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Real-Time Royce on a Roll Reducing LECO, JOSB, AP, LXU, Others

November 09, 2013 | About:
Sally Jones

Sally Jones

49 followers
Small-cap strategist and Guru Chuck Royce of Royce & Associates is on a roll to reduce, according to GuruFocus Real Time Picks. Chuck Royce currently manages a portfolio of 1,438 stocks, with 149 new ones. His portfolio’s total value is $32.3 billion, with a quarter-over-quarter turnover rate of 6%.

Here are the latest company updates and trade details of four high-impact reductions made by Chuck Royce as of Oct. 31, 2013.

Lincoln Electric Holdings Inc. (LECO): Reduced

Impacts Portfolio: -0.6%

Up 62% over 12 months, Lincoln Electric Holdings Inc., a manufacturer and reseller of welding and cutting products, has a market cap of $5.79 billion; its shares trade with a P/E ratio of 22.10. The dividend yield is 1.13%.

The company reported financial results for the third quarter of 2013 with a net income of $66 million, up from $64.8 million in the same quarter of 2012. Earnings of $0.80 per diluted share were also up from $0.77 per diluted share in the same quarter a year ago. The company’s adjusted net income was $71.1 million, up from $67.5 million in the third quarter of 2012. Earnings of $0.86 per diluted share in the reporting quarter were up from $0.80 in the same quarter a year ago. Lincoln’s sales were slightly down at $691.9 million for the quarter, compared to sales of $697.6 million in the same quarter of 2012.

Guru Action: As of Oct. 31, 2013, Guru Chuck Royce reduced his position by 38.89%, selling shares in the average price range of $67.19. The current share price is around $70.92 with a change from average up 6%.

His current shares remain at 4,288,936.

In an amazing five-year history of high gains, Royce has averaged a gain of 86% buying 1,368,945 shares at an average price of $38.13 per share. Selling 4,843,132 shares at an average price of $39.06, he gained 82%.

Track historical pricing, revenue and net income:

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JoS. A. Bank Clothiers Inc. (JOSB): Reduced

Impacts Portfolio: -0.44%

Up 7% over 12 months, JoS. A. Bank Clothiers Inc., a men’s apparel designer, manufacturer, and retailer, has a market cap of $1.37 billion; its shares trade with a P/E ratio of 21.30. The company does not pay a dividend.

The company reported financial results the second quarter of fiscal year 2013, with a net income of $14.2 million, down from $23.2 million for the same quarter a year ago. Earnings were $0.51 per diluted share, down from $0.83 per share for the second quarter of fiscal year 2012.

President and CEO of JoS. A. Bank Clothiers Inc., R. Neal Black, commented in a company press release: “While our total sales declined in the second quarter of fiscal 2013, we achieved stability in our gross profit margin rate. Specifically, our gross profit margin rate increased in both the fiscal months of June and July and the overall rate for the second quarter increased approximately 40 basis points from last year.”

Guru Action: As of Oct. 31, 2013, Guru Chuck Royce reduced his position by 98.95%, selling shares in the average price range of $49.83. The current share price is around $48.79 with a change from average down 2%.

His current shares remain at 31,300.

Across a five-year history, Royce has averaged a gain of 24% buying 3,717,649 shares at an average price of $39.42 per share. Selling 1,143,227 shares at an average price of $40.86, he gained 19%.

Track historical pricing, revenue and net income:

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Ampco-Pittsburgh Corporation (AP): Reduced

Impacts Portfolio: -0.04%

Up 5% over 12 months, Ampco-Pittsburgh Corporation, an industrial steel and supply company, has a market cap of $189.22 million; its shares trade with a P/E ratio of 31.00. The dividend yield is 3.94%.

The company reported financial results for the third quarter of 2013, with income of $64.4 million down from $72.1 million in the same quarter a year ago. The company’s net income is at $12.7 million for the reporting quarter, up from $1.5 million in the same quarter a year ago. Earnings per diluted share are up at $1.22, compared to $0.15 in the same quarter of 2012.

Guru Action: As of Oct. 31, 2013, Guru Chuck Royce reduced his position by 43.79%. He sold in the average price range of $18.45. The current share price is around $18.26 with a change from average down 1%.

His current shares are 789,547.

Chuck Royce has averaged a loss of 32% buying 934,270 shares at an average price of $26.80 per share.

Track historical pricing, revenue and net income:

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LSB Industries Inc. (LXU): Reduced

Impacts Portfolio: -0.04%

Down 20% over 12 months, LSB Industries Inc., a climate control and chemicals company, has a market cap of $690.9 million; its shares trade with a P/E ratio of 28.90. The company does not pay a dividend.

The company reported financial results for the third quarter of 2013 with a net income of $10.3 million, up from $6.7 million in the same quarter a year ago. Diluted earnings per common share for the third quarter of 2013 were reported at $0.43, also up from the same quarter a year ago at $0.28. Company sales were off by 3%, bringing in $177.4 million for the third quarter of 2013. LSB’s operating income doubled at $23.1 million, up from $11.9 million in the same quarter one year ago.

Guru Action: As of Oct. 31, 2013, Guru Chuck Royce reduced his position by 59.49%, selling shares in the average price range of $36.00. The current share price is around $30.64 with a change from average down 15%.

His current shares remain at 223,099.

Royce has taken a loss of 22% buying 2,681,112 shares at an average price of $39.24 per share. Selling 2,130,413 shares at an average price of $35.94, he also averaged a loss of 15%.

Track historical pricing, revenue and net income:

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Study the rest of Chuck Royce’s recent adds and reductions.

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.

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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: 5.0/5 (1 vote)

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