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Sally Jones
Sally Jones
Articles (580) 

Flying Piglets and Top Stocks from D3 Family of Funds David Nierenberg

July 24, 2013 | About:

Guru David Nierenberg is the founder of the D3 Family of Funds. His portfolio lists six stocks with a total value of $182 million and a quarter-over-quarter turnover of 23%. In a concentrated portfolio such as this, the language learning company, the “new and improved” Rosetta Stone (NYSE:RST), stands out as a D3 pick. At the recent 2013 Value Investing Congress in Las Vegas, Nierenberg suggested that RST could possibly be about to sprout wings. Read the rest of Nierenberg’s Flying Piglets presentation from the Value Investing Congress. [/b]

[b]Tracking AACC

After owning as much as 16.65% of shares outstanding of his former top holding, Nierenberg unloaded his position with Asset Acceptance Capital Corporation (AACC) in May 2013. The debt collection company never showed a gain in his trading history:

Down 72% over 12 months, Asset Acceptance Capital Corporation (AACC) has a market cap of $200.76 million. AACC shares trade at around $1.69 with a P/E of 9.00 and a P/S of 0.24. Here are the warning signs offered by the GuruFocus financial checkup on AACC.

A look at three more of David Nierenberg’s top holdings:

Up 53% over 12 Months

Move Inc. (MOVE)

Weighting: 22.6%

Shares Owned: 3,429,191

Share Price: $13.30

With 8.66% of shares outstanding, David Nierenberg is the top Guru shareholder with 3,429,191 MOVE shares. This five-year trading history is a show of high gains, averaging 21% on shares bought and 80% on shares sold.

Incorporated in 1993, Move Inc. is an online media company with a market cap of $543.8 million; its shares were traded at around $13.30 with a P/E ratio of 110.80 and a P/S ratio of 2.60.

Historical pricing:


Up 12% over 12 Months

Electro Scientific Industries (NASDAQ:ESIO)

Weighting: 19.3%

Shares Owned: 3,173,760

Share Price: $12.10

With 10.76% of shares outstanding, David Nierenberg is also the top Guru shareholder with 3,173, 760 ESIO shares. This five-year trading history shows eight out of ten quarters with a loss. Nierenberg has averaged a loss of 19% on shares bought and a gain of 3% on shares sold.

Electro Scientific Industries (NASDAQ:ESIO) has a market cap of $366.6 million; its shares were traded at around $12.10 with a P/E ratio of 115.20 and a P/S ratio of 1.70. The dividend yield of Electro Scientific Industries stocks is 2.60%.

Historical pricing:


Up 27% over 12 Months

Rosetta Stone Inc. (NYSE:RST)

Weighting: 15.3%

Shares Owned: 1,804,474

Share Price: $16.07

With 8.45% of shares outstanding, David Nierenberg is also the top Guru shareholder with 1,804,474 RST shares. This trading history shows all five quarters with a gain. Nierenberg has averaged a gain of 44% on 1,804,474 shares bought at an average price of $11.08.

Incorporated in 2005, Rosetta Stone Inc. (NYSE:RST) has a market cap of $344.5 million; its shares were traded at around $16.07 with and P/S ratio of 1.30.


Here is the complete portfolio of David Nierenberg.

1. David Nierenberg's Undervalued Stocks

2. David Nierenberg's Top Growth Companies

3. David Nierenberg's High Yield stocks

4. Stocks that David Nierenberg keeps buying

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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 (4 votes)


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