Now let's take a look at some of the larger positions in the portfolio.
Collector's Universe (CLCT - Get Report) is an authentication service for online auctions (and non-online) of collectibles like coins and autographs. The company has a $129 million market cap, $55 million in net cash, and $8.5 million in cash flows over the past 12 months. This stock, which I have in TheStreet.com Internet Review, is down a bit on last weekend's Barron's article. But it's worth noting that today, Shamrock Activist Fund filed a 13D stating it's been averaging down every bit of the way -- in the $16s, $15s, and yesterday in the $14s.
Blue Coat Systems (BCSI) is a provider of security appliances for networks that carries a $267 million market cap, $70 million in net cash, and EBITDA of $15 million. Also, Blue Coat has had 43% year-over-year revenue growth and a return on equity of 18%.
The security software company McAfee (MFE) has a $3.2 billion market cap, $1.2 billion in cash with no debt, and EBITDA of $287 million, giving it a multiple of enterprise value over cash flows of less than 9.Microsoft (MSFT - Get Report) consistently finds itself in the value bucket these days, with its $275 billion market cap, $34 billion in cash, no debt, and cash flows of $15 billion and growing while still keeping a return on equity at 28%. EMC (EMC - Get Report) offers a $33 billion market cap, $4 billion in net cash and $2.2 billion in cash flows. In general, Berkowitz & Co. seems more than willing to load up on beaten-down stocks that have great balance sheets that might not be best of breed. However... In some cases, the fund seems to take a top-down approach, starting with a stance on the growth prospects of a sector and then trying to find the fastest-growing companies in that sector and placing its bets on several of the stocks. For instance, consider its stakes in the online-homebuying sector. Ziprealty (ZIPR) has an $185 million market cap, $89 million in net cash and $8.7 million in cash flows over the past 12 months. (Note that even in the top-down approach, the firm still picks the stocks that have the bottom-up characteristics described above.) Housevalues.com (SOLD) offers a $343 million market cap, $88 million in net cash and $24 million in cash flows. Homestore.com (HOMS) carries a $923 million market cap, $58 million in net cash and $20 million in cash flows from operations. (This is the smallest of the three positions.) I plan to do more of these types of articles, and please send me an email and tell me your thoughts on this one. P.S. from TheStreet.com Editor-in-Chief, Dave Morrow:
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