Guru David Nierenberg (Trades, Portfolio) is a Yale graduate and the founder of D3 Family Funds. The fund primarily focuses on small-cap companies that have a market capitalization of $1.5 billion or less. The fund currently owns eight stocks with a total value of $69 million.
In the first quarter, Nierenberg added 12,000 shares of Electro Scientific Industries (ESIO, Financial).
Electro Scientific Industries was founded in 1944 and is the global leader in laser-based micro engineering solutions. ESI is a leading supplier of innovative, laser-based manufacturing solutions for the microtechnology industry. The company enables precise engineering and testing of micron to submicron features in semiconductors, LEDs, multi-layer ceramic capacitors, printed circuit boards, flex circuits and other high-value components.
Electro Scientific Industries has a market cap of $222.56 million, an enterprise value of $159.71 million, a P/B ratio of 1.34 and a quick ratio of 2.34.
Electro Scientific Industries has two severe warning signs according to GuruFocus. The company's per share revenue has been in decline over the previous five years at an average rate of 10.3%. The company also had gross margin decline at an average rate of 3.2% over the previous 10 years.
Below is a Peter Lynch Chart for Electro Scientific Industries.
It is possible that Nierenberg added 12,000 shares of Electro Scientific Industries because the company is a global leader in laser-based micro engineering solutions and has 72 years of experience with no debt, which is a good sign.
Cheers to your investment success.
Disclosure: Author does not currently own any shares of this stock.
