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Robert Olstein on Hedge Fund regulations. Recent Olstein buys.

January 15, 2010 | About:
Karl

Karl

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Robert Olstein, of Olstein All Cap Value Fund made some comments on Bloomberg television this week. He stated that he is skeptical on bank stocks, but is interested in those companies that are deleveraging or talking about deleveraging. He has been a buyer of ABB Ltd (ticker: ABB), Harman International Industries Inc (ticker: HAR), PetSmart, Inc (ticker: PETM), Steris Corporation (ticker: STE), Sealed Air Corp (ticker: SEE) and Becton, Dickinson and Co (ticker: BDX) which are highlighted below.

Olstein commented that if you are a bank or brokerage firm that takes customer deposits, there needs to be controls on leverage. Also, any talk that hedge funds should not be better regulated is non-sense. The financial leverage in the US is systemic. If things do not become better regulated, the next time something happens the fallout will not be saveable.



Olstein also said that analyst estimate of earnings are to pessimistic and that he expects to see lot of earnings surprises going forward.

Robert A. Olstein is the Chairman and Chief Investment Officer of the Olstein Financial Alert Fund (OFALX). He is considered to be an expert in corporate financial disclosure and reporting practices. Since inception in 1995, his Olstein Financial Alert Fund had returned an annualized 13.82% through the end of 2007. Robert Olstein selects stocks by looking behind the numbers. He emphasizes a detailed look behind the numbers of a company's financial statement to assess the company's financial strength and assess potential downside risk.

Olstein has been a recent buyer of the following companies. Perhaps a bargain can be found here:

ABB Ltd (ticker: ABB)

ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs more than 110,000 people. Abb Ltd. has a market cap of $47.02 billion; its shares were traded at around $20.24 with a P/E ratio of 18.1 and P/S ratio of 1.4. The dividend yield of Abb Ltd. stocks is 2.1%. Abb Ltd. had an annual average earning growth of 30.3% over the past 5 years.

Robert Olstein bought 428,000 shares in the quarter that ended on 09/30/2009, which is 1.6% of the $537 million portfolio of Olstein Financial Alert Fund.

Harman International Industries Inc (ticker: HAR)

Harman International Industries, Incorporated is a leading manufacturer of high-quality, high-fidelity audio products and electronic systems for the automotive, consumer and professional markets. Harman International is a worldwide leader in the manufacture of high-quality, high-fidelity audio and electronic products for automotive, consumer and professional use. The company's legendary brands have taken a leading role in the creation and innovation of progressive technologies, from the world's first car radio to today's most revolutionary infotainment systems. Our commitment to quality and innovation can be found everywhere, from theaters and stadiums to homes and automobiles, and continues to redefine the boundaries of technology and entertainment. Through internal development and a series of carefully selected acquisitions, they have built up a broad range of renowned brands and products in our principal markets, and a substantial and experienced digital engineering capabilit Harman International Industries Inc. has a market cap of $2.68 billion; its shares were traded at around $38.6 with and P/S ratio of 0.9. Harman International Industries Inc. had an annual average earning growth of 16.8% over the past 10 years.

Robert Olstein bought 210,000 shares in the quarter that ended on 09/30/2009, which is 1.33% of the $537 million portfolio of Olstein Financial Alert Fund.

PetSmart, Inc (ticker: PETM)

PETSMART, INC. is a leading operator of superstores specializing in pet food, supplies and services in the United States. Petsmart Inc. has a market cap of $3.31 billion; its shares were traded at around $26.78 with a P/E ratio of 16.6 and P/S ratio of 0.7. The dividend yield of Petsmart Inc. stocks is 1.5%. Petsmart Inc. had an annual average earning growth of 29.3% over the past 10 years. GuruFocus rated Petsmart Inc. the business predictability rank of 3.5-star.

Robert Olstein bought 299,800 shares in the quarter that ended on 09/30/2009, which is 1.22% of the $537 million portfolio of Olstein Financial Alert Fund.

Becton, Dickinson and Co (ticker: BDX)

Becton, Dickinson and Co. is engaged principally in the manufacture and sale of a broad line of supplies, devices and systems used by health care professionals, medical research institutions and the general public. BD's operations consist of three worldwide business segments: Medical Systems, Biosciences, and Preanalytical Solutions. Becton Dickinson And Company has a market cap of $18.25 billion; its shares were traded at around $77.04 with a P/E ratio of 15.5 and P/S ratio of 2.6. The dividend yield of Becton Dickinson And Company stocks is 1.9%. Becton Dickinson And Company had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Becton Dickinson And Company the business predictability rank of 4-star.

Robert Olstein bought 94,000 shares in the quarter that ended on 09/30/2009, which is 1.22% of the $537 million portfolio of Olstein Financial Alert Fund.

Steris Corporation (ticker: STE)

STERIS Corporation is a leading provider of infection prevention, contamination prevention, and surgical support systems, products, services, and technologies to healthcare, scientific, research, and industrial Customers throughout the world. The Company has over 4,000 Associates (employees) worldwide, including more than 1,200 direct sales, service, and field support personnel. Customer Support facilities are located in major global market centers with manufacturing operations in theUnited States, Canada, Germany, and Finland. Steris Corp. has a market cap of $1.62 billion; its shares were traded at around $27.6 with a P/E ratio of 13.8 and P/S ratio of 1.2. The dividend yield of Steris Corp. stocks is 1.6%. Steris Corp. had an annual average earning growth of 10.1% over the past 10 years.

Robert Olstein bought 159,000 shares in the quarter that ended on 09/30/2009, which is 0.9% of the $537 million portfolio of Olstein Financial Alert Fund.

Sealed Air Corp (ticker: SEE)

Sealed Air Corporation is a global leader in performance solutions for food, protective and specialty packaging. They offer a broad range of differentiated products to a diverse set of markets. Their products provide clear, measurable benefits and create value by solving their customers' problems. Sealed Air Corp. has a market cap of $3.39 billion; its shares were traded at around $21.32 with a P/E ratio of 14.9 and P/S ratio of 0.7. The dividend yield of Sealed Air Corp. stocks is 2.2%. Sealed Air Corp. had an annual average earning growth of 4.8% over the past 10 years. GuruFocus rated Sealed Air Corp. the business predictability rank of 2-star.

Robert Olstein bought 233,000 shares in the quarter that ended on 09/30/2009, which is 0.85% of the $537 million portfolio of Olstein Financial Alert Fund.

About the author:

Karl
Karl is currently a software engineer in Connecticut with a bachelors of science in electrical engineering from Clarkson University. He has been investing since 2001 and interested in value investing since 2005. Karl is continually striving to learn more about investment.

Rating: 3.2/5 (9 votes)

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