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Number-Oriented Guru Robert Olstein's Top Holdings

August 12, 2014 | About:
Monica Wolfe

Monica Wolfe

133 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 eleven new stocks bringing his total to 123 stocks valued at $741 million. The following five companies represent Olstein’s top five stock holdings as of the close of the second quarter.

PetSmart (PETM)

Olstein’s largest holding of the quarter is in PetSmart where he holds on to 261,000 shares of the company’s stock. This position makes up for 2.1% of his total portfolio as well as 0.26% of the company’s shares outstanding

Over the past quarter Olstein nearly doubled his holdings by increasing his position 93.33%. The guru purchased a total of 126,000 shares in the second quarter price range of $55.30 to $70.39. The price per share has since increased 8.5% from the estimated average quarterly price of $63.15 per share.

Robert Olstein (Trades, Portfolio)’s historical holding history:

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PetSmart provides specialty products, services and solutions for the lifetime needs of pets in North America. It offers a broad selection of products for all the life stages of pets, as well as various pet services including professional grooming, training, day camp for dogs and boarding.

PetSmart’s historical revenue and net income:

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The analysis on PetSmart reports that the company’s Piotroski F-Score is high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

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

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PetSmart has a market cap of $6.8 billion. Its shares are currently trading at around $68.53 with a P/E ratio of 16.80, a P/S ratio of 1.00 and a P/B ratio of 6.30. The company had an annual average earnings growth of 13.60% over the past ten years.

GuruFocus rated PetSmart the business predictability rank of 5-star.

International Game Technology (IGT)

Robert Olstein’s second largest position is in International Game Technology where he holds on to 934,700 shares of the company’s stock. This holding makes up for 2% of the guru’s total portfolio holdings as well as 0.38% of the company’s shares outstanding.

During the first quarter Olstein upped his holdings 9.45% by purchasing 251,800 shares of the company’s stock. He bought these stocks near the average quarterly price of $13.53 per share. From this average price the price per share has increased approximately 22%.

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 $4.08 billion. Its shares are currently trading at around $16.51 with a P/E ratio of 17.50, a P/S ratio of 1.90 and a P/B ratio of 3.10. The company had an annual average earnings growth of 5.70% over the past five years.

Legg Mason (LM)

Robert Olstein’s third largest holding over the past quarter was in Legg Mason where he held on to 242,000 shares of the company’s stock. This position makes up for 1.7% of his total portfolio as well as 0.21% of the company’s shares outstanding.

During the first quarter Olstein reduced his position -12.26% by selling a total of 33,800 shares of the company’s stock. He sold these shares near the estimated average quarterly price of $48.21 per share, and from this average price, the price per share is trading down about -0.8%.

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 $5.54 billion. Its shares are currently trading at around $47.85 with a P/S ratio of 2.10 and a P/E ratio of 18.80.

Spirit Airlines (SAVE)

The guru’s fourth largest holding is in Spirit Airlines where he holds on to 182,600 shares of the company’s stock. This position 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 22.55% by purchasing a total of 33,600 shares of the company’s stock. He added these shares in the second quarter price range of $54.22 to $64.78, with an estimated average quarterly price of $58.96 per share. Since then the price per share has increased approximately 14.6%.

Olstein’s historical holding history:

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Spirit Airlines is an ultra-low-cost, low-fare airline based in Fort Lauderdale, Florida that provides affordable travel. Its ultra-low-cost carrier business model allows them to offer a low-priced basic service combined with a range of optional services for additional fees, targeting price-sensitive leisure travelers and travelers.

Spirit Airlines’ historical revenue and net income:

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The analysis on Spirit Airlines reports that the company holds no debt, its price is near a 5-year high and its revenue per share has been in decline over the past five years.

Spirit Airlines has a market cap of $4.9 billion. Its shares are currently trading at around $67.37 with a P/E ratio of 23.70 and a P/S ratio of 2.70.

Macy’s Inc (M)

The guru’s fifth largest holding goes to Macy’s where he holds on to 202,700 shares of the company’s stock. This position makes up for 1.6% of his total holdings as well as 0.06% of the company’s shares outstanding.

During the first quarter Olstein cut his stake -7.02% by selling 15,300 shares of Macy’s. He sold these shares at around the average quarterly price of $58.04 per share. Since then the price per share has jumped up approximately 3.3%.

Olstein’s holding history as of the second 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 overvalued:

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Macy’s has a market cap of $21.67 billion. Its shares are currently trading at around $58.07 with a P/E ratio of 15.20, a P/S ratio of 0.80 and a P/B ratio of 3.70. The company had an annual average earnings growth of 14.50% over the past five years.

Check out Robert Olstein’s complete second quarter portfolio here.

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