John Rogers Adds to Perceptron and CPI Aerostructures
John Rogers is the Founder, Chairman, CEO and CIO of Ariel Capital Management. Rogers manages Ariel’s small and mid-cap institutional portfolios as well as the Ariel Fund (ARGFX) and Ariel Appreciation Fund (CAAPX). The guru focuses his investment selections on small and medium-sized companies whose share prices are undervalued, and his fund seeks to purchase companies whose prospects include high barriers to entry, sustainable competitive advantages, and predictable fundamentals that allow for double-digit cash earnings growth.
Rogers upped his stake in Perceptron on Nov. 30 by 36.63% by purchasing a total of 244,198 shares of the company’s stock. The guru bought these shares at an average price of $10.02 per share. Since his buy the price per share is trading down approximately -2%.
Rogers’ updated holdings in the company gives him control of 10.63% of the company’s shares outstanding. As of the third quarter, Rogers’ holding in Perceptron only made up for 0.1% of his total portfolio. The guru now holds on to 910,939 shares of the company’s stock.
Roger’s holding history as of the third quarter:
The guru bought in to Perceptron in the second quarter of 2009 and has since then seen average gains of 96% on shares bought since then.
John Rogers is not the only guru to give Perceptron another glance—Jim Simons and Chuck Royce were also holding shares of Perceptron in their latest 13F filings.
Perceptron develops, produces, and sells non-contact measurement and inspection solutions for industrial applications. The company's products provide solutions for manufacturing process control as well as sensor and software technologies for non-contact measurement and inspection applications.
Perceptron’s historical revenue and net income:
The analysis on Perceptron reports that the company that the company holds no debt, that its revenue growth has slowed down over the past year and that its dividend yield is sitting near a 1-year low.
Perceptron has recently been recognized by the General Motors Company (GM) for its products and for providing state-of-the-art measurement technology on its new Corvette program. GM reported that Perceptron’s technologies enabled the company to build the “strongest and most precisely built Corvette in its six-decade history.” They system built for GM contains a mix of stationary and robot-mounted laser-triangulation sensors that monitor features and collect dimensional measurements on every vehicle.
The company recently released its first quarter 2014 results which reported:
· Net sales of $12.4 million, up from $12.1 million last year.
· Net loss of $588,000, or ($0.07) per share, down from a net income of $655,000, or $0.08, last year.
· Recorded income of $26,000, net of tax, from the sale of its Commercial Products Business Unit.
· Gross margin declined from 46.1% to 34.7%
The Peter Lynch Chart suggests that the company is currently overvalued:
Perceptron has a market cap of $89 million. Its shares are currently trading at around $10.01 with a P/E ratio of 17.40, a P/S ratio of 1.40 and a P/B ratio of 1.50.
CPI Aerostructures (CVU)
John Rogers also increased his holdings in CPI Aerostructures on Nov. 30. The guru upped his stake 20.99% by adding 146,750 shares to his holdings. He bought these shares at an average price of $14.56 per share. Since his buy the price per share is up about 3%.
Rogers’ updated position gives him ownership of 10.08% of the company’s shares outstanding. As of the close of the third quarter CPI Aerostructures only made up for 0.12% of Rogers’ total assets managed. The guru now holds on to 845,776 shares of the company’s stock.
Rogers’ holding history as of the third quarter:
Rogers bought in to CPI Aerostructures in the second quarter of 2013 and has since then seen average gains of 40%.
Chuck Royce and Jim Simons also agree with Rogers on CPI Aerostructures. Both Royce and Simons hold a position in the company as of the close of the third quarter.
CPI Aerostructures is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force and other branches of the U.S. armed forces, either as a prime contractor or as a subcontractor to other defense prime contractors. It also acts as a subcontractor to prime aircraft manufacturers in the production of commercial aircraft parts.
CPI Aerostructures’ historical revenue and net income:
The company was recently a recipient of Penton’s Aviation Week’s best-in-class “A&D Companies to Watch” Award. The “A&D Companies to Watch” program was developed to serve the strategic sourcing needs of aerospace and defense supply chain and engineering and technology executives by providing a listing of 20 select companies with annual revenues of less than $100 million.
The company’s third quarter results reported:
· Revenue of $20.665 million, down from $21.341 million last year.
· Gross margin of 21.7%, down from 27.2%.
· Net income of $1,911,100, or $0.23 per diluted share, down from $2,795,437, or $0.33 per share last year.
· $83.1 million in new contract awards, up 30% from last year.
The Peter Lynch Chart suggests that the company is currently undervalued:
CPI Aerostructures has a market cap of $125.8 million. Its shares are currently trading at around $14.96 with a P/E ratio of 14.30, a P/S ratio of 1.40 and a P/B ratio of 1.40. The company had an annual average earnings growth of 32.10% over the past five years.
Check out all of John Rogers’ real time picks and his third quarter portfolio here.
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