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Guru Robert Olstein's Top Five Fourth Quarter Stocks

February 12, 2014 | About:
Monica Wolfe

Monica Wolfe

130 followers

Robert Olstein is the chairman and chief investment officer of the Olstein Financial Fund. Olstein selects stocks by looking behind the numbers. He emphasizes a detailed look behind the numbers of a company's financial statement to assess the company's financial strength and assess potential downside risk. To be considered for his selection, a company must generate more cash flow than necessary to sustain the business, avoid aggressive accounting practices, demonstrate balance sheet fundamentals that are consistent with his defense first approach and be selling at a discount to the private market value.

Over the past quarter Olstein purchased 10 new stocks bringing his total to 125 stocks valued at $698 million. The following five companies represent Olstein’s top five stock holdings.

Legg Mason (LM)

Robert Olstein (Trades, Portfolio)’s largest holding over the past quarter was in Legg Mason where he held on to 327,400 shares of the company’s stock. This position makes up for 2% of his total portfolio as well as 0.27% of the company’s shares outstanding.

During the fourth quarter Olstein reduced his position -9.23% by selling a total of 33,300 shares of the company’s stock. He sold these shares near the estimated average quarterly price of $38.79 per share, and from this average price, the price per share is trading up about 9.3%.

Olstein’s historical holding history:

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Legg Mason, through its subsidiaries, provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles. It offers these products and services directly and through various financial intermediaries.

Legg Mason’s historical revenue and net income:

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The analysis on Legg Mason reports that the company’s revenue has been in decline over the past five years, its dividend yield is near a 2-year low and its price is near a 5-year high.

As of the most recent data reported, there are 13 gurus holding on to a position in Legg Mason. Check out their holdings here.

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

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Legg Mason has a market cap of $5.19 billion. Its shares are currently trading at around $43.54 with a P/S ratio of 2.00 and a P/B ratio of 1.10.

Jones Lang LaSalle (JLL)

The guru’s second largest holding is in Jones Lang LaSalle where he maintains 127,000 shares of the company’s stock. This position makes up for 1.9% of his total holdings as well as 0.29% of the company’s shares outstanding.

Over the past quarter Olstein cut his holdings a minor -3.05% by selling 4,000 shares of Jones Lang LaSalle stock. He sold these shares near the estimated average fourth quarter price of $93.87 per share. Since then the price per share has increased approximately 25.6%.

Olstein’s historical holding history:

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Jones Lang LaSalle is a financial and professional services firm specializing in real estate. It offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate.

Jones Lang LaSalle’s historical revenue and earnings growth:

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The analysis on Jones Lang LaSalle reports that the company’s dividend yield is near a 2-year low, its price is near a 10-year high and over the past three years the company has issued $478.911 million of debt.

As of the most recent data, there were 12 gurus with a position in Jones Lang LaSalle. Check out their holdings here.

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

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Jones Lang LaSalle has a market cap of $5.29 billion. Its shares are currently trading at around $119.00 with a P/E ratio of 23.50, a P/S ratio of 1.30 and a P/B ratio of 2.60. The company had an annual average earnings growth of 9% over the past ten years.

Macy’s (M)

The guru’s third largest holding goes to Macy’s where he holds on to 238,000 shares of the company’s stock. This position makes up for 1.8% of his total holdings as well as 0.06% of the company’s shares outstanding.

During the fourth quarter Olstein upped his stake 2.15% by purchasing 5,000 shares of Macy’s. He bought these shares at around the average quarterly price of $48.46 per share. Since then the price per share has jumped up approximately 10.5%.

Olstein’s holding history as of the fourth quarter:

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Macy's is an omnichannel retail store that sells a range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.

Macy’s historical revenue and net income:

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The analysis on Macy’s reports that the company’s Piotroski F-Score is high, indicating a healthy situation for the company, and that the company’s price and P/B ratio are both trading near a 10-year high.

Check out the gurus with ownership in Macy’s stock.

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

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Macy’s has a market cap of $19.49 billion. Its shares are currently trading at around $52.88 with a P/E ratio of 14.70, a P/S ratio of 0.80 and a P/B ratio of 3.70. The dividend yield of Macy’s is currently at 1.80%.

International Game Technology (IGT)

Robert Olstein (Trades, Portfolio)’s fourth largest position is in International Game Technology where he holds on to 602,200 shares of the company’s stock. This holding makes up for 1.6% of the guru’s total portfolio holdings as well as 0.23% of the company’s shares outstanding.

During the fourth quarter Olstein upped his holdings 69.16% by purchasing 246,200 shares of the company’s stock. He bought these stocks near the average quarterly price of $18.04 per share. From this average price the price per share has dropped -20.3%.

Olstein’s historical holding history:

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International Game Technology is a global gaming company specializing in the design, manufacture, and marketing of electronic gaming equipment and systems products. IGT has two revenue streams within each business segment gaming operations and product sales.

International Game Technology’s historical revenue and net income:

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The analysis on International Game Technology reports that the company’s Piotroski F-Score is high, its dividend yield is near a 3-year high and its P/S and P/B ratios are trading at historic lows.

As of the most updated data there are eleven gurus holding a position in International Game Technology, check out their holding histories here.

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

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International Game Technology has a market cap of $3.57 billion. Its shares are currently trading at around $14.49 with a P/E ratio of 14.20, a P/S ratio of 1.60 and a P/B ratio of 3.10. The company had an annual average earnings growth of 4.70% over the past five years.

Dillard’s (DDS)

Olstein’s fifth largest holding goes to Dillard’s where he owns 114,000 shares of the company’s stock. His position in the company makes up for 1.6% of his total assets managed as well as 0.25% of the company’s shares outstanding.

During the past quarter Olstein increased his holdings 16.33% by purchasing 16,000 shares of the company’s stock. He bought these shares near the average fourth quarter price of $86.60 per share. Since then the price per share has increased approximately 2.7%.

Olstein’s historical holding history:

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Dillard’s historical revenue and earnings growth:

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The analysis on Dillard’s reports that the company has a high Piotroski F-Score, indicating a healthy situation for the company, and it also notes that the company’s price and P/B ratio are both trading at near 10-year highs.

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

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Dillard’s has a market cap of $3.9 billion. Its shares are currently trading at around $88.54 with a P/E ratio of 11.60, a P/S ratio of 0.60 and a P/B ratio of 2.20.

Check out Robert Olstein’s complete portfolio here.

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