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Gabelli Reduces Gabelli GDV, Schwab, More and Spins Off New Global Fund

November 11, 2013 | About:
Sally Jones

Sally Jones

49 followers
The updated portfolio of Mario Gabelli’s GAMCO Investors lists 820 stocks, 55 of them new, and a total value at $17.02 billion. The quarter-over-quarter turnover is 6%. The portfolio is weighted with top three sectors in technology at 24.6%, consumer cyclical at 20.3% and consumer defensive at 10.8%. Guru Mario Gabelli has averaged a return of 12.11% over 12 months.

Here are four Gabelli trade highlights from the third quarter, featuring companies rated as "1 Star" by GuruFocus for low business predictability, the highest rating being "5 Stars." Up first is Mario Gabelli’s reduction of his own GDV, The Gabelli Dividend & Income Trust, currently in the process of creating a new global spin-off from GDV.

The Gabelli Dividend & Income Trust (GDV): Reduced

Impacts Portfolio: -0.06%

Current Shares: 798,447

Up 31% over 12 months, The Gabelli Dividend & Income Trust has a market cap of $2.31 billion; the PEG is 1.20. The dividend yield is 7.00%. GuruFocus analysis shows that there is not enough data about GDV and the interest coverage is extremely low. GDV is rated 1 out of 5 stars for business predictability.

GAMCO Investors last reported in August that the board of trustees of The Gabelli Dividend & Income Trust had approved the creation of a new, diversified, closed-end investment company, pending approvals. The new fund will invest in the equities of small and mid cap value stocks, primarily outside the U.S., according to a company press release, which also stated that The Gabelli Dividend & Income Trust would contribute approximately $100 million of its cash and/or securities and would then distribute all of the shares of the new fund pro rata to the common shareholders of GDV. The new fund will be listed on the NYSE.

Guru Action: As of Sept. 30, 2013, Mario Gabelli reduced his holding by 37.31%, unloading 475,140 shares at an average price of $19.89, making a gain of 6.7%.

The current share price is around $21.07, with a change from average up 6%.

In 12 gaining quarters of trading, Gabelli gained 87% buying 20,056 shares at an average price of $11.36 per share. He gained 25% selling 1,866,550 shares at an average price of $16.94 per share.

Mario Gabelli is the sole guru stakeholder and insider trading GDV.

Here’s Gabelli’s holding history:

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Track historical share pricing of GDV since 2003:

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Charles Schwab Corp. (SCHW): Reduced

Impacts Portfolio: -0.01%

Current Shares: 118,000

Up 86% over 12 months, Charles Schwab Corp. has a market cap of $30.98 billion; its shares trade with a P/E ratio of 34.40. The dividend yield is 1.00%. SCHW is rated 1 out of 5 stars for business predictability.

Here’s the GuruFocus analysis for SCHW, showing seven warning signs.

Guru Action: As of Sept. 30, 2013, Mario Gabelli reduced his holding by 43.81%, unloading 92,000 shares at an average price of $21.74, making a gain of 10.8%.

The current share price is around $24.02, with a change from average up 10%.

In five years of trading for gains, Gabelli gained 50% buying 1,307,282 shares at an average price of $16.09 per share. He gained 26% selling 1,698,682 shares at an average price of $19.06 per share.

As of the second quarter of 2013, four gurus made new buys of SCHW and four gurus sold out. Check out the numerous guru stakeholders, along with recent insider selling.

Track historical pricing, revenue and net income:

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Arbitron Corporation (ARB): Sold Out

Impacts Portfolio: -0.06%

Up 32% over 12 months, Arbitron Corporationhas a market cap of $1.29 billion; its shares trade with a P/E ratio of 24.60. The company does not pay a dividend. ARB is rated 1 out of 5 stars for business predictability.

Here’s the GuruFocus analysis for ARB.

Guru Action: As of Sept. 30, 2013, Mario Gabelli sold out his holding, selling 191,100 shares at an average price of $46.64, making a gain of 2.9%.

The current share price is around $48.00, with a change from average up 3%.

In eight quarters of gains, Gabelli’s highest gains of 63.9%, 78.2% and 52.9% were in the second, third and fourth quarters of 2010, respectively.

After Mario Gabelli’s sell out, six gurus hold ARB, and there is one insider trading so far in 2013.

Track historical pricing, revenue and net income:

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Ameristar Casinos Inc. (ASCA): Sold Out

Impacts Portfolio: -0.06%

Up 53% over 12 months, Ameristar Casinos Inc. has a market cap of $877.21 million; its shares trade with a P/E ratio of 16.60. The company does not pay a dividend. ASCA is rated 1 out of 5 stars for business predictability.

The GuruFocus analysis shows three warning signs for ASCA.

Guru Action: As of Sept. 30, 2013, Mario Gabelli sold out his holding, unloading 358,000 shares at an average price of $26.44, making a gain of 0.2%.

The current share price is around $26.50, with a 0% change from average.

In three quarters of trading, Gabelli’s highest gain of 0.7% was in the second quarter of 2013 when he bought 308,000 at an average price of $26.32 per share.

Four gurus hold ASCA as of the second quarter of 2013, and there is one insider sell in 2013.

Track historical pricing, revenue and net income:

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The Gabelli Dividend & Income Trust is a non-diversified, closed-end management investment company with $2.3 billion in total net assets. The company’s primary investment objective is to provide a high level of total return with an emphasis on dividends and income.

Check out the complete portfolio of Mario Gabelli, founder, chairman and CEO of GAMCO Investors.





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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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