As of Nov. 30, New York-based Royce Funds, headed by small-cap
value investor,
Chuck Royce
, has reported six trades, four of them from the technology
sector. The two other non-tech stocks were plastic products
producer Spartech Corp. (
SEH
) and pharmaceutical company Hi-Tech Pharmacal Co. Inc. (
HITK
). Both stocks have gained points for the moment's trading and
are ranked one star in Business Predictability.
Earlier this month, Royce Funds portfolio manager,
Chip Skinner released commentary
about the year-to-date results of Royce Value Plus Fund, whose
largest sector weighting at the end of the third quarter ended up
to be information technology. In the commentary, Skinner revealed
some of his insight about the sector:
"The Fund is overweight in Information Technology. The sector
has so far not made a significant contribution to 2012
performance, mostly due to the portfolio's large exposure to the
inexpensive semiconductor segment and less exposure to more
high-flying enterprise software businesses. I've reduced the
Fund's weighting in semiconductors somewhat, as the global
economy has really weighed on that group's valuation and recovery
prospects, though I suspect that a stronger economy in the back
half of 2013 would be good news for this group. I've also been
adding names in the enterprise software group."
While the Royce Value Plus Fund was drenched in tech stocks in
the third quarter,
Chuck Royce
's overall sector weightings still has Industrials in the lead,
making up the majority of his 1,401 stock portfolio. (
See sector weighting
)
In Royce's most recent trades, the four out of six stocks that
belonged to the tech sector were: Intelliquent (
IQNT
), DTS Inc. (
DTSI
), Rimage Corp. (
RIMG
) and FARO Technologies Inc. (
FARO
). Below are their descriptions.
Intelliquent (
IQNT
)
After reducing his stake in Intelliquent by 59.17 percent,
Royce's position in the company totals 868,210 shares. In the
third quarter, he had more than 2.1 million shares of the
company.
Headquartered in Chicago, Intelliquent is a provider of voice and
data services worldwide. Some of its services include voice, IP
Transit and Ethernet solutions to major carriers, service
providers and content management firms. It is the largest global
Ethernet provider, with 130 Ethernet sites across 80 countries.
Intelliquent stock has been down 2.97 percent for the afternoon's
trading, priced at $2.29 per share. After several months of
trading between the range of $10 to $13, the stock started to
drop in the beginning of August. Year to date, the company has
lost 74 percent of its market value.
IQNT data by GuruFocus.com
View its 10-Year Financials here.
DTS Inc. (
DTSI
)
Royce added to his DTS Inc. stake by 44.85 percent. After the
purchase, Royce ended with 1,706,229 shares. He reported about
1.2 million shares in the third quarter.
With a market cap of $286.2 million, DTS Inc. is a company that
provides audio technology to billions of consumer electronic
products worldwide. Headquartered in California, It currently has
a mandatory audio format in the Blue-ray Disc standard and
enables digital delivery of movies, music, games and other forms
of digital entertainment.
Its stock is currently down almost 3 percent, trading at $15.22
per share, nearing its three-year low. Year to date, its stock
has decreased in price by 43.91 percent. Its highest price this
year was in May around $31.
DTSI data by GuruFocus.com
View its 10-Year Financials here.
Rimage Corp. (
RIMG
)
Royce reduced his position in Rimage Corp. by 78.68 percent,
ending with 232,200 shares, while he had over 1 million shares in
the third quarter.
With a market cap of $68.9 million, Rimage is in the business of
helping companies deliver digital content to their employees,
customers and partners. Under Rimage are several entities such as
Qumu and Signal, as well as branded CD, DVD and Blu-ray Discs,
covering the publishing of content for video communications and
mobile devices. Rimage's clients are found in North America,
Europe and Asia.
Rimage is currently trading at $6.88; its stock up 2 percent for
the moment's trading. The stock is trading near its five-year
low. Year to date, its stock has depreciated 38.5 percent. It has
a dividend yield of 9.9 percent.
RIMG data by GuruFocus.com
View its 10-Year Financials here.
FARO Technologies Inc. (
FARO
)
Royce added to his stake in FARO Technologies by 74.89 percent.
Reporting only 839,231 shares in the third quarter, Royce now has
1,467,731 shares after the purchase.
Described by Royce Fund's Skinner as "a conservatively
capitalized company that makes robotic measurement arms and
scanning equipment," FARO specializes in 3D measurement
technology, developing computer-aided measurement and imaging
devices and software. Its technology permits development of
high-precision components and assemblies, used for many things
such as surveying, construction and investigation as well as
reconstruction of accident sites or crime scenes.
With a market cap of $598.8 million, FARO is trading at $34.98
per share. Its stock is currently up 0.55 percent. It is trading
close to its one year low. It once traded about $58 in February
of this year. Year to date, the stock has lost 23.39 percent of
its value.
FARO data by GuruFocus.com
View its 10-Year Financials here.
To read more about Royce & Associates, view
GuruFocus' Archives
of articles
.
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
Premium Members
.