Free 7-day Trial
All Articles and Columns »

HBI Buys Maidenform - Royce Reduces MFB, ZEUS, FARO

October 24, 2013 | About:
Sally Jones

Sally Jones

47 followers
Guru Chuck Royce is one of the few gurus actively selling in the third quarter. Royce has averaged a return of 24.59% over 12 months; over 10 years his average return is 12.6%. At Royce & Associate funds, Royce manages 1,438 stocks, with 149 of them new, in a portfolio valued at $32.3 billion. His quarter-over-quarter turnover is 6%. The Royce portfolio’s top three sector weightings are technology at 26%, consumer cyclical at 18.2% and financial services at 10.1%.

Here are three more major reductions made by Royce & Associates as of the third quarter of 2013, starting with Maidenform Brands Inc. (MFB), recently acquired by Hanesbrand Inc. (HBI). In July 2013, Hanesbrand bought Maidenform for around $575 million.

Maidenform Brands Inc. (MFB): Reduced

Impacts Portfolio: -0.15%

Current Shares: 312,700

Up 27% over 12 months, Maidenform Brands Inc. has a market cap of $548.2 million; its shares were traded at around $23.50 with a P/E ratio of 23.80. The company does not pay a dividend.

Maidenform Brands Inc. is an intimate apparel company. The company designs, sources and markets an extensive range of intimate apparel products, including bras, panties and shapewear.

The company reported financial results for the second quarter 2013 with net sales at $145.4 million. Earnings per share of $0.34 were reported for the same quarter. The company reported net sales declined 7.7%, year-over-year, at $145.4 million. Maidenform’s wholesale segment also dropped 8.2% in net sales to $129.8 million.

Guru Action: In the third quarter of 2013, Guru Chuck Royce reduced his position by 87.78%, selling shares in the average price range of $23.36.

In seven out of nine quarters of trading, Royce has made gains. He has averaged a gain of 5% on 2,558,609 shares bought at an average price of $17.96 per share.

Track historical pricing, revenue and net income:



Check out numerous gurus holding MFB. There is no recent insider trading to report.

Faro Technologies Inc. (FARO): Reduced

Impacts Portfolio: -0.09%

Current Shares: 626,963

Up 5% over 12 months, Faro Technologies Inc. has a market cap of $716.4 million; its shares were traded at around $42.04 with a P/E ratio of 36.50. The company does not pay a dividend.

Founded in 1982, Faro Technologies Inc. develops and markets computer-aided coordinate measurement devices and software. The company’s systems are used in a range of manufacturing, industrial, building construction and forensic applications.

In August, Fortune Magazine named FARO as one of the 100 Fastest-Growing Companies. FARO was ranked No. 85 based on revenue growth of 23%, profit growth of 98%, and a total return of 22%. FARO lists $274 million in revenue and $20.8 million in net income, with almost $180 million in cash on the balance sheet. According to a company press release, Fortune selects companies based on rankings of revenue growth rates, EPS growth rate and three-year annualized return for the period ending June 28, 2013.

Guru Action: In the third quarter of 2013, Guru Chuck Royce reduced his position by 54.29%, selling shares in the average price range of $36.73.

Across a five-year history that shows only three losing quarters, Royce has averaged a gain of 34% on 2,161,687 shares bought at an average price of $31.28 per share. Selling 2,040,094 shares at an average price of $35.81 per share, he gained 17%.

Track historical pricing, revenue and net income:



Check out other gurus holding FARO and recent insider trading.

Olympic Steel (ZEUS): Reduced

Impacts Portfolio: -0.05%

Current Shares: 717,784

Up 73% over 12 months, Olympic Steel has a market cap of $333.2 million; its shares were traded at around $30.42 with a P/B ratio of 1.10. The dividend is 0.30%.

Olympic Steel a metals service center that operates in two reportable segments: flat products, and tubular and pipe products. The company provides metal processing and distribution services for a wide range of customers and acts as an intermediary between metal producers and manufacturers that require processed metal for their operations.

The company reported financial results for the second quarter of 2013 with net sales down 10% from the same quarter a year ago, at $330.8 million.

For the second quarter of 2013, the company’s net income totaled $2.5 million, down from $4.5 million in the same quarter of 2012. Earnings per diluted share were reported at $0.23 for the second quarter of 2013, down from $0.41 per diluted share in the second quarter of 2012.

Guru Action: In the third quarter of 2013, Guru Chuck Royce reduced his position by 45.2%, selling shares in the average price range of $27.85.

Royce has averaged a loss of 7% on 773,921 shares bought at an average price of $32.71 per share, over a five-year history. Selling 1,200,979 shares at an average price of $40.68 per share, he gained 25%.

Track historical pricing, revenue and net income:



As of the third quarter of 2013, Chuck Royce is the sole ZEUS guru stakeholder. Check out the very active insider trading.

Read more about Chuck Royce’s high-impact reductions in the third quarter of 2013.

His top buys, sells, and holdings:



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.

If you are not a Premium Member, we invite you for a 7-day Free Trial.

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: 2.4/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide