The small-cap world is a good place to be right now. The market for smaller companies reached record highs recently, surpassing previous peaks in July 2007 and April 2011. Small-cap investor Chuck Royce of Royce & Associates is enjoying the upswing, writing this week, “Guarded optimism may be as close to bliss as we can usually get, but we have seldom felt more confident about our investment approach than we do right now, looking out on the months and years to come.”
With that backdrop, the investor purchased 90 new stocks, resulting in 6% quarter-over-quarter turnover in his $32.6 billion portfolio. It contains 1,366 small-cap names in total.
His largest new buys were Alamos Gold Inc. (AGI, Financial), Artisan Partners Asset Management Inc. (APAM, Financial), Era Group Inc. (ERA, Financial) and PTC Inc. (PMTC, Financial).
Alamos Gold Inc. (AGI)
Royce purchased 4,144,100 shares of Alamos Gold at $15 on average, representing 17% of his portfolio. Down 9% since then, it trades at $13.53 Tuesday.
With a $1.79 billion market cap, Alamos Gold is a development company that turned into a gold producer company with a major acquisition in 2003. It owns mines in Mexico and Turkey.
In its second quarter, reported July 25, the company had quarterly record production of 53,000 ounces of gold and revenues, a 10% increase from the previous year. Revenues were $78.3 million, down from $80.89 million the previous year. Quarterly earnings were $8.8 million, a drop from $24.68 million the previous year.
Alamos ended the quarter with $466.4 billion in cash, increased from $306.06 million the previous year, and $78.09 million in total liabilities.
The company also has a P/E ratio of 17.10 and P/S ratio of 4.90. The dividend yield of Alamos Gold Inc. stocks is 0.70%. Alamos Gold Inc. had an annual average earnings growth of 26.1% over the past five years.
Alamos’ 10-year revenue and earnings history:
The Peter Lynch chart indicates it is overvalued:
Artisan Partners Asset Management Inc. (APAM)
Royce purchased 719,636 shares of Artisan Partners Asset Management for $38 on average, a 0.087% portfolio weighting. Up 38% since then, it trades at $52 per share on Tuesday.
With a $3.64 billion market cap, Artisan Partners is a global investment management firm founded in 1994 with assets of $85.8 billion.
The company held its IPO March 6, pricing shares at $30 each. Since then, shares gained 34%.
For the second quarter ended June 30, 2013, Artisan Partners reported client inflows of $1.4 billion, contributing to a revenue increase to $162 million, up from $120.8 million the previous year, and net income of $5.7 million, up from $30.8 million the previous year.
The company has $280 million in cash and $32.7 million in long-term liabilities, with no debt.
Artisan Partners’ revenue and earnings history:
The Peter Lynch chart indicates overvaluation:
Era Group Inc. (ERA)
Royce purchased 1,270,980 shares of Era Group Inc. for $21 on average, a 0.082% portfolio weighting. Shares gained 21% since and trade at $24.88 Tuesday.
Era Group is a helicopter operator and the longest-serving helicopter transport operator in the U.S., primarily transporting people to and from offshore drilling operations. It also serves Brazil, Canada, India, Indonesia, Mexico, Norway, Spain, Sweden, the UK and Uruguay.
Era Group was formerly a subsidiary of SEACOR Holdings Inc., until shares were distributed to SEACOR shareholders on Jan. 31, 2013, and it became a public company. For the quarter ended March 31, 2013, Era’s operating revenues rose to $67.7 million from $61.1 million the previous year. Net income also increased to $6.7 million from $4.6 million the previous year, due largely to asset dispositions and increased revenues, offset by an impairment charge due to a Brazilian joint venture.
The balance sheet for Era reflects cash of approximately $72.21 million with long-term liabilities and debt totaling $488 million.
Era’s revenue and earnings history:
The Peter Lynch chart indicates overvaluation:
PTC Inc. (PMTC)
Royce purchased 640,000 shares of PTC Inc. for $24, representing 0.05% of the portfolio. Up 12.6% since then, shares are at $27.02 Tuesday.
PTC is a technology company that helps businesses design and services products in various industries, and bears a $3.23 billion market cap.
In the quarter ended June 29, 2013, PTC reported a 1% year-over-year increase in non-GAAP revenue of $316 million and a 22% increase in non-GAAP EPS of $0.45, at the high end of its guidance range. The company also reduced its near-tern revenue outlook due primarily to macroeconomic concerns.
The company ended the quarter with $257 million in cash, up from $241 million the previous quarter. Long term liabilities total $309 million, with zero debt.
