specializes in financially distressed companies. Ross' company,
WL Ross & Co LLC invests in remaking his targeted companies
into world-class enterprises and has approximately $9 billion of
assets under management.
In the third quarter, Ross bought one new stock for his equity
portfolio, E2open Inc. (
) and added to one more, Zynga Inc. (
Ross bought 1,323,700 shares of
, after it held its IPO July 26, offering 4,687,500 shares priced
at $15 per share.
E2open Inc. provides cloud-based solutions for global trading
networks. On Oct. 8 it announced its financial results for its
second quarter of fiscal 2013 ended Aug. 31, 2012. Its revenue
was $22.9 million, a record, increased from revenue of $16.6
billion a year previously. Net income increased to $4.57 billion,
an increase from $2.16 billion a year previously.
The company has cash of $43.8 million on its balance sheet,
including proceeds from its IPO, an increase from $10.2 million
at year-end 2012.
"E2open continued to execute at a high level during our second
fiscal quarter, leading to financial results that were better
than our expectations," said Mark Woodward, E2open's President
and CEO. "Enterprises are increasingly demanding cloud-based
supply chain solutions to improve collaboration, visibility and
efficiency of their global trading networks. E2open is benefiting
from this demand as a result of our market leadership position
and track record of providing the solutions that support some of
the largest supply chains in the world."
Ross also added 190,320 shares to his stake in
Zynga Inc. (
for $4 each on average, which brought his total shares owned to
1,034,646. The price at which he initiated the stake in the
second quarter was $8 per share on average - the stock has
tumbled 77% year to date.
Zynga on Oct. 24 reported revenue increase of 3% year over year
to $317 million. It also suffered a net loss of $52.7 million,
compared to net income of $12.5 million a year previously. The
net loss included an impairment charge of $95.5 million from
intangible assets when it purchased OMGPOP and stock-based
At quarter-end, Zynga had $1.6 billion in cash on its balance
sheet, compared to $926.3 million a year previously.
Zynga is embarking on a cost-reduction program that will include
reducing 150 employees or 5% of its workforce, "rationalize its
product pipeline, reduce marketing and technology expenditures
and consolidate certain facilities."
"While the last several months have been challenging for us,
Zynga remains well positioned to capitalize on the growth of
social gaming. We're implementing a number of steps to drive
long-term growth and profitability. The successful launches of
FarmVille 2 and ChefVille in the third quarter demonstrate that
when we develop great games, our large player audience engages.
It's more clear than ever that along with search, shop, and
share, play is a fundamental pillar of the Internet, and Zynga
continues to be the leader," said Mark Pincus, CEO and Founder,
Zynga has a P/E of 106.3, P/B of 0.9 and P/S of 1.5.
On other portfolio moves, Ross sold out of his positions in
MaxLinear Inc. (
), Ubiquiti Networks Inc. (
) and Tangoe Inc. (
). See the rest of his updated
third-quarter portfolio here
. Also check out the
top growth companies
and high yield stocks of Wilbur Ross.About GuruFocus:
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