GuruFocus Value Screener for Sector Picks
helps unearth possible small cap gems from a mountain of trading
obscurity. Today's find is FARO Technologies Inc. (
), which just announced the release of a new breakthrough piece of
equipment called the FARO Edge ScanArm ES. The new arm-like tool is
a performance booster used in various stages of product
development, inspection, and quality control. It offers
capabilities such as point cloud comparison with CAD, rapid
prototyping, reverse engineering and 3D modeling.
While the high-tech world of laser scanning is typically best
understood by engineers who design and build industrial equipment
and parts, or other professionals who need hair-splitting precision
measurements, seven billionaire gurus hold FARO Technologies, a
globally-reaching small cap company that continues to revolutionize
the manufacturing world with speed, precision, and portable
Here's a look at the company's current financials and the
billionaires holding FARO.
FARO Technologies Inc. (
Down 2% over 12 months, Faro Technologies Inc. has a market cap of
$684.4 million; its shares were traded at around $40.14 with a P/E
ratio of 34.70.
Founded in 1982, Faro Technologies Inc. is a global company that
designs, manufactures and markets portable, software driven, 3-D
measurement and imaging systems used in a range of applications for
metrology, including manufacturing, industrial, building
construction and forensics.
At the end of July FARO Technologies Inc. reported financial
results for the second quarter ended June 29, 2013 with sales for
the quarter increased to $68.3 million, from $66.8 million in the
second quarter of 2012. The company reported net income of $3.6
million, or $0.21 per share, in the second quarter of 2013,
compared to $4.7 million, or $0.28 per share, in the second quarter
of 2012. FARO also saw new order bookings for the second quarter of
2013 of $66.7 million, a decrease of 6.1% from $71.0 million in the
second quarter of 2012.
In a company press release, Jay Freeland, FARO's president and CEO,
commented: "Our results in the second quarter were impacted by
ongoing economic softness in Europe and Asia. While interest in
FARO products remains strong, many customers have deferred purchase
decisions in light of economic uncertainty. The Americas region
continues to show signs of strength, generating double-digit sales
growth in the quarter and our product development pipeline remains
robust. To capitalize on anticipated improvement in our markets, we
added staff to our sales and research and development
organizations, which adversely impacted our second quarter results
but positions the Company well looking forward. We expect the
second half of 2013 should provide an opportunity for improvement
driven by the global increase in new sales account managers.
However, if the overall macroeconomic environment remains stagnant
for the rest of 2013, our markets may remain under some pressure."
Seven gurus hold FARO as of June 30, 2013 and
there is insider activity.
As of June 30, 2013,
is the largest Guru stakeholder with 7.06% of shares outstanding,
or 1,208,083 shares. PRIMECAP increased its position by 45.1% in
that quarter, buying 375,500 shares at an average price of $36.47
per share, for a gain of 9.3%
Over a five-year history, PRIMECAP has averaged a gain of 17% on
1,069,483 shares bought at an average price of $34.10, as of June
30, 2013. On shares sold, the firm has averaged a loss of 24% on
11,400 shares sold at an average price of $52.48.
As of July 31, 2013,
reduced his position by 20.04%. He now holds 3.66% of shares
outstanding or 626,963 shares. His previous trade, as of June 30,
2013, unloaded 587,550 shares at an average price of $36.47 for a
gain of 9.3%.
Over a five-year history, Royce has averaged a gain of 27% on
2,161,687 shares bought at an average price of $31.28, as of June
30, 2013. On shares sold, he has averaged a gain of 11% on
2,040,094 shares sold at an average price of $35.81.
Read more about Chuck Royce's recent small cap
Tracking changes in share pricing, revenue and net income:
Use the GuruFocus Value Screen to find 52-Week Lows and discover
potentially deep value stocks held by billionaire investors.
GuruFocus Real Time Picks reports the stock purchases and sales
that Gurus have made within the prior 2 weeks. The report time lag
can be as short as 2 days after the date of the transaction. This
feature is for Premium Members only.
If you are not a Premium Member, we invite you for
7-day Free Trial
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