Seasoned investor and guru Mario Gabelli (Trades, Portfolio) of GAMCO Investors released his second quarter portfolio yesterday. This most updated portfolio highlights 65 new buys bringing his total to 873 stocks valued at over $19.11 billion. In the guru’s second quarter letter to the shareholders Gabelli notes that the second quarter of 2014 showed quite a few surprises and continues to say that “the level and trajectory of interest rates and inflation are likely to have the biggest impact on future M&A and the stock market.”
The following five companies are where Gabelli made the largest increases in comparison to first quarter holdings. Check out Gabelli’s full list of Q2 2014 stocks here.
Credit Acceptance Corp (CACC)
Over the past quarter, Mario Gabelli (Trades, Portfolio) increased his holdings in Credit Acceptance Corp 1493.51% by purchasing 23,000 shares of the company’s stock. He bought these shares near the estimated average quarterly price of $132.12%. Since then the price per share has dropped approximately -11.1%.
Gabelli now holds on to 24,540 shares of the company’s stock. This position is a small holding for him, representing 0.016% of his total portfolio as well as 0.11% of the company’s shares outstanding.
This is the second increase for Gabelli, and since his original buy of the company’s stock, the price per share has dropped approximately -11%.
Mario Gabelli (Trades, Portfolio)’s holding history as of the close of the second quarter:
Credit Acceptance Corporation is a financing company. The Company offers automobile dealers financing programs that enable them to sell vehicles to consumers regardless of their credit history.
Credit Acceptance Corporation’s historical revenue and net income:
The analysis on Credit Acceptance Corp reports that the company has shown predictable revenue and earnings growth, its operating margin is growing, its price is sitting near a 1-year low and it has issued $720.35 million of debt over the past year.
The Peter Lynch Chart suggests that the company is currently undervalued:
Credit Acceptance Corporation has a market cap of $
Sparton Corp (SPA)
The guru’s second largest increase of the quarter was in Sparton Corp. Gabelli increased his holdings 579.44% by purchasing 95,388 shares of the company’s stock. He bought these shares in the quarterly price range of $24.87 to $30.81, with an estimated average quarterly price of $28.02. Since then the price per share has increased approximately 4.3%.
Gabelli now holds on to 111,850 shares, representing 0.016% of his total portfolio as well as 1.10% of the company’s shares outstanding. Since his original buy in the third quarter of 2012 the price per share has jumped 182.3%.
Gabelli’s historical holding history:
Sparton is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, and field service.
Sparton’s historical revenue and net income:
The analysis on Sparton reports that the company
The Peter Lynch Chart suggests that the company is currently overvalued:
Sparton has a market cap of $295.9 million. Its shares are currently trading at around $29.22 with a P/E ratio of 18.80, a P/S ratio of 0.91 and a P/B ratio of 2.78.
McCormick & Company (MKC)
Over the past quarter Mario Gabelli (Trades, Portfolio) increased his holdings 462.5% by purchasing 18,500 shares of the company’s stock. He purchased these shares near the estimated average quarterly price of $71.39 per share, and since then the price per share has dropped approximately -5.6%.
Gabelli now owns 22,500 shares of McCormick stock, representing a very minor 0.0084% of the guru’s total portfolio as well as 0.02% of the company’s shares outstanding. He has held a stake off and on since the second quarter of 2009. Since he bought back into the company during the first quarter of 2014 the price per share has jumped up approximately 10%.
Gabelli’s historical holding history:
The company manufactures markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry-retail outlets, food manufacturers and foodservice businesses.
McCormick’s historical revenue and net income:
The analysis on McCormick reports that the company’s price is near a 1-year high, it has issued $336.9 million of debt over the past three years and its P/E ratio and P/B ratio are trading at near a 2-year low. The analysis also notes that the company has shown predictable revenue and earnings growth and its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently overvalued:
McCormick & Company has a market cap of $8.76 billion. Its shares are currently trading at around $67.50 with a P/E ratio of 22.40, a P/S ratio of 2.10 and a P/B ratio of 4.50. The company had an annual average earnings growth of 7.80% over the past ten years.
GuruFocus rated the business predictability rank of 5-star.
Dolby Laboratories (DLB)
The guru’s fourth largest increase was in Dolby Laboratories where he upped his holdings by 433.1%. Gabelli added 125,600 shares to his stake in the second quarter price range of $39.01 to $44.77, with an estimated average quarterly price of $41.74 per share. Since then the price per share has increased approximately 7.4%.
Mario Gabelli (Trades, Portfolio) now owns 154,600 shares of Dolby Laboratories, representing 0.035% of his total assets managed as well as 0.15% of the company’s shares outstanding. The guru bought into the stock during the first quarter and since that initial buy the price per share has gained approximately 7%.
Mario Gabelli (Trades, Portfolio)’s historical holding history:
Dolby Laboratories, Inc. develops and delivers innovative products and technologies that are used throughout the entertainment industry to produce a more immersive and enjoyable experience.
Dolby Laboratories’ historical revenue and net income:
The analysis on Dolby reports that the company’s Piotroski F-Score is high, it holds no debt and its price is near a 3-year high. The analysis also notes that the company’s revenue per share has slowed down over the past year.
The Peter Lynch Chart suggests that the company is currently overvalued:
Dolby Laboratories has a market cap of $4.57 billion. Its shares are currently trading at around $44.75 with a P/E ratio of 22.60, a P/S ratio of 4.90 and a P/B ratio of 2.80. The company had an annual average earnings growth of 18.80% over the past ten years.
GuruFocus rated Dolby Laboratories the business predictability rank of 2-star.
DaVita HealthCare Partners (DVA)
Mario Gabelli (Trades, Portfolio)’s fifth largest increase of the quarter goes to DaVita HealthCare Partners. The guru increased his position 330.08% by purchasing 87,745 shares of the company’s stock. He bought these shares near the estimated average quarterly price of $69.49 per share. Since then the price per share has increased approximately 2.9%.
Gabelli now holds on to 114,328 shares of the company’s stock. This position makes up for 0.043% of the guru’s portfolio and 0.05% of the company’s shares outstanding. Since his initial buy during the first quarter the price per share is up about 7.6%.
The guru’s historical holding history:
DaVita HealthCare Partners is a provider of dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease, or ESRD.
DaVita’s historical revenue and net income:
The analysis on DaVita HealthCare reports that the company’s asset growth is faster than its revenue growth, it has shown predictable revenue and earnings growth and its price per share is near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
DaVita Healthcare Partners has a market cap of $15.35 billion. Its shares are currently trading at around #71.45 with a P/E ratio of 22.70, a P/S ratio of 1.30 and a P/B ratio of 3.20. The company had an annual average earnings growth of 15.00% over the past ten years.
GuruFocus rated DaVita the business predictability rank of 4-star.
Check out the entirety of Mario Gabelli’s second quarter holdings here.
