Robert Olstein Exits Pentair, Brady, Trims WestRock

An overview of the guru's most important sales of the 3rd quarter

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Dec 20, 2016
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Robert Olstein (Trades, Portfolio) is the chairman and chief investment officer of the Olstein Financial Alert Fund. During the third quarter the guru sold shares in the following stocks:

His stake in Pentair PLCĂ‚ (PNR) was sold out with an impact of -0.83% on the portfolio.

The company delivers industry products, services and solutions to its customers' diverse needs in water and other fluids, thermal management and equipment protection. Third-quarter sales grew 9% from the same quarter of a year before and earnings per diluted share from continuing operations were 64 cents compared to 52 cents in the third quarter of 2015.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The return on equity (ROE) of -1.47% and return on assets (ROA) of -0.52% are underperforming 97% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 5 out of 10. The cash to debt of 0.04 is below the industry median of 0.86.

The largest shareholder among the gurus is Mairs and Power (Trades, Portfolio) with 1.47% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.28%, PRIMECAP Management (Trades, Portfolio) with 0.96%, Jerome Dodson (Trades, Portfolio) with 0.21% and Joel Greenblatt (Trades, Portfolio) with 0.11%.

The guru exited Brady Corp. Class AĂ‚ (BRC) with an impact of -0.8% on the portfolio.

The company manufactures identification solutions and specialty materials that identify and protect premises, products and people. During the first quarter net earnings grew 20.6% from the same quarter of the prior year while sales declined 1%.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 14.24% and ROA of 8.02% are outperforming 77% of the companies in the Global Security & Protection Services industry. Financial strength has a rating of 7 out of 10. The cash to debt of 0.77 is above the industry median of 0.57.

John Rogers (Trades, Portfolio) is the largest shareholder among the gurus with 7.34% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 2.53%, Paul Tudor Jones (Trades, Portfolio) with 0.06% and Greenblatt with 0.04%.

His stake in WestRock Co. Class AĂ‚ (WRK) was reduced by 36.82% with an impact of -0.63% on the portfolio.

The company provides paper and packaging solutions in consumer and corrugated markets. It offers corrugated container, paperboard, partitions and protective packaging, containerboard and beverage multipacks. During the fourth quarter the company generated net cash from operating activities of $382 million and adjusted free cash flow of $226 million.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. ROE of -3.72% and ROA of -1.62% are underperforming 86% of the companies in the Global Packaging & Containers industry. Financial strength has a rating of 4 out of 10. The cash to debt of 0.06 is below the industry median of 0.27.

The largest shareholder among the gurus is Steven Cohen (Trades, Portfolio) with 0.34% of outstanding shares followed by Greenblatt with 0.25%, T Rowe Price Equity Income Fund with 0.22%, RS Investment Management (Trades, Portfolio) with 0.21%, Ken Heebner (Trades, Portfolio) with 0.15%, Olstein with 0.08% and Keeley Asset Management Corp (Trades, Portfolio) with 0.01%.

The guru reduced his stake in Packaging Corp. of America (PKG) by 61.15% with an impact of -0.57% on the portfolio.

The company is a producer of container board and corrugated products in the U.S. It also produces multicolor boxes and displays as well as meat boxes and wax-coated boxes for the agricultural industry. Third-quarter diluted earnings per share was $1.26 compared to $1.31 in the same quarter of the prior year, and net sales were $1.5 billion.

GuruFocus gives the stock a profitability and growth rating of 9 out of 10. ROE of 26.64% and ROA of 8.22% are outperforming 78% of the companies in the Global Packaging & Containers industry. Financial strength has a rating of 5 out of 10. The cash to debt of 0.11 is below the industry median of 0.27.

First Eagle Investment (Trades, Portfolio) is the largest shareholder among the gurus with 1.53% of outstanding shares followed by HOTCHKIS & WILEY with 0.73%, Greenblatt with 0.36%, Pioneer Investments (Trades, Portfolio) with 0.15% and Jones with 0.01%.

The investor reduced his stake in Oshkosh Corp. (OSK) by 39.03% with an impact of -0.51% on the portfolio.

The company along with its subsidiaries designs, manufactures and markets specialty vehicles and vehicle bodies. During the fourth quarter the company reported net income of $61.5 million, or 82 cents per diluted share, compared to $50.3 million, or 64 cents per diluted share, in the fourth quarter of the prior year and an 11.2% increase for consolidated net sales.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. ROE of 11.37% and ROA of 4.70% are outperforming 70% of the companies in the Global Truck Manufacturing industry. Financial strength has a rating of 6 out of 10. The cash to debt is 0.38.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.78% of outstanding shares followed by Columbia Wanger (Trades, Portfolio) with 1.56%, Simons with 0.42%, First Pacific Advisors (Trades, Portfolio) with 0.42%, Mairs and Power with 0.42%, FPA Capital Fund (Trades, Portfolio) with 0.23% and Olstein with 0.17%.

His stake in Zebra Technologies Corp. (ZBRA) was reduced by 22.66% with an impact of -0.51% on the portfolio.

The company designs, manufactures, sells and supports direct thermal and thermal transfer label printers, radio frequency identification printer/encoders, dye sublimation card printers, real-time locating solutions and support software. Third-quarter net sales decreased 1.3% year over year while gross profit did not change. The company reported 182.5% increase for loss per share.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. ROE of -21.22% and ROA of -3.67% are underperforming 92% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 4 out of 10. The cash to debt of 0.06 is below the industry median of 0.86.

The largest shareholder among the gurus is Rogers with 4.36% of outstanding shares followed by Meridian Funds (Trades, Portfolio) with 1.2%, Richard Snow (Trades, Portfolio) with 1.15%, Chuck Royce (Trades, Portfolio) with 0.65% and Westport Asset Management (Trades, Portfolio) with 0.33%.

The guru exited Kennametal Inc. (KMT) with an impact of -0.46% on the portfolio.

The company is engaged in developing and manufacturing metalworking tools and wear-resistant engineered components and coatings. It supplies its products for the transportation, general engineering, aerospace, defense, energy and earthworks sectors.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. ROE of -22.03% and ROA of -9.76% are underperforming 92% of the companies in the Global Tools & Accessories industry. Financial strength has a rating of 5 out of 10. The cash to debt of 0.17 is below the industry median of 0.86.

The largest shareholder among the gurus is Rogers with 11.69% of outstanding shares followed by Cohen with 1.18%, Simons with 1.14%, Mario Gabelli (Trades, Portfolio) with 0.17%, Snow with 0.36% and Royce with 0.2%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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