Chuck Royce (Trades, Portfolio), Co-Chief Investment Officer and Portfolio Manager at Royce & Associates LLS, manages a portfolio of $28,818 million, composed of 1,310 stocks.
According to GuruFocus Real-Time Picks, during the past month he increased his stakes in Winnebago Industries Inc (WGO) and Identiv Inc (INVE).
He increased his stake of INVE by 27.10%, reaching a total of 1,078,396 shares held at an average price of $11.91/share.
The investor is currently facing a loss of 19%Â even if the stock price during the last 12 months rose by 13%.
The company has dangerous double-figure negative returns (ROE -49.66%, ROA -24.64%, ROC -116.40%) that are ranked lower than 70% of other companies in the Global Computer Systems Industry.
He increased his stake of WGO by 79.39%, reaching a total of 2,361,477 shares held at an average price of $14.85/share.
The Investor is currently facing a gain of 42%Â even if the stock price during the last 12 months dropped by 13%.
The fundamental situation here is extremely positive and such an investment is easily understandable.
The company has strong and positive returns (ROE +22.24%, ROA +12.42%, ROC +39.03%) that are ranked higher than 95% of other companies in the Global Recreational Vehicles industry.
The financial situation is strong as well; it is rated 7/10 and both cash to debt and Interest coverage ratios can be translated as out of debts.
According to the DCF model, the company looks undervalued by 11% at current prices and passive investors can even count on a dividend yield of 1.30%.
During the Q2 2015 results earnings call, the CEO and president of the company said their products were unveiled by last year’s Dealer Days event and were the culmination of Winnebago’s strong team work to achieve a model that would pay tribute to the design of their original motorhomes.
Their retail registrations of motorhomes increased 18% year-over-year and 30% on a rolling 12-month basis In their fiscal ’15 second quarter.
With sales growth of nearly 12% their fiscal ’15 second quarter was also the fifth consecutive quarter of profitability that was generating positive operating income and impressive top line performance .
