Mario Gabelli is the founder, chairman, and CEO of Gabelli Asset Management, a $30 billion dollar global investment firm. His 10-year cumulative return as of the end of 2010 was 88% trouncing the S&P 500 return of only 16%, while his 25-year cumulative return 1715% easily outpaces the S&P 500 return of 980%. So following up on my analysis of investment greats such as Mr. Hawkins, Mr. Lampert, and Mr. Pabrai, let's analyze Mr. Gabelli and see if there is value as well.
Goodrich Corporation (GR) supplies aerospace components, systems, and services. This was a new holding for Mr. Gabelli and now own just under 1.06M shares. This company is in the process of being acquired by United Technologies (UTX), which has great value as I describe here, so I believe that I'd rather buy UTX as I don't like to be an arbitrageur in holding GR.
General Mills (GIS) manufactures and markets branded consumer foods worldwide. Gabelli added over 11% to his already sizeable holdings and how has just under 3M shares. This is a fantastic recession proof stock as I've brought up here and still trading at reasonable valuations at a trailing 15x P/E, forward 14x P/E, 1.7x P/S, and consistently growing 3% dividend.
Comcast (CMCSK), together with its subsidiaries, provides entertainment, information, and communications products and services worldwide. Gabelli added almost 40% to his stake and now owns just over 860,000 shares. This is a high quality holding at 16x trailing P/E, 1.2x P/S, fantastic FCF, and consistently growing 1.9% dividend yield.
The Cheesecake Factory (CAKE) operates upscale, casual, and full-service dining restaurants in the United States. Gabelli added over 25% to his stake and now holds 815,000 shares. CAKE is well-run and trades at a reasonable trailing 20x P/E, 15x forward P/E, .9x P/S and EV/S, and 8x EV/EBITDA. This isn't cheap, but since it's such well-run and seems to work well in both a recession and booming economy, this is one of the few restaurants I'd own.
NetLogic Microsystems (NETL), a fabless semiconductor company, together with its subsidiaries, designs, develops, and sells processors and integrated circuits used in mobile wireless infrastructure, data center, enterprise, metro Ethernet, and edge and core infrastructure networks. This was a new holding for Gabelli and bought a big 2.22M shares. However, this like GR, is undergoing a merger, where in this case Broadcom (BRCM) is acquiring NETL, and so I'll refrain from arbitrage and let NETL be acquired.
Northern Trust (NTRS), through its subsidiaries, provides investment management, asset and fund administration, banking solutions, and fiduciary services for corporations, institutions, and affluent individuals worldwide. Gabelli added over 31% to his existing large stake and now holds 1.7M shares. NTRS has performed beautifully these past four years as the ongoing financial turmoil drags on by being able to maintain their respectable 2.9% dividend yield and that alone should make it a high quality financial holding. Add in the fact it's trading at a reasonable 15x trailing P/E, 13x forward P/E, 1.3x P/B, and 1x PEG, makes it an even stronger case to buy a little into NTRS as well.
CONSOL Energy (CNX) engages in the production of multi-fuel energy and provision of energy services primarily to the electric power generation industry in the United States. Gabelli upped his stake by almost 40% and now holds 881,850 shares. This is a quality energy holding trading at a decent 17x trailing P/E, 10x forward P/E, .4x PEG, and 1.2% dividend yield. This isn't a screaming buy in my view, but makes for a solid energy holding.