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James Li
James Li
Articles (1447)  | Author's Website |

Wallace Weitz Tones Down Intelligent Systems Stake

Guru real-time pick highlight

Wallace Weitz (Trades, Portfolio), manager of the Weitz Value Fund and Weitz Partners Value Fund, disclosed this week that his fund trimmed its holding in Intelligent Systems Corp. (INS) according to GuruFocus Real-Time Picks, a Premium feature.

Weitz combines Benjamin Graham's price sensitivity and insistence on a "margin of safety" with a conviction that qualitative factors that allow a company to have some control over the company's destiny can be more important than statistical factors like historical book value and earnings.

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Transaction details

The fund reported on Oct. 31 a stake of 832,500 common shares in Intelligent Systems, down 165,997 shares, or 16.62%, from the second-quarter holding of 998,497 shares. The stock traded around $37.92 on the transaction date.

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Company description and financial strength summary

The Norcross, Georgia-based software company provides through its subsidiaries technology solutions and processing services to the fintech industry. GuruFocus ranks the company's financial strength 7 out of 10, driven by a strong Altman Z-score of 20 and a debt-to-Ebitda ratio of just 0.16, which outperforms over 88% of global competitors. Despite this, Intelligent Systems' low Piotroski F-score of 3 suggests possible weakness in business operations.

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Stock is fairly valued based on GuruFocus' own valuation method

The GF Value represents the intrinsic value of a stock based on the website's unique method. GuruFocus considers three factors to compute the GF Value: historical price multiples, an internal adjustment factor based on past performance and growth and adjustments for future estimates of business performance.

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Shares of Intelligent Systems traded around $36.60 on Thursday, showing that the stock is fairly valued with a price-to-GF Value ratio of 0.97.

GuruFocus boasts a powerful search bar

As discussed in our November member engagement meeting, the GuruFocus Search Bar allows users to search for stocks, gurus, economic indicators and much more. For example, users can search for the following using the search bar:

  • Intelligent Systems' stock summary page (search by ticker INS or company name).
  • Wallace Weitz (Trades, Portfolio)'s guru page (search by guru name).
  • Gross domestic product (economic indicator).
  • The GuruFocus Real-Time Picks page (specific page).
  • November member engagement meeting (specific article).

Figure 1 shows the location of the GuruFocus Search bar.

Figure 1

See also

Other gurus with holdings in Intelligent Systems include Jim Simons (Trades, Portfolio)' Renaissance Technologies and Chuck Royce (Trades, Portfolio)'s Royce Investment Partners.d0aad6167025a6102abfb5d8acdda69a.png

Weitz's top five holdings as of the second quarter include both classes of Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) shares, Class C shares of Alphabet Inc. (NASDAQ:GOOG), Class C shares of Liberty Broadband Corp. (NASDAQ:LBTYK) and Visa Inc. (NYSE:V).

Disclosure: No positions.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


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