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Sally Jones
Sally Jones
Articles (580) 

Super Mario Gabelli—Does Wheelies for SUP

March 27, 2013 | About:

On March 22, 2013 GAMCO Investors’ Chairman and Chief Executive Officer Mario Gabelli added to his position with Superior Industries International (NYSE:SUP) by 7.03%, bringing his total shares of one of the world’s largest suppliers of cast aluminum wheels to 1,765,598. When Gabelli first bought into the company in the fourth quarter of 2008, the stock sold at an average price of $12.26. In 2012 Guru Gabelli made adds in every quarter, and now has current 6.48% of shares outstanding, second only to Guru Third Management Avenue with 7.72%. The current SUP share price is $18.81, down 10% year to date.

Headquartered in Van Nuys, Calif., Superior Industries International (NYSE:SUP) designs and manufactures cast and forged aluminum road wheels for original equipment manufacturers of automobiles and trucks. With operations across the U.S. and Mexico, the company's OEM wheels are sold mainly for factory installation on vehicle models manufactured by the “Big Three,” Ford Motor Company (F), General Motors (GM) and Chrysler, accounting for 76% of the company’s total sales in the first three quarters of 2012. Superior Industries also makes aluminum wheels for BMW, Nissan (NSANY), Toyota, Subaru, Mitsubishi (MSBHY) and Volkswagen. The company’s operations in Mexico accounted for $520 million and 63% of sales in 2012. Superior Industries International has a market cap of $507.4 million, and a P/E of 16.3. The P/S is 0.6185.

Gabelli’s SUP holding history:

GuruFocus performed a checkup on the company’s financials and performance data and found that the company has no debt. One warning sign is that Superior Industries International revenue growth has slowed down over the past 12 months. Superior Industries International is a cyclical company that must manage the risk from changes in aluminum pricing as well as auto sales from the Big Three. The company has a track record of riding those waves and combatting recession with cost-cutting moves such as closing plants as was needed in the year following 2008.

See the detailed analysis of SUP.

Gabelli’s company, GAMCO Investors lists 792 stocks in a portfolio valued at $13.6 billion, with a quarter over quarter turnover at 6 percent. At the end of fourth quarter 2012, GAMCO Investors, Inc. (GAMCO) (NYSE: GBL) announced fourth quarter earnings of $17.6 million, and assets under management at $36.4 billion, a record at year-end. For revenue, GAMCO Investors ranks higher than 92% of the 13 companies in the industry. For earnings yield, GAMCO Investors ranks higher than 54% of the 13 companies in the industry.

Here’s a look at Mario Gabelli’s other top buys, sells, and holdings:

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.3/5 (10 votes)


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