, President and Co-CIO of Royce & Associates, currently holds
1,366 stocks valued at nearly $33 billion. In his commentary on
first quarter 2013,
said, "I think the conditions remain favorable for equities... As
we've seen from the banking crisis in Cyprus, there are always
surprises and challenges that none of us can predict. Some of
these unforeseen events will help the market and some will
reverse its progress."
On May 31,
upped his holdings in the companies Key Tronic Corporation (
) and Cirrus Logic (
Cirrus Logic (
Royce made the most significant change in his holdings on Cirrus
Logic by increasing his stake 643.44%. Royce bought 4,625,079
shares at an average price of $18.25 per share. Since his buy the
price per share has increased about 1%. Royce now holds on to
5,343,879 shares of Cirrus Logic, representing a 0.26% impact to
Chuck Royce's holding history of CRUS:
His increase in the company comes as Cirrus Logic's price nears a
52-week low of $17.36 per share.
About Cirrus Logic:
Cirrus Logic develops high-precision, analog and mixed-signal
integrated circuits for a broad range of customers. Building on
its diverse analog and signal-processing patent portfolio, Cirrus
Logic delivers products for a variety of audio and energy-related
Recent Happenings at Cirrus Logic:
In Cirrus Logic's most recent quarterly financial release, fourth
quarter and full-year fiscal 2013, the company reported:
� Revenue was up 87% year-over-year to $207 million in
the fourth quarter.
� Fourth quarter results of GAAP diluted earnings per
share of $0.39 and non-GAAP diluted EPS of $0.59.
� Full year revenue of $810 million
� Gross margin of 48%.
� GAAP diluted EPS of $2.00 and non-GAAP EPS of $3.24
for the full year.
Financials of Cirrus Logic:
The company's gross margin has been in a long-term decline. The
average rate of decline per year is about 2.3%.
The company's P/B ratio and P/S ratio are also close to one-year
lows of 2.12 and 1.38, respectively.
According to the Peter Lynch Valuation Chart, Cirrus Logic
currently appears to be a good buy, as the CRUS price is sitting
beneath the CRUS price at P/E= 15, meaning that the stock appears
Cirrus Logic has a market cap of $1.33 billion; its shares were
traded at around $17.96 with a P/E ratio of 8.90 and a P/S ratio
of 1.50. The company had an annual average earnings growth of
96.9% over the past five years.
To see the other gurus that hold stake in Cirrus Logic, check out
their holding history here.
Key Tronic Corporation (
Chuck Royce made another, smaller increase on May 31. Royce
increased his position in Key Tronic by 56.18%. The guru added an
additional 393,642 shares to his stake at an average price of
$11.36 per share. Since his increase, the price per share of Key
Tronic has decreased approximately 2% from his average purchase
Key Tronic is a relatively new purchase for Royce; he added it to
his portfolio during the most recent quarter. Since that buy, he
has seen a 4% increase on the price of the stock.
Chuck Royce now holds 1,094,291 shares of Key Tronic,
representing 10.43% of the company's shares outstanding.
About Key Tronic:
Key Tronic has a history of 40 years as an original equipment
manufacturer (OEM) and has transitioned into one of the most
successful Electronic Manufacturing Service (EMS) providers in
the industry today. Key Tronic specializes in PCB assembly,
plastic molding and full product assembly, with products ranging
from simple consumer devices to complex, high-end commercial and
industrial electromechanical products.
Recent Happenings at Key Tronic:
On May 28, Key Tronic announced that it intends to acquire Sabre
Manufacturing for approximately $5.1 million in cash. Sabre
maintains an annual revenue of over $7.0 million and
approximately 90 employees, Sabre is a sheet metal fabrication
company out of a facility near the Key Tronic campus in Juarez,
Mexico. Key Tronic reports that the purchase will be funded by
Key Tronic's available cash and bank credit line. The transaction
is anticipated to close in July and to be immediately accretive
Financials of Key Tronic:
The company's most recent quarterly results, third quarter fiscal
� A revenue of $84.3 million, compared to $95.5
million from third quarter 2012.
� Net income of $2.9 million, compared to $3.4 million
� The gross margin was at 9% and operating margin was
4%, compared to 9% and 5%, respectively, in the same period of
fiscal year 2012.
The analysis on Key Tronic reports:
� Predictable revenue and earnings growth.
� Operating margin expansion.
� The price is close to a 10-year high of $12.22.
� The P/S ratio is close to a one-year high of 0.34.
The Peter Lynch Valuation of Key Tronic shows that the company
appears to be undervalued:
Key Tronic has a market cap of $120.9 million; its shares were
traded at around $11.03 with a P/E ratio of 8.50 and P/S ratio of
0.30. The company had an annual average earnings growth of 7.3%
over the past 10 years. GuruFocus rated Key Tronic the business
predictability rank of 2.5-star.
Chuck Royce is currently the only guru that holds any shares of
You can view Chuck Royce's current portfolio here. Also
check out his Undervalued Stocks, High Yield Stocks and Top
About GuruFocus: GuruFocus.com tracks the stocks picks and
portfolio holdings of the world's best investors. This value
investing site offers stock screeners and valuation tools. And
publishes daily articles tracking the latest moves of the world's
best investors. GuruFocus also provides promising stock ideas in
3 monthly newsletters sent to