Richard Snow Increases Stakes in Seven Positions

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Apr 24, 2015
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Richard Snow (Trades, Portfolio) of Snow Capital Management LP recently increased his stakes in seven positions in his portfolio, which contains 140 stocks with a total value of $3.36 billion, and a 16% quarter over quarter turnover.

According to the Snow Capital Management website, the firm will only allow stocks that have the highest potential returns into the portfolio.

Abercrombie & Fitch Co (ANF, Financial)

Snow increased his stakes in ANF by adding 3,032,794 shares to his portfolio, which were purchased at an average price of $30.69 a share. Snow now owns 3,103,399 shares.

Abercrombie & FItch is a specialty retailer that was incorporated in 1996. The store sells products such as jeans, casual sportswear, graphic t-shirts, fleece, jeans, woven pants, shorts, sweaters, outerwear and personal care products.

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The Peter Lynch earnings line is currently at $13.30, which indicates the stock is overvalued, as it is currently trading at $22.15 a share.

Earnings per share for the trailing twelve months as of January 2015 was $0.73 and the P/E ratio was 30.18.

Carbo Ceramics Inc (CRR, Financial)

Snow purchased 934,725 shares of CRR at an average price of $46.66 a share. He now owns 958,810 shares of this position.

Carbo supplies ceramic proppant and also provides fracture simulation software, fracture design, engineering and consulting services, along with a wide range of technologies for spill prevention, containment and countermeasures.

CRR is currently trading at $33.68 a share. According to the DCF calculator, the stock's intrinsic value is $32.39 with a -4% margin of safety.

The operating margin is currently 7.35%. Investors should be cautious of the company's operating margin because it has been declining for the past 5 years at an average rate of -9.7% a year.

BIg Lots Inc (BIG, Financial)

In January, Snow increased his stakes in BIG by adding 332,780 shares that were purchased at an average price of $44.45 a share, bringing the number of shares owned to 2,775,200. He then reduced his stakes the following month by 10.8%, which left him with 2,476,092 shares in his portfolio today.

Big Lots has two segments: the United States and Canada. The US evaluates and reports overall sales and merchandise performances in Food, Consumables, Soft Home, Hard Home, Furniture & Home Decor, Seasonal and Electronics & Accessories.

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The Peter Lynch earnings line is at $48.10 and BIG is currently trading at $47.86, which indicates the stock may be slightly overvalued.

Revenue per share for the trailing twelve months as of January 2015 was $93.67 and its growth rate was 5.70%. Big Lots has shown predictable revenue earnings growth, which is a good sign for investors.

Atlas Air Worldwide Holdings Inc (AAWW, Financial)

1,190 shares of AAWW were purchased during the fourth quarter of 2014 at an average price of $40.69 a share. Snow now owns 1,630,235 shares.

Atlas Air provides outsourced aircraft and aviation operating services around the world. It was incorporated in 2000.

According to the DCF calculator, Atlas Air's intrinsic value is $47.25 with a 9% margin of safety. The position is currently trading at $42.91, which indicates it may be undervalued.

Earnings per share for the trailing twelve months as of December 2014 was $4.26 and its growth rate for the past year was 15.80%.

Atlas Air’s current ratio is at a comfortable 1.25, which indicates good short-term financial strength.

Titan International Inc (TWI, Financial)

Snow increased his stakes in TWI by purchasing 179,180 shares at an average price of $10.29 a share. He now owns 3,601,534 shares.

Titan International manufactures wheels and tires, as well as undercarriages that are used in the agricultural, earthmoving, construction and consumer markets. TWI is currently trading at $9.47 a share.

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Revenue per share for the trailing twelve months as of September 2014 was $36.48.

A warning sign investors should pay attention to is revenue growth has slowed down over the past year. Looking at revenue growth over the past three years, the growth rate was at 8.20% a year, over a five-year span it was 11.80% a year and over ten years it was at 5.60% a year. Over the past 12 months, however, its growth rate was 0.10%.

Tidewater Inc (TDW, Financial)

Snow purchased 778,194 shares of TDW at an average price of $35.11 a share and now has 3,453,354 shares in this position.

Tidewater is a provider of offshore vessel services for offshore exploration, field development and production, which includes towing and anchor handling of mobile drilling units. The company was incorporated in 1956.

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The Peter Lynch earnings line is currently at $23.50, which indicates the stock is almost right on target, as it is currently trading at $23.43 a share.

Tidewater’s current ratio is at a comfortable 1.96, which indicates good short-term financial strength.

PBF Energy Inc (PBF, Financial)

In January, Snow purchased 364,152 shares of PBF, bringing his number of shares of this position to 4,493,964. In March, he reduced his stakes by 16%. He currently owns 3,775,387 shares.

PBF Energy is a petroleum refiner and supplier of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in North America. PBF is currently trading at $29.27 a share.

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Revenue per share for the trailing twelve months as of December 2014 was $267.74. Investors should pay attention to the fact that revenue has been declining over the past twelve months. Its growth rate for the past year was -42%.

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