John Rogers Takes 10% Stake in Two Companies

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Oct 10, 2013
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Earlier today GuruFocus Real Time Picks reported Guru John Rogers’ two increases made on Sept. 30. The guru made a rather large increase to his stake in Rosetta Stone (RST) and a smaller yet notable increase to his position in Astro-Med (ALOT).

Rosetta Stone (RST)


Rogers made a rather large increase in his position in Rosetta Stone last week. The guru upped his stake 138.19% by purchasing a total of 1,315,089 shares. He purchased these shares at an average price of $16.23 per share. The price is trading slightly down today at $16.18 per share.

John Rogers now holds on to a total of 2,266,743 shares of Rosetta Stone, representing 10.4% of the company’s shares outstanding. His update in the company makes him the largest guru shareholder of Rosetta Stone stock.

Rogers’ historical holding history of RST:

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Rosetta Stone is a provider of technology-based language learning solutions. The company develops, markets and sells language learning solutions consisting of software, online services and audio practice tools under the Rosetta Stone brand. The company currently offers courses in 30 languages.

Rosetta Stone’s historical revenue and net income:

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The analysis on Rosetta Stone reports that:

· The price is nearing a 2-year high.

· Its revenue has been in decline over the past few years.

· Its P/S ratio is nearing a 2-year high of 1.37.

· Its gross and operating margins have been in decline.

Recently Rosetta Stone announced $25 million share repurchase plan. The plan will purchase these shares of outstanding common stock over the duration of a two-year period.

The company also recently announced that they had launched a “Kids Division.” Rosetta Stone introduced the Lingo Letter Sounds to promote blended reading and learning in children from the ages 3 to 6. The program comes in the form of an app and is currently available only on Apple products.

The past quarter showed immense growth as its EBITDA jumped nearly 150% to $2.8 million.

Rosetta Stone has a market cap of $350.1 million. Its shares are currently trading at around $16.06 with a P/S ratio of 1.30 and a P/B ratio of 2.50.

As of the close of the second quarter, there were six gurus that held a stake in Rosetta Stone.

Astro-Med (ALOT)

John Rogers also made a smaller but still notable increase in the company Astro-Med. The guru upped his stake 13.01% by purchasing a total of 86,937 shares of the company’s stock. He bought these shares at an average price of $10.96 per share, and since then the price per share has increased about 6%.

Rogers now holds on to a total of 755,379 shares of Astro-Med, making him the largest guru shareholder and representing 10.14% of the company’s shares outstanding.

Rogers holding history of Astro-Med:

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Astro-Med designs, develops, manufactures and distributes specialty printers and data acquisition and analysis systems, including both hardware and software. These products incorporate technologies used to acquire, store, analyze and present data in multiple formats.

Astro-Med’s historical revenue and net income:

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The analysis on Astro-Med reports that the company’s dividend yield is near a 5-year low, its price is nearing a 5-year high, its revenue has been in decline over the past five years and the company currently holds no debt.

Astro-Med recently announced a contract with Russia’s United Aircraft Corporation Integration Center. The company will be building their product ToughWriter 5 for the aircraft service’s flight deck printers. This expands the company’s reach worldwide.

Over the past quarter the company saw an increase in sales of 17.3% from the past year.

Also over the past quarter, Astro-Med has been upping their new products. The company has announced new or new updates to three different products over the past quarter. You can check out more information on these products here.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Astro-Med has a market cap of $86.7 million. Its shares are currently trading at around $11.62 with a P/E ratio of 68.30, a P/S ratio of 1.30 and a P/B ratio of 1.40. The company also currently holds a dividend yield of 2.40%.

There are currently two gurus that hold a position in Astro-Med.

Check out all of John Rogers’ real time picks here.

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