Now let's take a look at some of the larger positions in the portfolio.
(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
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
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
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.
(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 - 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.
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.)
offers a $343 million market cap, $88 million in net cash and $24 million in cash flows.
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.
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