Chuck Royce (Trades, Portfolio) is the president, co-chief investment officer and portfolio manager of Royce & Associates LLC, a hedge fund composed of 1233 stocks and that has a total value of $26,432 million.
He recently increased his stake in Identiv Inc (INVE), a security technology company that provides trust solutions in the connected world, including premises, information and everyday items.
The company has a market cap of 69.4 million and is now trading with a P/B ratio of 1.65 that, compared to other companies in the Global Computer Systems industry, is ranked higher than 64% of them.
The company has deep negative returns (ROE -47%, ROA -24%, ROC -123%) that are ranked lower than 70% of its competitors. Financial strength is doing better of other companies from the same sector and is rated 4/10. Cash to debt is 6.59 and even if 8 years back it was out of debts, now is still outperforming the industry median that is 1.31.
Chuck Royce (Trades, Portfolio) started to buy INVEÂ in 2010 Q3 and since then he increased his stake 10 times and reduced it six times. Now he is holding 1,078,396 shares at an average price of $13.67/share with an average loss of 34%. He is the main holder of the company with 10.03% of shares outstanding and this investment represent the 0.04% of his total assets. The following guru holding INVE is Jim Simons (Trades, Portfolio) that holds 1.49% of shares outstanding after he reduced his stake 2 times during the last 2 quarters. First Eagle Investment (Trades, Portfolio) looks much interested to hold the company, because in the last three quarters it kept on buying shares, reaching now a total of 14,000 (0.13% of shares outstanding).
For the Q1 2015 revenue were $14.9 million, a decrease of 11% as compared with the $16.9 million in the first quarter of 2014 (-23% from the Q4 of 2014), but, as Brian Nelson, the chief financial officer, said, the Q1 of the company is traditionally its slowest quarter of the fiscal year. The gross profit margin for the Q1 2015 had an increase of 41% compared to the same quarter of one year ago, but the adjusted EBITDA is still negative (-$1.9 million, compared with negative adjusted EBITDA of $2 million in the first quarter of 2014).
Jason Hart, chief executive officer, said,
"We humble in our Q1 results. It is not reflective of the internal operations of the business. I think the important highlights as we look forward, the business will have and it will be lumpy. We have always said that we’ll continue to maintain that until we can get to some scale at partnerships one of the many ways that we’re looking at addressing that scale and we’ve invested heavily over the past 12 months to get that. Verizon, Cisco, 3M, Stanley, JCI, Tyco amongst a number of others are our [partners] [Ph] to market."
