Three of Mariko Gordon (Trades, Portfolio)’s five largest second-quarter transactions for Daruma Capital Management were investments in companies that are new to the portfolio – ABM Industries Inc. (ABM, Financial), Comfort Systems USA Inc. (FIX, Financial) and Invacare Corp. (IVC, Financial).
Gordon made investments in two other companies in the second quarter – Bio-Rad Laboratories Inc. (BIO, Financial) and Akamai Technologies Inc. (AKAM, Financial) – that were under 50,000 shares each.
Gordon purchased 911,161 shares in ABM Industries, a New York-based facility management provider that started as a one-person window washing business in San Francisco more than a century ago, for an average price of $33.7 per share. The transaction had a 2.17% impact on the portfolio.
The holding is 1.63% of ABM Industries’ outstanding shares and 2.17% of the guru’s total assets. Keeley Asset Management is ABM Industries’ leading shareholder among the gurus with 959,560 shares, which are 1.72% of ABM Industries’ outstanding shares and 1.46% of Keeley Asset Management’s total assets.
ABM Industries has a price-earnings (P/E) ratio of 36.7, a price-book (P/B) ratio of 2.1 and a price-sales (P/S) ratio of 0.5. GuruFocus gives ABM Industries a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10 with return on equity (ROE) of 5.89% that is lower than 57% of the companies in the Global Business Services industry and return on assets (ROA) of 2.65% that is lower than 56% of the companies in that industry.
ABM Industries sold for $37.84 per share at market close Friday. The DCF Calculator gives ABM Industries a fair value of $11.45.
Gordon acquired 916,153 shares in Comfort Systems, a heating, ventilation and air conditioning (HVAC) company based in Houston, for an average price of $31.86 per share. The deal had a 1.95% impact on the portfolio.
The holding is 2.45% of Comfort Systems’ outstanding shares and 1.95% of the guru’s total assets. Barrow, Hanley, Mewhinney & Strauss is Comfort Systems’ leading shareholder among the gurus with a stake of 2,269,485. That stake is 6.06% of the company’s outstanding shares and 0.11% of the guru’s total assets.
Comfort Systems has a P/E of 18.7, a forward P/E of 17.9, a P/B of 3 and a P/S of 0.7. GuruFocus gives Comfort Systems a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10 with ROE of 17.17% that is higher than 82% of the companies in the Global Engineering & Construction industry and ROA of 8.27% that is higher than 87% of the companies in that industry.
Comfort Systems sold for $28.64 per share Friday. The DCF Calculator gives Comfort Systems a fair value of $16.37.
Gordon invested in a 1,286,495-share stake in Invacare, an Ohio-based medical equipment company, for an average price of $11.81 per share. The transaction had a 1.02% impact on the portfolio.
The stake is 3.96% of Invacare’s outstanding shares and 1.02% of the guru’s total assets. HOTCHKIS & WILEY is Invacare’s leading shareholder among the gurus with a stake of 1,397,105 shares, which is 4.3% of Invacare’s outstanding shares and 0.07% of the guru’s total assets.
Invacare has a P/B of 0.8 and a P/S of 0.4. GuruFocus gives Invacare a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10 with ROE of -6.46% that is lower than 59% of the companies in the Global Medical Devices industry and ROA of -3.40% that is lower than 55% of the companies in that industry.
Invacare sold for $11.67 per share Friday. The DCF Calculator gives Invacare a fair value of $-10.27.
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