Chuck Royce Trims Stakes in Netgear, Cal-Maine Foods

Guru slashes Netgear holding by 93%

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Jan 22, 2016
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Chuck Royce (Trades, Portfolio), CEO of Royce & Associates LLC, reduced his stake in many stocks during the fourth quarter. He manages a portfolio composed of 1,200 stocks with a total value of $18.8 billion.

The biggest stake reduction was in Netgear Inc.Ă‚ (NTGR) by 93.08% with an impact of 0.22% on the portfolio. The current stake is 0.16% of the portfolio's total assets.

The company has a market cap of $1.17 billion and enterprise value of $903.54 million. GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with negative returns of ROE -1.91% and ROA -1.35% that are underperforming 68% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 7 out of 10, with no debt.

The networking company delivers products to consumers, businesses and service providers.Ă‚

The largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 3.3% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 1.12%, Jim Simons (Trades, Portfolio) with 0.59%, James Barrow (Trades, Portfolio) with 0.46%, David Dreman (Trades, Portfolio) with 0.28% and Chuck Royce (Trades, Portfolio) with 0.23%.

The second-largest reduction was Benchmark Electronics Inc. (BHE) by 58.72% with an impact of 0.38% on the portfolio. The current stake is 0.27% of the investor’s total assets.

The company has a market cap of $973.73 million and an enterprise value of $519.91 million. GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with easy returns of ROE 6.24% and ROA 4.80% that are outperforming 51% of the companies in the Global Contract Manufacturers industry. Financial strength has a rating of 9 out of 10, with a cash-to-debt of 51.22 that is far above the industry median of 1.23.

It is engaged in the business of manufacturing electronics and it provides its services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment, testing and instrumentation products, and telecommunication equipment. In the third quarter, as a result of continued focus on portfolio mix, lean and operational excellence initiatives, and working capital management the company delivered a 30 basis point year-over-year and a 10 basis point quarter-over-quarter improvement in the non-GAAP operating margin.

Chuck Royce (Trades, Portfolio) is the largest shareholder among the gurus with 4.81% of outstanding shares, followed by John Buckingham (Trades, Portfolio) with 0.52%, Jim Simons (Trades, Portfolio) with 0.46%, James Barrow (Trades, Portfolio) with 0.39% and Joel Greenblatt (Trades, Portfolio) with 0.14%.

Royce also reduced his stake in MKS Instruments Inc. (MKSI) by 23.68% with an impact of 0.29% on the portfolio. The current stake is 0.93% of the investor’s total assets.

The company has a market cap of $1.78 billion and enterprise value of $1.39 billion. GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 11.86% and ROA 10.45% that are outperforming 72% of the companies in the Global Scientific & Technical Instruments industry. Financial strength has a rating of 8 out of 10, with a no debts.

The company is a provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters to improve process performance and productivity of advanced manufacturing processes. Third quarter net income was 56 cents per diluted share, compared to 62 cents per diluted share in the second quarter of 2015, and 55 cents per diluted share in the third quarter of 2014.

Royce is the largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 1.3%, Joel Greenblatt (Trades, Portfolio) with 0.93%, Louis Moore Bacon (Trades, Portfolio) with 0.19%, Jim Simons (Trades, Portfolio) with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.

Royce reduced his stake in Applied Industrial Technologies Inc. (AIT) by 27.88% with an impact of 0.23% on the portfolio. The current stake is 0.59% of the investor’s total assets.

The company has a market cap of $1.46 billion and enterprise value of $1.75 billion. GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 14.71% and ROA 7.66% that are outperforming 80% of the companies in the Global Industrial Distribution industry. Financial strength has a rating of 7 out of 10, with a cash-to-debt of 0.18 that is below the industry median 0.61.

The company is an industrial distributor in North America, Australia, and New Zealand, serving MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing) customers in diversified industries.

Royce is the largest shareholder among the gurus with 6.96% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 1.09%, James Barrow (Trades, Portfolio) with 0.28%, Jim Simons (Trades, Portfolio) with 0.08%, Jeremy Grantham (Trades, Portfolio) with 0.03% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

Royce reduced his stake in Cal-Maine Foods Inc. (CALM) by 25.59% with an impact of 0.22% on the portfolio. The current stake is 0.64% of the investor’s total assets.

