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Mario Gabelli’s Two Real-Time Reductions

December 21, 2013 | About:
Sally Jones

Sally Jones

49 followers

According to GuruFocus Real Time Picks, GAMCO Investors’ chairman and CEO Mario Gabelli just reduced his positions in Ascent Capital Group Inc. (ASCMA) and Biglari Holdings Inc. (BH). After making the decreases, Gabelli is still the largest guru stakeholder of both companies. The GAMCO Investors portfolio shows 820 stocks, 55 of them new, with a total value of $17.02 billion. GAMCO’s quarter-over- quarter turnover is 6%. As of the third quarter of 2013, the portfolio’s top three sector weightings were: industrials at 24.6%, consumer cyclical at 20.3% and consumer defensive at 10.8%.Here’s a look at Mario Gabelli’s real-time reductions.

Ascent Capital Group Inc. (ASCMA): Reduced

Impacts Portfolio: -0.03%

Up 40% over 12 months, Ascent Capital Group Inc. has a market cap of $1.22 billion; its shares were traded at around $86.67 with a P/B ratio of 2.10. The company does not pay a dividend.

Ascent Capital Group Inc. is a holding company and its assets primarily consist of its wholly-owned subsidiary, Monitronics International Inc. Monitronics provides security alarm monitoring and related services to residential and business subscribers throughout the U.S. and parts of Canada.

Monitronics monitors signals arising from burglaries, fires and other events picked up through security systems installed at subscriber locations. Most of the company revenues are derived from monthly recurring revenues under security alarm monitoring contracts with over a million residential and commercial customers.Ascent Capital Group reported third quarter 2013 financial results with net revenue up 36.8%, adjusted EBITDA up 35.2%, and Monitronics subscribers up 45.2% year-over-year. Monitronics also completed the acquisition of Security Networks in the third quarter.

Guru Action: As of Dec. 12, 2013, Mario Gabelli reduced his position by 5.18%, selling shares in the average price range of $81.14. The current share price is around $86.67 with a change from average up 7%. Gabelli’s current shares are 1,009,733.Gabelli’s ASCMA holding history:

1387585370711.png

Over an amazing trading history of gains, Gabelli has averaged a gain of 263% on 1,581,781 shares bought at an average price of $23.85 per share. On shares sold, he averaged a gain of 117% on 516,881 shares sold at an average price of $39.94 per share.Tracking historical share price, revenue and net income:

1387585467153.png/

Gabelli is one of four guru stakeholders of ASCMA and there is some recent insider selling.

Biglari Holdings Inc. (BH): Reduced

Up 28% over 12 months, Biglari Holdings Inc. has a market cap of $858.3 million; its shares were traded at around $498.52 with a P/E ratio of 4.90. The company does not pay a dividend.Biglari Holdings Inc. is a diversified holding company engaged in a number of diverse business activities and currently engaged in the franchising and operating of restaurants. Biglari’s reportable segments are Restaurant Operations and Investment Management. The company's Restaurant Operations activities are conducted through two restaurant concepts, Steak ‘n Shake and Western Sizzlin’. Steak ‘n Shake operates 413 company-operated restaurants and 76 franchised units in 22 states; Western Sizzlin’ operates five company-operated restaurants and 89 franchised units in 17 states.The company reported financial results for its fiscal third quarter of 2013 with net earnings of $106,704,000 up from the prior fiscal year’s same quarter at $4,853,000.

The GuruFocus analysis shows seven warning signs for BH.

Guru Action: As of Dec. 9, 2013, Mario Gabelli reduced his position by 0.31%, selling shares in the average price range of $495.72. The current share price is around $498.52 with a change from average up 1%. Gabelli’s current BH shares are 100,422.Overall, Gabelli has averaged a gain of 42% on 118,454 shares bought at an average price of $350.28 per share. On shares sold, he averaged a gain of 27% on 17,720 shares sold at an average price of $391.64 per share.

Gabelli is one of two guru stakeholders and there is very active insider buying of BH.Tracking historical share price, revenue and net income:

1387586796934.png

Here is the complete portfolio of Mario Gabelli.

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

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: 3.0/5 (4 votes)

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