According to the GuruFocus Real Time Picks Mario Gabelli (Trades, Portfolio) added to two of his holdings over the past week. The “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. Gabelli is known for his large portfolio and strong track record of value investing. The stocks Gabelli has been toying with this week are Griffin Land & Nurseries (GRIF, Financial) and Magnetek (MAG, Financial).
On June 23, Gabelli upped his take in Magnetek (MAG) 8.8% by purchasing 12,151 shares of the company’s stock. The guru bought these shares at around the daily average price of $23.02 per share. Since his buy the price per share is trading slightly lower at $22.96 per share.
Mario Gabelli (Trades, Portfolio) now holds on to 150,271 shares of the company’s stock. This position makes up for 4.67% of the company’s shares outstanding a minor 0.01% of Gabelli’s total assets managed.
Gabelli’s holding history of Magnetek as of the close of the first quarter:
Gabelli has held on to Magnetek for several years and over the past year the guru has seen average gains of 64% on shares bought.
Magnetek is a provider of digital power control systems that are used to control motion and power mainly in material handling, elevator, and energy delivery applications. The Company's systems consist mainly of programmable motion control and power conditioning systems.
Magnetek’s historical revenue and net income:
Chuck Royce (Trades, Portfolio) and Jim Simons (Trades, Portfolio) also hold a position in Magnetek. Check out their holdings here.
The analysis on Magnetek reports that the company’s price is near a 5-year high, its revenue per share has been in decline over the past three years and the company’s cash flow shows severe divergence from its reported net income.
The company’s most recently announced financial results report:
- Net sales of $24.1 million, down 4% from the first quarter last year
- First quarter margin improved to 33.8% of sales, up 130 basis points.
- Income from operations increased nearly 80% from last year.
- EPS from operations increased to $0.35 per share.
The Peter Lynch Chart suggests that the company is currently overvalued:
Magnetek has a market cap of $75.8 million. Its shares are currently trading at around $23.22 with a P/E ratio of 20.90, a P/S ratio of 0.80 and a P/B ratio of 6.80.
On June 24 Gabelli made his second increase in the company Griffin Land & Nurseries (GRIF). The guru upped his stake 3.42% by purchasing 37,304 shares of the company’s stock. Gabelli bought these shares near the average daily price of $26.54 per share, and since then the price per share is trading up 1% to about $26.80 per share.
Gabelli now holds on to 1,126,676 shares of Griffin Land & Nurseries. This position makes up for 21.88% of the company’s shares outstanding and about 0.20% of the guru’s total portfolio. This most recent buy of Gabelli’s makes for the fifth increase he’s made in Griffin during the second quarter of 2014.
Gabelli’s holding history as of the close of the first quarter:
Griffin is engaged in two lines of business: the real estate business comprised of the ownership, construction, leasing and management of commercial and industrial properties and the development of residential subdivisions on real estate owned by Griffin and the landscape nursery products business comprised of the growing of containerized landscape nursery products for sale mainly to retail garden center operators, landscape nursery mass merchandisers and wholesale sales and service centers, whose main customers are landscape contractors.
Griffin Land & Nurseries’ historical revenue and net income:
The analysis on Griffin Land & Nurseries reports that the company’s revenue per share has been in decline over the past five years, its dividend yield is near a 2-year high and its Piotroski F-Score is low, which usually implies poor business operation.
The company recently announced the closing on mortgage loan refinancing. On June 9, the company announced that two of its subsidiaries, Griffin Center Development I and Tradeport Development I, of its real estate business, Griffin Land, completed refinancing of nonrecourse mortgages with Farm Bureau Life Insurance Company.
Griffin Land & Nurseries has a market cap of $136.7 million. Its shares are currently trading at around $26.57 with a P/S ratio of 5.40 and a P/B ratio of 1.50. The company had an annual average earnings growth of 71.20% over the past five years.
You can check out more picks by Mario Gabelli (Trades, Portfolio) and other guru-favorites by checking out the GuruFocus Real Time Picks here.
