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Guru Mario Gabelli's Top Five Third Quarter Portfolio Increases

November 13, 2013 | About:
Monica Wolfe

Monica Wolfe

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Mario Gabelli is the founder, chairman and CEO of Gabelli Asset Management Company Investors (GAMCO Investors). GAMCO Investors is best known for its research-driven, value-oriented equity investing expertise which is based on the principles of Graham & Dodd — that is, investing in undervalued companies that have a high probability of achieving their intrinsic or private value over time.

The fund announced that as of Sept. 30, the total assets under management increased to a record $43.5 billion, which is up an additional $3.0 billion from the second quarter and up $6.6 billion from last year. As of the close of the third quarter, Mario Gabelli held on to 820 stocks (55 were new buys this quarter) valued at $17.03 billion.

The following five companies are the stocks that Gabelli made the largest increase to over the duration of the third quarter.

Sony Corporation (SNE)

Over the duration of the third quarter, Gabelli made his largest increase to Sony Corporation, where the guru upped his stake by 3293.93%. Gabelli purchased a total of 378,800 shares in the quarterly price range of $19.66 to $21.96, with an estimated quarterly price of $21.19. Since then the price per share has dropped approximately -18.9%.

Gabelli now holds on to a total of 390,300 shares of the company’s stock, representing 0.04% of the company’s shares outstanding and 0.049% of his total portfolio.

Mario Gabelli’s historical holding history:



Sony develops, designs, manufactures and sells electronic equipment, instruments and devices for consumer, professional and industrial markets as well as game hardware and software.

Sony’s historical revenue and net income:



The analysis on Sony reports that the company’s revenue has been in decline over the past five years, its P/E ratio is nearing a 10-year high and its Piotroski F-Score is currently high.

The top guru shareholders of Sony:

1. PRIMECAP Management: 15,140,239 shares, representing 1.5% of the company’s shares outstanding and 0.46% of their total portfolio.

2. Mario Gabelli: 390,300 shares, representing 0.04% of the company’s shares outstanding and 0.05% of his total portfolio.

3. Jim Simons: 127,800 shares, representing 0.01% of the company’s shares outstanding as well as his total portfolio.

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



Sony has a market cap of $17.91 billion. Its shares are currently trading at around $17.72 with a P/E ratio of 35.10, a P/S ratio of 0.30 and a P/B ratio of 0.80. The company also currently holds a dividend yield of 1.60%.

Dole Food (DOLE)

Gabelli’s second largest increase was in Dole Food, where he upped his stake by 3124.42%. The guru purchased a total of 999,814 shares in the third quarter price range of $12.73 to $13.80. The estimated average quarterly price of Dole was $13.26 per share, and since then the price per share has increased approximately 2.9%.

Gabelli now maintains at least 1,031,814 shares of the company’s stock. His position represents 0.083% of his total portfolio and 1.15% of the company’s shares outstanding.

Gabelli’s historical holding history:



Dole Food is a producer and marketer of fruit and vegetables, including an expanding line of value-added products. It markets packaged and frozen food.

Dole Food’s historical revenue and net income:



The analysis reports that the company’s price is near a 5-year high, its revenue has been in decline over the past five years and its gross and operating margins have also been in long-term decline.

The top guru shareholders of Dole:

1. Mario Gabelli: 1,031,814 shares, representing 1.15% of the company’s shares outstanding.

2. Michael Price: 901,869 shares, representing 0.45% of the company’s shares outstanding.

3. Jeremy Grantham: 307,893 shares, representing 0.34% of the company’s shares outstanding.

Dole Food has a market cap of $1.23 billion. Its shares are currently being traded at around $13.64 with a P/S ratio of 0.39 and a P/B ratio of 1.44.

Hewlett-Packard (HPQ)

Gabelli made his third largest increase in HP, where he added 253,900 shares to his stake. His recent move represents a 2418.1% increase in his position. He bought these shares in the third quarter price range of $20.99 to $27.30, with an estimated average quarterly price of $24.32. Since then the price per share has increased approximately 8.1%.

