As usual, Mario Gabelli has been very active this week. His fund, GAMCO Investors, has reported two new positions and has increased its investment in three other companies. Gabelli managed to beat the S&P500 by 2% on average since 1986 and currently oversees more than $45 billion in assets under management. Preliminary 2013 results show a return of 36.2% compared to S&P500’s 32.4% and the 33.6% for the Russell 3000. This week, Gabelli added a new pharmaceutical stock to his fund’s portfolio and increased the holding of another. Let’s take a look at the financials behind these and other stocks recently added.
At the start of the week GAMCO reported an increase in its holding of Griffin Land & Nurseries, Inc. (NASDAQ:GRIF), a provider of real estate and landscaping services. The fund has increased its investment to 1.73 million shares, which account for a third of the company’s common stock. Griffin Land & Nurseries has a market cap of $156 million and pays an annual dividend of $0.20, which represents a yield of 0.7%. The company posted revenues of $8.01 million and earnings of $0.22 per diluted share for the 13 weeks ending November 30, 2013.
Gabelli has also slightly increase his fund’s stake in Bassett Furniture Industries Inc. (NASDAQ:BSET). According to a recent filing with the Securities and Exchange Commission, GAMCO purchased 112,800 shares, amassing 778,545 shares or 7.16% of the total number of shares outstanding. Ken Griffin has, on the other hand, limited his exposure to this stock, with Citadel Investment Group slashing its holding by 42% during the previous quarter. The company engages in the production but also the import of home furnishings. It has a market cap of $170 million and pays an annual dividend of $0.43, offering a yield of 2.7%. The stock is traded at a Price to Earning (P/E) ratio of 33.xx, not far away from the industry average of 39.80. For the 13 weeks ending November 30, 2013, Bassett Furniture Industries reported $83 million in revenues and $0.17 in earnings per share (EPS).
Cadence Pharmaceuticals, Inc. (NASDAQ:CADX) has caught the eye of the billionaire investor, with GAMCO opening a new position following the acquisition of 5.13 million shares, which account for 5.76% of the common stock. Israel Englander is particularly bullish on this stock, with his fund, Millennium Management, increasing its holding by 844% during the last quarter. The company has a market cap of $1.25 billion and does not pay a dividend. So far this year, the stock has advanced 54% to a current price of $13.99. Cadence Pharmaceuticals posted revenues of $35.3 million, surpassing expectations of $32.2 million, and a loss per share of $0.05 for the previous quarter. Analysts expect the company to register revenues of $37 million and a loss of $0.02 per share for the current quarter.
Another pharmaceutical stock among GAMCO’s moves this week is Hi-Tech Pharmacal Co. (NASDAQ:HITK). Gabelli increased his fund’s position by 39%, taking it to 779,949 shares or 5.61% of the company’s shares outstanding. Jim Simons is also betting big on this company, with Renaissance Technologies increasing its stake by 35% during the previous quarter. The company has a market cap of $603 million and does not pay a dividend. The stock is traded at a P/E ratio of 85.23 and has been trending sideways since the start of 2014. For the three months ending January 31, 2014, Hi-Tech Pharmacal posted revenues of $59.9 million and earnings of $0.59 per diluted share. Current quarter is expected to bring revenues of $63.5 million and earnings of $0.64 per share.
Last but not least is the new investment in Gamco Investors Inc. (NYSE:GBL), an investment advisory company founded and run by Gabelli himself. GAMCO, bought a little over 1 million Class A shares, which account for 13.32% of the total number of Class A shares. Ken Griffin’s Citadel Investment Group holds 7,479 shares, up 73% during Q4 of 2013, while Jim Simons and Renaissance Technologies hold 34,400 shares valued at a little under $3 million. The company has a market cap of $2.15 billion and pays an annual dividend of $0.73, which represents a yield of 0.9%. The stock trades at a trailing P/E ratio of 17.xx, close to the industry average of 20.90. Gamco Investors Inc. announced revenues of $122 million and EPS of $1.32 for the fourth quarter of 2013.
Disclosure: none.
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