PTC’s revenue and earnings history:
The Peter Lynch chart suggests it is overvalued:
See the rest of Chuck Royce’s newly updated portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Chuck Royce.
Not a GuruFocus Premium Member? Click here for a 7-Day Free Trial.
With that backdrop, the investor purchased 90 new stocks, resulting in 6% quarter-over-quarter turnover in his $32.6 billion portfolio. It contains 1,366 small-cap names in total.
His largest new buys were Alamos Gold Inc. (AGI, Financial), Artisan Partners Asset Management Inc. (APAM, Financial), Era Group Inc. (ERA, Financial) and PTC Inc. (PMTC, Financial).
Alamos Gold Inc. (AGI)
Royce purchased 4,144,100 shares of Alamos Gold at $15 on average, representing 17% of his portfolio. Down 9% since then, it trades at $13.53 Tuesday.
With a $1.79 billion market cap, Alamos Gold is a development company that turned into a gold producer company with a major acquisition in 2003. It owns mines in Mexico and Turkey.
In its second quarter, reported July 25, the company had quarterly record production of 53,000 ounces of gold and revenues, a 10% increase from the previous year. Revenues were $78.3 million, down from $80.89 million the previous year. Quarterly earnings were $8.8 million, a drop from $24.68 million the previous year.
Alamos ended the quarter with $466.4 billion in cash, increased from $306.06 million the previous year, and $78.09 million in total liabilities.
The company also has a P/E ratio of 17.10 and P/S ratio of 4.90. The dividend yield of Alamos Gold Inc. stocks is 0.70%. Alamos Gold Inc. had an annual average earnings growth of 26.1% over the past five years.
Alamos’ 10-year revenue and earnings history:
The Peter Lynch chart indicates it is overvalued:
Artisan Partners Asset Management Inc. (APAM)
Royce purchased 719,636 shares of Artisan Partners Asset Management for $38 on average, a 0.087% portfolio weighting. Up 38% since then, it trades at $52 per share on Tuesday.
With a $3.64 billion market cap, Artisan Partners is a global investment management firm founded in 1994 with assets of $85.8 billion.
The company held its IPO March 6, pricing shares at $30 each. Since then, shares gained 34%.
For the second quarter ended June 30, 2013, Artisan Partners reported client inflows of $1.4 billion, contributing to a revenue increase to $162 million, up from $120.8 million the previous year, and net income of $5.7 million, up from $30.8 million the previous year.
The company has $280 million in cash and $32.7 million in long-term liabilities, with no debt.
Artisan Partners’ revenue and earnings history:
The Peter Lynch chart indicates overvaluation:
Era Group Inc. (ERA)
Royce purchased 1,270,980 shares of Era Group Inc. for $21 on average, a 0.082% portfolio weighting. Shares gained 21% since and trade at $24.88 Tuesday.
Era Group is a helicopter operator and the longest-serving helicopter transport operator in the U.S., primarily transporting people to and from offshore drilling operations. It also serves Brazil, Canada, India, Indonesia, Mexico, Norway, Spain, Sweden, the UK and Uruguay.
Era Group was formerly a subsidiary of SEACOR Holdings Inc., until shares were distributed to SEACOR shareholders on Jan. 31, 2013, and it became a public company. For the quarter ended March 31, 2013, Era’s operating revenues rose to $67.7 million from $61.1 million the previous year. Net income also increased to $6.7 million from $4.6 million the previous year, due largely to asset dispositions and increased revenues, offset by an impairment charge due to a Brazilian joint venture.
The balance sheet for Era reflects cash of approximately $72.21 million with long-term liabilities and debt totaling $488 million.
Era’s revenue and earnings history:
The Peter Lynch chart indicates overvaluation:
PTC Inc. (PMTC)
Royce purchased 640,000 shares of PTC Inc. for $24, representing 0.05% of the portfolio. Up 12.6% since then, shares are at $27.02 Tuesday.
PTC is a technology company that helps businesses design and services products in various industries, and bears a $3.23 billion market cap.
In the quarter ended June 29, 2013, PTC reported a 1% year-over-year increase in non-GAAP revenue of $316 million and a 22% increase in non-GAAP EPS of $0.45, at the high end of its guidance range. The company also reduced its near-tern revenue outlook due primarily to macroeconomic concerns.
The company ended the quarter with $257 million in cash, up from $241 million the previous quarter. Long term liabilities total $309 million, with zero debt.
PTC’s revenue and earnings history:
The Peter Lynch chart suggests it is overvalued:
See the rest of Chuck Royce’s newly updated portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Chuck Royce.
Not a GuruFocus Premium Member? Click here for a 7-Day Free Trial.
