John Keely, President and Chief Investment Officer at Keeley Asset Management Corp, (KAMCO) recently added new positions, as well as increased positions, to his portfolio of 371 stocks, valued at $4.98 billion with a quarter-over-quarter turnover rate of 8%.
KAMCO believes in delivering above-average, long-term results by using a fundamental, "bottom-up" value approach when it comes to the firm's investment strategy.
"The key to our investment philosophy is to give clients access to the small cap asset class with less inherent volatility typically associated with small cap stock investing. In challenging investment environments, we believe the quality of our dividend-focused portfolio coupled with our attention to valuation will provide strong downside market protection and preserve capital during volatile periods."
Here's a look at Keeley's top buys:
Bloomin Brands Inc (BLMN, Financial)
Keeley purchased 1,966,040 shares of BLMN at an average price of $21.02/share.
Bloomin, which was previously known as Kangaroo Holdings, Inc., was incorporated in Delaware as a casual dining restaurant company that owns and operates 1,248 restaurants and has 195 restaurants operating under a franchise or joint venture arrangement.
The company's current P/E ratio is 24.42, which is close to its one-year high of 26.20 and above the Restaurant Industry median of 19.5, as shown in the chart below.
The stock is currently trading at $24.45, although the intrinsic value calculator values the stock at $14.75, with a margin of safety at -66%, which means the stock may be overvalued.
Other gurus that are currently holding BLMN in their portolios include: Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Caxton Associates (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio).
Keeley increased stakes in XLS by 18857.1% by purchasing 2,389,190 shares at an average price of $17.21/share, having a 0.84% impact on his overall portfolio.
Exelis was incorporated in Indiana as a diversified aerospace, defense, information and services company.
The company is currently trading at $24.16/share, although the intrinsic value calculator values the stock at $18.73, with a margin of safety at -29%, which means the stock could be overvalued.
The current P/S ratio is 1.05, which is alarmingly close to its five-year high of 1.10. Exelis Inc's current revenue is ~$4.47 billion. Over the past 12 months, the Revenue per Share Growth Rate was -11.20% and over the past five years, the Growth Rate was -7.80%. As indicated in the chart below, the company's revenue has been steadily declining over the past five years.
The company's current dividend yield is 1.70% and the current payout ratio is 0.33, which indicates the dividend may be sustainable, as shown in the chart below.
Earnings per share is currently $1.27 and the P/E ratio is 19.11.
Keeley increased stakes in TIME by 879.36%. He purchased 1,874,784 shares at an average price of $22.73/share.
Time Inc is a publishing company that is based in New York, publishing brands including: People, Sports Illustrated, Southern Living, Real Simple, Entertainment Weekly and Fortune, to name a few.
We rated the company a 5 out of 10 on Financial Strengh, due to its Cash to Debt ratio of 0.15 and the Equity to Asset ratio of 0.48.
The stock is currently trading at $24.84/share and the intrinsic value calculator values the stock at $11.80, with a margin of safety at -111%, indicating the stock may be overvalued.
Other gurus holding TIME in their portfolios include: Steven Cohen (Trades, Portfolio), David Einhorn (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Mario Cibelli (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Jean-Marie Eveillard (Trades, Portfolio), NWQ Managers (Trades, Portfolio) and Dodge & Cox.
Commercial Metals Co (CMC, Financial)
Keeley increased his position in CMC by 142.93% by purchasing 1,367,020 during the fourth quarter of 2014 at an average price of $17.14/share. He now owns 2,323,440 shares.
Commercial Metals was incorporated in 1946 in Delaware. The company recycles, manufactures and markets steel and metal products.
The stock is currently trading at $15.40 and the intrinsic value calculator gives the stock a fair value of $13.42, with a margin of safety at -15%, which means the stock may be overvalued.
Shareholders received a cash dividend payout of $0.12 per share earlier this month. Shareholders received a total payout of $0.48 per share for the year, ending in Novemeber 2014.
The current payout ratio is 0.53, which means the dividend may be sustainable, as shown in the chart above. The current dividend yield is 3.20% and the P/E ratio is 17.42.
Other gurus currently holding this stock include: Chuck Royce (Trades, Portfolio), Jim Simons (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio).
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