The Real Time Picks section of GuruFocus is a great way to ideas from the investing gurus. We currently follow 147 guru portfolios. If a guru makes a purchase or sale of a company in which he or she owns a greater than 5 percent stake, SEC regulations require the trade to be reported within 10 days. Some of the gurus report their trades within 2 days. The type of filing can disclose whether the trade is a passive (Schedule 13G) or activist (Schedule 13D) holding. The link to the filing is available through the Real Time Picks section. The latest picks are from Chuck Royce, Arnold Van Den Berg, Paul Singer, Lee Ainslie, and Mario Gabelli.
Chuck Royce of Royce & Associates LLC initiated a new holding of 100,000 shares of World Energy Solutions Inc (XWES) at the average price of $4.29 on 08/31/2014, as reported in the latest 13G filings by Chuck Royce (Trades, Portfolio). His new position of 100,000 shares represents 0.79 percent of the shares outstanding. World Energy Solutions offers a range of energy management solutions to commercial and industrial businesses, institutions, utilities and governments to reduce their overall energy costs. Revenue per share has been growing at an annual pace of 14.26 percent over the past five years and earnings are crossing into positive territory after being negative for 2013. The stock is very speculative with a market cap of only $54.7 million and a history of negative earnings. Chuck Royce (Trades, Portfolio) previously sold out of his position in the second quarter but now has decided to get back in. Currently he is the only guru holding the stock.
Market Cap: 54.7 million, P/E: 1430.10
Business Predictability: Not Rated, Financial Strength: 6/10, Profitability & Growth: 5/10
Arnold Van Den Berg of Century Management reduced his Layne Christensen Co (LAYN) holding by 0.12 percent at the average price of $11.38 on 08/29/2014, as reported in the latest 13D filings by Arnold Van Den Berg (Trades, Portfolio). He now owns 3,200,757 shares, representing 16.14 percent of the shares outstanding. Layne Christensen is a global water management, construction and drilling company with approximately 100 sales and operations offices located throughout North America, Africa, Australia, Brazil, Uruguay, and Italy and through its affiliates in other Latin American countries. The company is currently not a good investment unless Van Den Berg can make some changes with his activist position. He is currently asking the company to reorganize and consider selling a division to repay debt. The company has lost $6.75 per share over the past twelve months, and its book value per share has nearly dropped in half since 2011.
Market Cap: 217.2 million, P/E: N/A
Business Predictability: 1/5, Financial Strength: 5/10, Profitability & Growth: 4/10
Paul Singer of Elliott Management reduced his Compuware Corp (CPWR) position by 35 percent at the average price of $10.59 on 09/02/2014, as reported in the latest SC filings by Paul Singer (Trades, Portfolio). He now owns 13,682,407 shares, representing 6.23 percent of the shares outstanding. Compuware is a leading provider of software and supporting services in Application Performance Management, Mainframe Productivity and Performance, and Application Services. Elliott management has been pushing for a sale of the company with its activist position. Compuware shareholders will receive $10.43 in cash and soon after expect to receive shares of the spin-off, Covisint (COVS). The total deal was valued at $10.92 when the deal was announced after the market closed on August 29.
Market Cap: 2.34 billion, P/E: 32.90
Business Predictability: 1/5, Financial Strength: 8/10, Profitability & Growth: 5/10
Lee Ainslie of Maverick Capital Ltd added 36.24 percent to his Castlight Health Inc (CSLT) holding at the average price of $11.91 on 08/29/2014, as reported in the latest insider filings by Lee Ainslie (Trades, Portfolio). He now owns 1,144,324 shares, representing 1.28 percent of the shares outstanding. Castlight Health provides cloud-based software for enterprises in the United States. Its software enables enterprises to control their health care costs. The IPO was in March of this year, and the stock has lost two-thirds of its value since. The stock increased nearly 150 percent from its IPO price of $16 to close at $39.80 on its first day of trading. Now it is at $12.98, nearly 20 percent below its IPO price. The stock still looks expensive with a P/S ratio of 47.62. A positive is that the company has no debt on its balance sheet.
Market Cap: 1.17 billion, P/E: N/A
Business Predictability: Not Rated, Financial Strength: 7/10, Profitability & Growth: 2/10
Mario Gabelli of GAMCO Investors added 2.35 percent to his Tredegar Corp (TG) holding at the average price of $21.63 on 09/02/2014, as reported in the latest 13D filings by Mario Gabelli (Trades, Portfolio). He owns 4,225,579 shares, representing 13.05 percent of the shares outstanding. Tredegar is engaged in the manufacture and sale of plastic films and aluminum extrusions worldwide. The stock is currently trading just slightly below its 10-year median P/E ratio of 25.8. Tredegar is experience delays in the startup of its new flexible packaging line in Brazil. The new line should add to its earnings next year.
Market Cap: 683.32 million, P/E: 24.30
Business Predictability: 3/5, Financial Strength: 7/10, Profitability & Growth: 8/10
Mario Gabelli of GAMCO Investors added 85.21 percent to his Medical Action Industries Inc (MDCI) holding at the average price of $13.77 on 09/02/2014, as reported in the latest 13D filings by Mario Gabelli (Trades, Portfolio). He now owns 467,036 shares, representing 2.85 percent of the shares outstanding. Medical Action Industries develops, manufactures, markets and supplies a variety of disposable medical products. The company has agreed to be bought out by Owens & Minor (OMI) in an all-cash deal for $13.80 per share. The stock is trading for $13.79 per share, so there is no upside to the stock. Lawyers are investigating the deal as to whether the board possibly breached its fiduciary duties by not shopping around for a better deal. It is almost certain that nothing will come of it since the buyout offer is a 95.2 percent premium compared to the closing price of $7.07 before the deal was announced in June.
Market Cap: 227.8 million, P/E: 14.10
Business Predictability: 1/5, Financial Strength: 6/10, Profitability & Growth: 7/10
Following the Real Time Picks from the investing gurus is a great way to generate ideas. After gaining a familiarity with the gurus, you can customize your own list of gurus to follow. A great way to familiarize yourself with the different gurus is to go to the List of Gurus page, and there you will get a grid of the different gurus. Move the mouse cursor over the gurus’ names, and you will get a popup with brief information about the gurus that will include a profile and investing philosophy.
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