This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mario Gabelli's Stake In Superior Industries A Positive Sign

Mario Gabelli is the founder and CEO of Gabelli Asset Management Company Investors GAMCO Investors, a $43 billion global investment management firm. Mario Gabelli is a strong adherent to value investing principles and emphasizes fundamental bottom-up research in order to generate superior risk-adjusted returns. His Private Market Value PMV with a Catalyst TM methodology is defined as the price an informed industrial buyer would be likely to pay to acquire the business. He focuses on valuing companies based on its cash flow instead of a standard focus on earnings. Mario Gabelli is also well-known for identifying companies that might be candidates for a buyout, which possess specific characteristics such as a large amount of cash on balance sheet, for example.

GAMCO disclosed in a recent SEC filing that it owns a 13.22% stake in Superior Industries, which it’s owned for some time already. Superior Industries is the largest manufacturer of aluminum wheels for passenger cars and light-duty vehicles in North America. From its five plants in both the U.S. and Mexico, the company supplies aluminum wheels to the original equipment market. Major customers include Ford Motor Company (F - Get Report), General Motors Company (GM - Get Report), Chrysler, Bayerische Motoren Werke AG FRA:BMW, Mitsubishi Corp TYO:8058, Nissan Motor Co., Ltd. OTCMKTS:NSANY, Subaru, Toyota Motor Corporation (TM - Get Report) TYO:7203 and Volkswagen AG OTCMKTS:VLKAY (VOW) FRA:VOW.

The company has a market capitalization of $548 million, cash and equivalents of $186 million, has no debt, and is valued at approximately x5 EV/EBITDA multiple. Part of the cash holding is earmarked for the building of a new manufacturing plant in Mexico, which will increase the manufacturing capacity by about 20%. In March 2013, Superior Industries’ board approved a $30 million stock repurchase program, but as of the latest quarter no buybacks were executed so far.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NSANY $17.80 -0.34%
VLKAY $30.86 -2.71%
F $13.43 -1.40%
GM $31.25 -1.57%
TM $101.45 -1.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs