The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. 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. It was a quiet week in guru trades but we did see a couple of trades coming from Mario Gabelli (Trades, Portfolio) and Leon Cooperman (Trades, Portfolio).
Leon Cooperman (Trades, Portfolio)
Cooperman made the most notable guru transaction this week when he bought in to the teenager-focused clothing line dELiA*s Inc. (DLIA). This guru initiated his position in dELiA*s by purchasing a total of 8,511,905 shares of the company’s stock. The guru bought these share near the average daily price of $0.72 per share. Since his buy the price per share is trading up approximately 18% to $0.85 per share.
This new position for Cooperman makes up for 25.91% of the company’s shares outstanding. The buy also makes him the largest guru shareholder of dELiA*s stock followed by Chase Coleman (Trades, Portfolio) who holds 3.4 million shares and Chuck Royce (Trades, Portfolio) who holds on to over 2.7 million shares.
dELiA*s is a retail company which primarily focuses on and appeals to teenage girls. It generates revenue by selling apparel, accessories, and footwear to consumers through its mall-based retail locations, website, and direct mail catalogs.
dELiA*s’ historical revenue and net income:
The company recently announced that its Chief Financial Officer, David Dick, would be resigning as of August 1, 2014. dELiA*s has yet to announce his replacement.
The company also recently announced that it had received stockholder approval to use proceeds of $24.1 million from the sale of secured convertible notes. The company intends to use the proceeds for working capital and general corporate purposes.
The analysis on dELiA*s reports that the company’s revenue per share has been in decline over the past five years, its Piotroski F-Score is low and the company’s short interest is high – 31.76% of the float is shorted. On the other hand the analysis also reports that the company’s operating margin is expanding.
dELiA*s has a market cap of $58.5 million. Its shares are currently trading at around $0.83 with a P/S ratio of 0.30 and a P/B ratio of 2.30. The company had an annual average earnings growth of 34.20% over the past five years.
Mario Gabelli (Trades, Portfolio)
According to the GuruFocus Real Time Picks Mario Gabelli (Trades, Portfolio) added to two of his holdings over the past week. 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) and Magnetek (MAG).
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:
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 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.
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