a P/E of 15.30. The P/B ratio is 3.20.

Guru Action: As of June 30, 2013, Chuck Royce reduced his position by 17.04%, selling 564,641 shares at an average price of $89.87, for a gain of 14.3%.

He has averaged a gain of 115% on 2,434,011 shares bought at an average price of $47.74 per share. On shares sold, he has averaged a gain of 116% on 5,940,856 shares sold at an average price of $47.51 per share.

Another remarkable holding history with numerous triple-digit gaining quarters:

1377277261996.png

Royce’s current WLK shares remaining: 2,748,965.

Buckeye Technologies Inc. (BKI): Reduced

Impact to Portfolio: -0.15%

Up 23% over 12 months, Buckeye Technologies, a cellulose-based product company,has a market cap of $1.48 billion; its shares were traded at around $37.50, with a P/E of 16.90. The P/B ratio is 2.10.

Track historical pricing:

1377278815124.png

Guru Action: As of June 30, 2013, Chuck Royce reduced his position by 99.57%, selling 1,614,164 shares at an average price of $35.30, for a gain of 6.2%.

He has averaged a gain of 35% on 1,634,264 shares bought at an average price of $27.72 per share. On shares sold, he has averaged a gain of 6% on 1,627,264 shares sold at an average price of $35.25 per share.

Royce’s current BKI shares remaining: 7,000.

GameStop Corp. (GME): Reduced

Impact to Portfolio: -0.13%

Up 179% over 12 months, GameStop Corp., a video game retailer,has a market cap of $6.05 billion; its shares were traded at around $51.48. The P/B ratio is 2.80.

Track historical pricing:

1377279066665.png

Guru Action: As of June 30, 2013, Chuck Royce reduced his position by 30.96%, selling 1,515,975 shares at an average price of $35.40, for a gain of 45.4%.

He has averaged a gain of 135% on 8,551,703 shares bought at an average price of $21.95 per share. On shares sold, he has averaged a gain of 91% on 5,171,023 shares sold at an average price of $26.92 per share.

Royce’s holding history shows pure gains with many quarters in triple-digit average gains:

1377277792474.png

Royce’s current GME shares remaining: 3,380,680.



Veeco Instruments Inc. (VECO): Reduced

Impact to Portfolio: -0.2%

Up 6% over 12 months, Veeco Instruments has a market cap of $1.37 billion; its shares were traded at around $34.88. The P/S is 1.80.

Track historical pricing:

1377279261562.png

Guru Action: As of June 30, 2013, Chuck Royce reduced his position by 26.19%, selling 977,608 shares at an average price of $37.63, for a loss of 7.3%.

He has averaged a loss of 27% on 5,192,020 shares bought at an average price of $47.51 per share. On shares sold, he has averaged a gain of 6% on 2,436,408 shares sold at an average price of $32.92 per share.

Royce’s current VECO shares remaining: 2,755,612.

Here is the complete portfolio of Chuck Royce.



1. Chuck Royce's Undervalued Stocks

2. Chuck Royce's Top Growth Companies

3. Chuck Royce's High Yield stocks

4. Stocks that Chuck Royce keeps buying

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.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

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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: 2.8/5 (5 votes)

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