By his own admission, Dan Miller looks like he's about 12
years old. Nevertheless, he presides over an investment firm of
35 analysts, called
Miller talked about his mutual fund at the Value Investing
Congress today. The fund invests in between 25 and 35 companies,
with 50% of the capital in five positions. Gabelli only invests
in companies with an identifiable catalyst in the next three to
18 months. "Investing with conviction," Miller calls it.
Miller presented three investment ideas about which he has
Real D (
- $330 million company
- Manufactures device that converts 2-D images to 3-D, sells
it to movie theaters. Studios pay roughly $5 million for this
- The stock trades at just under $7, only 5.5 times
- The company is in the process of cutting operating costs
after a rough summer for box-office sales.
- The company is likely to authorize a share buyback in the
- Miller thinks the stock is worth $13, close to double its
- $340 million market cap
- A provider of cloud computing and other IT services
- Focused on online advertising, media and healthcare
- Trading at 10 times earnings - a significant premium for
the technology space
Guidance Software (
- $224 million market cap
- Software company that specializes in digital forensics,
security analytics, incident response and e-discovery. The CIA
and Department of Defense are among its clients.
- Company was affected by sequestration, driving down
earnings last quarter.
- Announcing a new cybersecurity product in the next
- Stock is worth $16, nearly double its current share