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Century Management’s Three Sell Outs

October 10, 2013 | About:
Sally Jones

Sally Jones

49 followers
Arnold Van Den Berg of Century Management has a portfolio of 64 stocks, seven of them new, with a total value of $1.01 billion, and a quarter over quarter turnover of 5%. The portfolio is currently weighted with top three sectors: industrials at 33.3%, technology at 20% and financial services at 16.3%. Guru Van Den Berg has averaged a return of 8.61% over 12 months.

Here is an update on the three companies Guru Van Den Berg sold out in the third quarter of 2013:

Applied Materials Inc. (AMAT): Sold Out

Impacts Portfolio: -2.9%

Up 59% over 12 months, Applied Materials Inc., a semiconductor company, has a market cap of $20.86 billion; its shares were traded at around $17.34 with a P/E ratio of 801.90 and a P/B of 3.00.

Guru Action: As of Sept. 30, 2013, Arnold Van Den Berg sold out his position, selling 1,880,877 shares at an average price of $15.97, for a gain of 11.3%.

The trading history shows gains in every quarter except for the second quarter of 2008, when he made a new buy of 121,230 shares at an average price of $19.54, and took a loss of 9%.

At the end of September, Applied Materials Inc. and Tokyo Electron Limited reached an agreement to combine their companies and launch a new company via an all-stock combination that values the new company at approximately $29 billion. The deal is expected to be finalized in the second half of 2014. Once combined, the companies project $250 million in annualized run-rate operating synergies by the end of the first full fiscal year and $500 million by the end of year three.

An Applied Materials press release explained the all-stock combination deal: “…Tokyo Electron shareholders will receive 3.25 shares of the new company for every Tokyo Electron share held. Applied Materials shareholders will receive 1 share of the new company for every Applied Materials share held. After the close, Applied Materials shareholders will own approximately 68% of the new company and Tokyo Electron shareholders approximately 32%.”

President and CEO of Applied Materials, Gary Dickerson, commented on the merger: “We are creating a global innovator in precision materials engineering and patterning that provides our new company with significant opportunities to solve our customers' high-value problems better, faster and at lower cost. We believe the combination will accelerate our momentum for profitable growth, increase the value we deliver to shareholders and create great opportunities for our employees.”

Track historical pricing, revenue and net income:

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Apogee Enterprises (APOG)

Impacts Portfolio: -0.57%

Up 56% over 12 months, Apogee Enterprises has a market cap of $856.44 million; its shares were traded at around $29.89 with a P/E ratio of 38.40.

The company reported its fiscal 2014 second quarter financials with a 1% increase in revenue and an increase in operating income of 24%. Earnings per share were also up 17% for the quarter, at $0.21 per share. The company’s most lucrative segment, architectural glass, had $70 million in revenue for the second quarter, an 11% increase.

Guru Action: As of Sept. 30, 2013, Arnold Van Den Berg sold out his position, unloading 230,710 shares at an average price of $27.6, for a gain of 8.3%.

The trading history shows nine quarters of gains, dating back to the third quarter of 2011, his highest quarter. He gained 195.6% on a new buy of 788,140 shares bought at an average price of $10.11.

Track historical pricing, revenue and net income:

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Benchmark Electronics (BHE)

Impacts Portfolio: -0.4%

Up 45% over 12 months, Benchmark Electronics has a market cap of $1.2 billion; its shares were traded at around $22.11 with a P/E ratio of 21.40.

The company reported 2013 second quarter financial results with a net income of $8.5 million, down from $13.6 million in the same period a year ago. Net sales for the second quarter were at $607.5 million, down from $630 million in the same quarter for 2012. The company reported earnings per dilute share at $0.16, down from $0.24 in the second quarter a year ago.

Guru Action: As of Sept. 30, 2013, Arnold Van Den Berg sold out his position, selling 195,546 shares at an average price of $22.13, for a loss of 0.1%. This was his only losing quarter after nine quarters of double-digit gains.

His highest gaining quarter was in the fourth quarter of 2011 with a gain of 62.6% on 428,716 shares bought at an average price of $13.60.

Track historical pricing, revenue and net income:

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Here are Arnold Van Den Berg’s top buys, sells and holdings:



Study the rest of Arnold Van Den Berg’s sells.

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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 (3 votes)

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