Turtle Talking John Rogers Adds VSR

On February 28, 2013 the “Patient Investor” John Rogers made his first trade of 2013. The Founder of Ariel Capital Management added Versar, Inc. (VSR) to his portfolio increasing by 8.45%, with current shares of 1,041,547. VSR’s current price is $4.44. Versar, Inc. is a global management company providing engineering, construction, environmental, and professional sservices to a variety of customers in the private sector and the government. As a DoD contractor serving over 20 installations and industrial facilities in the U.S. and abroad, the company also provides national security services through its subsidiary GEOMET Technologies, LLC.

Ariel Capital Management lists VSR as one of 133 stocks in a portfolio with a total value of $4.78 billion and a quarter-over-quarter turnover of 8%. Rogers manages Ariel's small and mid-cap institutional portfolios as well as the Ariel Fund (ARGFX) and Ariel Appreciation Fund (CAAPX). Ariel Capital also lists two new funds: Ariel International Equity, and Ariel Global Equity Fund. John Rogers’s holding history of VSR shows a steadily increasing stake since third quarter 2010.



GuruFocus recently performed a checkup on Versar, Inc., a provider of support for regulatory compliance programs, and found three medium warning signs: Versar’s revenue has been in decline over the past 12 months; VSR price ($4.28) is close to 3-year high of $4.570, and the VSR P/S ratio (0.4) is close to 3-year high of 0.4. GuruFocus also cites a positive indicator: Versar, Inc. has enough cash to cover all of its debt.

To see the company’s annual growth since 2004:

• Warning! GuruFocus has detected 7 Warning Signs with VSR. Click here to check it out.
• VSR 30-Year Financial Data
• The intrinsic value of VSR
• Peter Lynch Chart of VSR

VSR data byGuruFocus.com

In Ariel Investment Trust’s Quarterly Report of December 31, 2012, John Rogers cited the market’s return to normal: “We are excited about the prospects for the stock market as well as our portfolios as we embark on a new year. In our view, despite the gains that have already occurred, we are still in the early innings of a recovery. Our optimism is actually tied to three possibilities. First, we expect unemployment to continue to drift lower and ultimately return to more normal levels (6% or so) in the coming years. And more and more Americans eventually returning to work should help spur anemic economic growth rates. In some ways, we consider these factors an inevitable return to normal. Second, as The New York Times recently surmised, “The current rally may still have legs precisely because many investors have so far failed to participate in it.” Third, poor bond returns should eventually lead money back to the stock market. Our friend, Ed Mathias of the Carlyle Group, has dubbed this a “melt up.” That is, as money melts down out of bonds, it pours into stocks, which will ultimately drive up share prices. In our view, one of these scenarios playing out suggests a positive outcome for the stock market—all of them would be a boon.”

Rogers’s most recent top buys, top sales, and top holdings are summarized:





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