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GuruFocus Real Time Picks of the Week

January 31, 2014 | About:
Monica Wolfe

Monica Wolfe

121 followers

The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. The “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. This week we saw notable increases in Real Time activity from Mario Gabelli (Trades, Portfolio), Larry Robbins (Trades, Portfolio) and Bill Ackman (Trades, Portfolio).

Mario Gabelli (Trades, Portfolio)

As reported by GuruFocus Real Time Picks Guru Mario Gabelli (Trades, Portfolio) has made four real time adjustments to three different companies over the past couple of weeks. 

The guru made the smallest change in his holdings in Ampco-Pittsburgh (AP) 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 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.

The guru made two increases in his holdings of Bon-Ton Stores (BONT) 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 Peter Lynch Chart suggests that the company is currently overvalued:

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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.

The last move Gabelli made over the past couple of weeks was in the company Coleman Cable (CCIX).  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 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.

Larry Robbins (Trades, Portfolio)

Over the past week Larry Robbins (Trades, Portfolio) increased his holdings in Community Health Systems (CYH).  The guru upped his stake 27.67% by purchasing a total of 2,621,125 shares of the company’s stock.  He bought these shares at an average price of $40.48 per share, and since then the price per share has stayed flat. 

As of this most recent buy Larry Robbins (Trades, Portfolio) holds on to 12,093,795 shares of the company’s stock, representing 12.76% of the company’s shares outstanding.

Robbins’ holding history as of the third quarter:

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Community Health Systems provides healthcare services through the hospitals that it owns and operates in non-urban and selected urban markets. The company generates revenue primarily by providing a broad range of general hospital healthcare services to patients in the communities in which it is located.

Community Health’s historical revenue and net income:

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The analysis on the company reports that the company has shown predictable revenue and earnings growth, its operating margin is expanding and its price is near a 1-year low.

On Jan. 27, the company announced that it has successfully acquired Health Management Associates.  HMA shareholders will receive $10.50 per share in cash as well as 0.06942 shares of CHS common stock for each HMA share they previously held. 

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

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Community Health Systems has a market cap of $4 billion.  Its shares are currently trading at around $42.13 with a P/E ratio of 22.30, a P/S ratio of 0.30 and a P/B ratio of 1.30.  The company had an annual average earnings growth of 23.40% over the past ten years.

GuruFocus rated Community Health Systems the business predictability rank of 4-star.

Bill Ackman (Trades, Portfolio)

Over the past week Bill Ackman (Trades, Portfolio) reported a new position in the company Platform Specialty Products Corp (PAH).  The guru bought a total of 33,333,332 shares of the company at an average price of $14.90 per share.  Since his buy the price per share has dropped -6% to $14.00 per share. 

Ackman reported this buy on the day the company began trading on the NYSE, and cancelled its listing on the London Stock Exchange. You can read the company’s press release here.

Platform Specialty Products is a global producer of high technology specialty chemical products and provider of technical services.  The company manufactures specialty chemicals, which they create by blending raw materials, into multi-step technological processes. 

Platform Specialty Products’ historical pricing:

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The company initially held its IPO on the London Stock Exchange in May 2013, and then it acquired the Miami-based chemical maker company MacDermid for $1.8 billion in October and then formally changed its name to Platform Acquisition Holdings which is now trading on the New York Stock Exchange. 

Platform is expected to have an enterprise value between $750 million and $2 billion.  The company has a market cap of $1.45 billion and its shares are currently trading at around $14.00.

Check out more guru real time picks here.

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