The company has a market cap of $2.31 billion and enterprise value of $1.92 billion. GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong returns of ROE 47.38% and ROA 34.74% that are outperforming 96% of the companies in the Global Packaged Foods industry. Financial strength has a rating of 9 out of 10, with a cash-to-debt of 14.61 that is far above the industry median of 0.51.

It is a producer and marketer of shell eggs in the U.S. Its main business is the production, grading, packaging, marketing and distribution of shell eggs.

Royce is the largest guru shareholder, followed by Jim Simons (Trades, Portfolio) with 1.18%, John Hussman (Trades, Portfolio) with 0.36%, Steven Cohen (Trades, Portfolio) with 0.28%, Paul Tudor Jones (Trades, Portfolio) with 0.11% and John Burbank (Trades, Portfolio) with 0.09%.

Royce reduced its stake in Movado Group Inc. (MOV) by 51.00% with an impact of 10.17% on the portfolio. The current stake is 0.02% of the investor’s total assets.

The company has a market cap of $1.17 billion and enterprise value of $903.54 million. GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with negative returns of ROE -1.91% and ROA -1.35% that are underperforming 67% of the companies in the Global Communication Equipment industry. Financial strength has a rating of 7 out of 10, with no debt.

It is a networking company that delivers products to consumers, businesses and service providers.Ă‚

Joel Greenblatt (Trades, Portfolio) is the largest shareholder of the company among the gurus with 1.12% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.59%, James Barrow (Trades, Portfolio) with 0.46% and David Dreman (Trades, Portfolio) with 0.28%.

Royce reduced his stake in Minerals Technologies Inc. (MTX) by 24.70% with an impact of 0.17% on the portfolio. The current stake is 0.51% of the investor’s total assets.

The company has a market cap of $1.35 billion and enterprise value of $2.48 billion. GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with strong ROE of 12.65% that is outperforming and a weak ROA 3.50% that is underperforming in the Global Chemicals industry. Financial strength has a rating of 6 out of 10, with a cash-to-debt of 0.17 that is below the industry median of 0.44.

Minerals Technologies is a resource and technology-based company that develops, produces and markets specialty mineral, mineral-based and synthetic mineral products and supporting systems and services. The company has two reportable segments: Specialty Minerals and Refractories. The company delivered a solid performance in the third quarter with four of its five business segments recording double-digit operating margins. Net sales for the second quarter of fiscal 2016 had a growth of 44.2% compared to the second quarter of fiscal 2015, and net income was $2.27 per basic share and $2.26 per diluted share compared to 76 cents per basic and diluted share, for the same quarter of a year before.

Royce is the largest guru shareholder, followed by Jim Simons (Trades, Portfolio) with 0.53%, Mario Gabelli (Trades, Portfolio) with 0.52%, Joel Greenblatt (Trades, Portfolio) with 0.02%, Paul Tudor Jones (Trades, Portfolio) with 0.02% and David Dreman (Trades, Portfolio) with 0.02%.

Royce reduced his stake in Finish Line Inc. (FINL) by 24.11% with an impact of 0.1% on the portfolio. The current stake is 0.32% of the investor’s total assets.

The company has a market cap of $779.8 million and enterprise value of $724.53 million. GuruFocus gives the stock a profitability and growth rating of 6 out of 10, with strong returns of ROE 10.04% and ROA 7.04% that are outperforming 61% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 9 out of 10, with no debt.

The company is a mall-based specialty retailer in the U.S., and operates two retail divisions under the Finish Line brand name or Finish Line and Running Specialty Group or Running Specialty.

Royce is the largest shareholder among the gurus with 7.5% of outstanding shares, followed by Scott Black (Trades, Portfolio) with 0.71%, James Barrow (Trades, Portfolio) with 0.29%, Jim Simons (Trades, Portfolio) with 0.26%, Joel Greenblatt (Trades, Portfolio) with 0.21% and Paul Tudor Jones (Trades, Portfolio) with 0.18%.