Gabelli now holds on to 264,400 shares of Hewlett-Packard shares, representing 0.33% of his total portfolio and 0.01% of the company’s shares outstanding.

Gabelli’s historical holding history:



Hewlett-Packard is a global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.

Hewlett-Packard’s historical revenue and net income:



The analysis on HP reports that the company’s revenue has been in decline over the past year, its dividend yield is near a 1-year low and its price is near a 1-year high. Also the analysis reports that HP has issued $5.1 billion of debt over the past three year.

The top guru shareholders of HP:

1. Dodge & Cox: 163,003,351 shares, representing 8.45% of the company’s shares outstanding and 4.8% of their total portfolio.

2. Richard Pzena: 30,983,162 shares, representing 1.61% of the company’s shares outstanding and 4.2% of his total portfolio.

3. Jeremy Grantham: 30,121,915 shares, representing 1.56% of the company’s shares outstanding and 1.9% of the company’s shares outstanding.

Hewlett-Packard has a market cap of $50.66 billion. Its shares are currently trading at around $6.36 per share with a P/S ratio of 0.50 and a P/B ratio of 2.00.

Dominion Diamond (DDC)

The guru’s fourth largest increase of the quarter goes to Dominion Diamond Corp. The guru increased his position 409.09% by purchasing 280,000 shares. He bought these shares in the third quarter price range of $12.19 to $14.85, with an estimated average quarterly price of $13.49. Since then the price per share has increased a slight 0.6%.

Gabelli now holds on to 280,000 shares of Dominion Diamond, representing 0.02% of his entire holdings and 0.33% of the company’s shares outstanding.

Gabelli’s historical holding history:



The company is involved in the mining and marketing of rough diamonds. It has ownership interests in two mines namely: Ekati Diamond Mine and Diavik Diamond Mine.

Dominion Diamond’s historical revenue and net income:



The analysis on Dominion reports that the company’s revenue has been in decline over the past five years, its Piotroski F-Score is high. Also the analysis notes that the company’s P/S ratio is near a 1-year low.

The Peter Lynch Chart suggests that the company is undervalued:



Dominion Diamond Corp has a market cap of $1.15 billion. Its shares are currently trading at around $13.56 with a P/E ratio of 2.30, a P/S ratio of 2.00 and a P/B ratio of 0.90.

AZZ Inc. (AZZ)

Gabelli’s fifth largest increase of the quarter was in AZZ Inc. where he upped his position by 371.55%. The guru purchased 43,100 shares in the third quarter price range of $35.31 to $43.86, with an estimated average quarterly price of $38.55. Since then the price per share has jumped up approximately 15.7%.

This is the first time Gabelli has made a move in his holdings since 2010Q4. The guru now holds on to 54,700 shares of AZZ stock, representing 0.013% of his total portfolio holdings and 0.21% of the company’s shares outstanding.

Gabelli’s historical holding history:



AZZ is an electrical equipment and components manufacturer, serving the global markets of power generation, transmission and distribution, and the general industrial markets, and a provider of hot dip galvanizing services to the steel fabrication market nationwide.

AZZ’s historical revenue and net income:



The analysis on AZZ reports that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its price is nearing a 10-year high.

The top guru shareholders of AZZ:

1. RS Investment Management: 755,239 shares, representing 2.96% of the company’s shares out.

2. Chuck Royce: 752,860 shares, representing 2.95% of the company’s shares outstanding.

3. John Keeley: 573,700 shares, representing 2.25% of the company’s shares outstanding.

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



AZZ has a market cap of $1.17 billion. Its shares are currently trading at around $45.73 with a P/E ratio of 19.70, a P/S ratio of 1.77 and a P/B ratio of 3.25.

Check out Mario Gabelli’s complete third quarter portfolio here.

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Rating: 3.7/5 (3 votes)

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