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Sally Jones
Sally Jones
Articles (580) 

Gurus Hold Lows - Manufacturing Suffers Shutdown Backlash

October 25, 2013 | About:

Although it’s still difficult to gauge the aftershock, American factories are already feeling the backlash of the U.S. government shutdown, and the country’s manufacturing output has dropped for the first time in four years, according to Reuters. GuruFocus research shows that billionaires are avoiding most of the current lows of the manufacturing world. But here’s a look at three companies in the U.S. manufacturing sector, as revealed by the GuruFocus 52-week low screener, showing companies hitting new lows and are still held or recently sold by top investors and insiders.

Industry Sector: Manufacturing – Furniture and Apparel

This week the furniture and apparel manufacturing sector lists 10 stocks out of 85 that are on a 52-week low. The low ratio is 0.12, the same as it was in July.

Highlight: National Presto Industries (NYSE:NPK)

Yield: 1.40%

The current NPK share price is $71.62 or 11.4% off the 52-week high of $80.83.

Down 4% over 12 months, NPK has a market cap of $494.1 million, and trades at a P/E of 13.80 and a P/B of 1.60.

National Presto Industries manufactures small household appliances and other products. The company operates in three business segments: Housewares/Small Appliances, Defense Products and Absorbent Products. The company is well-known for its pressure cookers and canners, as well as the Presto thermostatic control line of skillets, griddles, woks, multi-purpose cookers; deep fryers, waffle makers, pizza ovens and more. National Presto Industries sells products directly to retailers, primarily in the U.S. and Canada and through independent distributors.

Guru Action: As of June 30, 2013, four Guru shareholders hold NPK, and there is active insider trading.

The top guru stakeholder is Chuck Royce with 879,126 shares or 12.74%. Royce last increased his position by 2.19% in the second quarter when he bought 18,800 shares at an average price of $76.01 per share, taking a loss of 5.9%.

Over a five-year history Royce has averaged a loss of 16% buying 252,334 shares at an average price of $84.85 per share. Selling, he has averaged a loss of 27% on 194,791 shares sold at an average price of $97.73 per share.

Historical share pricing, revenue and net income:


Highlight: Stanley Furniture Company Inc. (NASDAQ:STLY)

The current STLY share price is $3.94, bouncing out of a 52-week low back in July when the share price was $3.47 or 30.6% off the 52-week high of $5.00. The company does not pay a dividend.

Down 14% over 12 months, STLY has a market cap of $57.2 million, and trades at a P/B of 0.60.

Stanley Furniture Company Inc. (NASDAQ:STLY) designs, makes, imports and sells premium priced-wood furniture. The company is known among retailers as a complete wood furniture resource.

Guru Action: As of June 30, 2013, there are five guru stakeholders and active insider trading.

In the third quarter of 2013, Martin Whitman bought 2,425 shares at an average price of $4.52 per share, losing 12.8%. In two quarters of holding, he has averaged a loss of 11% on 94,758 shares bought an average price of $4.45 per share.

Historical share pricing, revenue and net income:


Highlight: Wacoal Holdings Corporation (WACLY)

Yield: 3.20%

The current WACLY share price is around $51.96 or 8.8% off the 52-week high of $56.97.

Down 8% over 12 months, WACLY has a market cap of $1.44 billion, and trades with an EV-to-EBIT of 34.50.

First incorporated in 1949 in Japan as a joint stock corporation, Wacoal Holdings Corporation is a designer, manufacturer and marketer of women's intimate apparel. The company also makes nightwear, children's underwear, outerwear, sportswear, hosiery and other apparel and textile products. Wacoal Holdings Corporation also has interests in restaurant businesses, cultural projects, and builds interiors for commercial premises, including sales counters for its apparel.

Guru Action: As of June 30, 2013, the remaining guru shareholder Jim Simons sold out after five years of losses. He sold 25,600 shares in the second quarter at an average price of $51.48 per share, making his first gain in five years at 0.3%. Except for that gain, in five years of trading WACLY, Jim Simons had losses in ever quarter at 25.5% or less.

There is no insider trading to report.

Historical share pricing, revenue and net income:


Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

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: 2.8/5 (5 votes)


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GuruFocus has detected 1 Warning Sign with National Presto Industries Inc $NPK.
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