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Gabelli Makes Four Real Time Adjustments

January 28, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

As reported by GuruFocus Real Time Picks yesterday, Guru Mario Gabelli (Trades, Portfolio) has made four real time adjustments to three different companies over the past couple of weeks.  Real time picks report the stock purchases or sells made by the gurus of companies which they hold on to greater than a 5% stake. 

Ampco-Pittsburgh (AP)

The guru made the smallest change in his holdings in Ampco-Pittsburgh on Jan. 27.  Gabelli cut his holdings -0.17%, selling a minor 1,803 shares of the company’s stock.  He sold these shares at $17.33 per share, and since then the price per share is up about 1% to $17.45 per share. 

Gabelli now holds on to 1,086,033 shares of the company’s stock, giving him control of 10.48% of the company’s shares outstanding. Despite his sell of Ampco-Pittsburgh stock, his remaining position keeps him as the company’s largest guru shareholder.

Gabelli’s holding history as of the third quarter:

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Ampco-Pittsburgh classifies its businesses in two segments: Forged and Cast Rolls and Air and Liquid Processing.  Under these two branches the company maintains five subsidiaries including Union Electric Steel Corporation, Union Electric Steel UK Limited, Aerofin Division, Buffalo Air Handling Division and Buffalo Pumps Division.

Ampco-Pittsburgh’s historical revenue and net income:

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The company most recently declared a dividend of $0.18 per share in December which is to be paid on Jan. 31.   

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

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Ampco-Pittsburgh has a market cap of $181.452 million.  Its shares are trading at around $17.60 with a P/E ratio of 10.60 and a P/S ratio of 0.65.  The dividend yield of the company is currently at 4.11%.  Ampco-Pittsburgh Corporation had an annual average earnings growth of 16.80% over the past ten years.

Bon-Ton Stores (BONT)

The guru made two increases in his holdings of Bon-Ton Stores over the past couple of weeks.  Gabelli made an increase on Jan. 17 when he upped his stake 8.13% by purchasing 52,603 shares.  He bought those shares at $11.51 per share and since then the price per share has dropped -5%.

His second increase came on Jan. 24 when he increased his position an additional 20%.  The guru purchased 140,000 shares of the company’s stock at $11.00 per share, and since this increase the price per share has dropped a slight -1% to $10.89 per share. 

Gabelli now holds on to 840,000 shares of Bon-Ton Stores stock, representing 4.1% of the company’s shares outstanding.  The guru has steadily been increasing his position in the store since Nov. 2013. 

Gabelli’s historical holding history as of the third quarter:

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Bon-Ton Stores is a regional department store operator in terms of sales in the United States, offering an assortment of brand-name fashion apparel and accessories for women, men and children as well as cosmetics, home furnishings and other goods.

Bon-Ton’s historical revenue and net income:

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The company announced earlier this month that its December comparable store sales results were significantly and negatively impacted by unfavorable winter weather conditions in its markets.  The company expects its full-year fiscal comparable store sales to decrease about 3.50%, and as a result of this they adjusted the fiscal 2013 guidance for adjusted EBITDA to $160 to $170 million.

The analysis on Bon-Ton reports that the company’s revenue has been in decline over the past five years and it has a high short interest—29.25% of the float is shorted.  On the other hand the analysis notes that the company’s Piotroski F-Score is high, indicating a healthy situation, its dividend yield is at a 1-year high and its P/S ratio is near a 1-year low.

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

1390944031120.png

Bon-Ton Stores has a market cap of $220.679 million.  Its shares are currently trading at around $10.89 with a P/E ratio of 19.10, a P/S ratio of 0.07 and a P/B ratio of 4.40.  The company had an annual average earnings growth of 8.40% over the past ten years.

Coleman Cable (CCIX)

The last move Gabelli made over the past couple of weeks was in the company Coleman Cable.  The guru made his first buy into the company, purchasing 729,100 shares.  He bought these shares at an average price of $26.23 per share, and now the company is trading slightly lower at $26.21 per share.

Gabelli’s new holding in the company gives him control of 3.95% of the company’s shares outstanding.  His buy also makes him the largest guru shareholder of CCIX stock. 

Coleman Cable is a designer, developer, manufacturer and supplier of electrical wire and cable products for consumer, commercial and industrial applications, with operations mainly in U.S. and, to a lesser degree, Honduras and Canada.

Coleman Cable’s historical revenue and net income:

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The analysis on Coleman Cable reports that the company’s revenue has slowed down over the past year, its price is sitting near a 5-year high and that its asset growth is currently faster than its revenue growth.

The company announced on Jan. 15 the expiration of the waiting period under the HSR Act relating to the previously announced tender offer for all outstanding shares of common stock of Coleman by Southwire for $26.25 per share in cash, net to the seller in cash, without interest, less any applicable withholding taxes. Accordingly, the tender offer condition relating to the expiration of the applicable waiting period under the HSR Act has been satisfied.

The tender offer and withdrawal rights are scheduled to expire at 12:00 midnight, New York City time, on February 3, 2014unless extended or earlier terminated in accordance with the terms of the merger agreement, dated as of December 20, 2013, among Southwire, Coleman and Purchaser.

You can read more about this transaction here.

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

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Coleman Cable has a market cap of $483.211 million.  Its shares are currently trading at around $26.21 with a P/E ratio of 23.10, a P/S ratio of 0.50 and a P/B ratio of 6.50. 

You can check out more of Mario Gabelli’s real time picks here.  Also check out his third quarter holdings here.

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