My Concentrated GARP portfolio had a positive month in July as the portfolio gained 5.6% for the month, while the S&P 500 index rose 5%. As has been the case in many summers, market trading volumes are currently much lower, but what is surprising is volatility has remained muted.
I suspect this will change as the onset of fall approaches. Many valuations in stocks have become full and it is much more difficult to find quality merchandise on sale. Still, the harder one looks the more one finds.
Gigamedia (GIGM): The company reported preliminary earnings in July that were better than expected. I look forward to hearing more about their new Gigacloud business when they report in August.
Digital Globe (DGI) is a satellite provider of commercial earth imagery and information services. Digital Globe will report earnings on August 6, 2013.
Corelogic (CLGX): The company is an information provider which specializes in data about real estate related industries. A large part of their data centers on property and mortgage information services. In addition, they provide credit information in a variety of industries as well. The company had a good earnings report, raised and updated their guidance for 2013, and upped their buyback.
Cass Information Systems (CASS): Cass provides information, invoice, and payment processing services to a wide variety of enterprises in the United States. Cass also has a small banking division as well. The company reported earnings in-line with expectations:
Dolby Laboratories (DLB): Dolby provides audio and video products for the entertainment industry on a global scale. Much of their revenues come from licensing their technologies on personal computers, laptops, tablets, and smartphones.
In addition, they make sound systems for a wide variety of customers, from movie studios, theatres, and network and satellite television providers. The company reported earnings which were better than expected estimates but reduced guidance for the rest of 2013.
Jamba Juice (JMBA) is a health food and beverage retailer with a presence in 26 states domestically, as well as operations in Canada, the Philippines, and South Korea. The company reports earnings on August 5, 2013 and recently added to their credit agreement with Wells Fargo.
Cash America (CSH) is a largest operator of pawn shops in the United States. The company reported disappointing earnings for the second quarter of 2013.
Build A Bear Workshop (BBW): Provider of build your own teddy bears for small children. The company reported improved earnings, which continues their recent trend.
To learn more about the Concentrated GARP Portfolio, click here.
The investments discussed are held in client accounts as of July 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.
