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Tiziano Frateschi
Tiziano Frateschi
Articles (1286)  | Author's Website |

Stocks Bill Frels Keeps On Buying

He increased by more than 20% his stakes in Oshkosh, Hub Group and Actuant in the last 2 quarters

November 17, 2015 | About:

Bill Frels (Trades, Portfolio) is the portfolio manager at Mairs & Power, the investment advisory firm where he started in 1992. Mairs & Power Inc. is a small firm whose strength and success has resulted from applying a conservative growth investment approach consistently for more than 70 years.

Frels manages a portfolio of 174 stocks with a total value of $6,398 million, and the following are the stocks he has been buying for at least the last two quarters

Oshkosh Corp. (NYSE:OSK)

During Q2 the investor increased his stake by 25.90% and in Q3 he again bought shares in the company with another increase of 28.45% of his stake. Now he holds 0.2% of outstanding shares of the company, and the stake has a 0.09% weight on his portfolio.

The company along with its subsidiaries designs, manufactures and markets a range of specialty vehicles and vehicle bodies. It currently operates in four business segments: defense, access equipment, fire and emergency and commercial.

The company reported net income of 64 cents per diluted share, compared to 93 cents per diluted share in the third quarter of fiscal 2014, and consolidated net sales in the third quarter decreased 5.4% compared to the prior year third quarter. Oshkosh expects to generate approximately $350 million of free cash flow in fiscal 2016 and to utilize about half of the free cash flow for share repurchases and dividends, including the increase to its quarterly dividend rate.

The company's main shareholder among the gurus is Columbia Wanger (Trades, Portfolio) with a stake of 3.07% of outstanding shares followed by James Barrow (Trades, Portfolio) with 1.87% and First Pacific Advisors with 1.1%.

Hub Group Inc. (HUBG)

During Q2 Frels increased his stake in Hub Group by 29.23% and in Q2 he again bought shares in the company with an increase of 21.86%. Now he holds 0.36% of outstanding shares of the company, and the stake has a 0.07% weight in his portfolio.

The company provides intermodal transportation services utilizing mainly third party arrangements with railroads and drayage companies. The company also arranges for transportation of freight by truck and performs logistics and drayage services.

Hub Group had net income of $19.8 million for the third quarter compared to $4.5 million in the third quarter of 2014, and its diluted earnings per share increased by $0.38 compared to the third quarter of a year before. Due to lower fuel revenue, total revenue decreased by 1%.

Diamond Hill Capital (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 9.61% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 4.3% and Joel Greenblatt (Trades, Portfolio) with 1.4%.

Actuant Corp. (ATU)

During Q2 the investor increased his stake by 21.02% and in Q3 he again bought shares in the company with another increase of 20.64%. Now he holds 0.39% of outstanding shares in the company, and the stake has a 0.07% weight on his portfolio.

The company is a diversified company that designs, manufactures and distributes various industrial products and systems. The company's business segments are Industrial, Energy and Engineered Solutions.

Fourth-quarter sales with a year-over-year decrease of 15% and operating earnings were in line with the company’s expectations. Strong free cash flow in this quarter resulted in full-year free cash flow conversion of more than 100% of net earnings for the 15th consecutive year.

The company's main shareholder among the gurus is Mason Hawkins (Trades, Portfolio) with a stake of 10.4% of outstanding shares followed by Richard Pzena (Trades, Portfolio) with 4.58% and Joel Greenblatt (Trades, Portfolio) with 0.85% of outstanding shares.

Cardiovascular Systems Inc. (CSII)

During Q2 Frels increased his stake in Cardiovascular Systems by 13.31% and in Q2 he again bought shares in the company with another increase of 54.74%. Now he holds 0.65% of outstanding shares, being the company's main shareholder among the gurus, and the stake has a 1.52% weight in his portfolio.

It is a medical technology company. The company is engaged in developing, manufacturing and marketing devices for the treatment of vascular diseases. It treats patients suffering from peripheral and coronary arterial diseases, including those with arterial calcium, the difficult arterial disease to treat.

During the last quarter revenues grew by 52% compared to the fourth quarter of a year before. With 33% growth, the full year 2015 is the second consecutive year of revenue growth in excess of 30%. Cardiovascular Systems' fiscal 2015 fourth-quarter gross profit margin grew by 78% from 77% in the same quarter of 2014 and net loss was 27 cents per common share, compared to a net loss of 31 cents per common share in the fiscal 2014 fourth quarter.

Jim Simons (Trades, Portfolio) has a stake of 0.39% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.13%.

Cabela's Inc. (CAB)

The investor increased his stake in Cabela's by 13.55% in the second quarter and during the third quarter the position was increased again by 44.17%; now the investor holds 0.08% of outstanding shares, 0.04% of its total assets.

It operates as a specialty retailer,and a direct marketer, of hunting, fishing, camping and related outdoor merchandise. The company currently operates 50 retail stores, 46 stores in 26 states and four stores in Canada. It also issues the Cabela's CLUB Visa credit card, which serves as its main customer loyalty rewards program. The company has three reportable segments: Retail, Direct and Financial Services.

For the quarter, total revenue grew by 4.6%, and retail store revenue grew by 6.5%. During this quarter the company took substantial and sustainable actions on its expense base, which will benefit 2016 and beyond.

The company's main shareholder among the gurus is Ruane Cunniff (Trades, Portfolio) with a stake of 4.92% of outstanding shares, then Sarah Ketterer (Trades, Portfolio) with 2.66% and Ken Fisher (Trades, Portfolio) with 1.59% of outstanding shares.

Northern Oil & Gas Inc. (NOG)

During Q2 Frels increased his stake in Northern by 11.58% and in Q2 again he bought shares of Northern with another increase of 29.60%. Now he holds 0.55% of outstanding shares, being the company’s main shareholder among the gurus, and the stake has a 0.02% weight in his portfolio.

The company is engaged in the acquisition, exploration, development and production of crude oil and natural gas properties, primarily in the Bakken and Three Forks formations within the Williston Basin in North Dakota and Montana. It is engaged in crude oil and natural gas exploration and production.

The company is continuing to focus its investments on its highest rate of return opportunities. During the last quarter it reported an increase of 14% for net producing wells.

Jeremy Grantham (Trades, Portfolio) has a stake of 0.08% of outstanding shares. Gurus Joel Greenblatt (Trades, Portfolio) and Mason Hawkins (Trades, Portfolio) sold out their stakes during the third quarter.

About the author:

Tiziano Frateschi
You can read about me on this blog: www.theextraincome.info

It gives suggestions on position trading.

Visit Tiziano Frateschi's Website


Rating: 4.3/5 (4 votes)

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Comments

lorenzo nencioni
Lorenzo nencioni premium member - 2 years ago

good job, Tiziano !

Tiziano Frateschi
Tiziano Frateschi premium member - 2 years ago

Thanks Lorenzo !

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