Royce & Associates Owns Over 10% of Molex

Page 1 of 2

Royce & Associates, a fund managed by Chuck Royce which tends to prefer investing in small-cap and mid-cap companies, has reported that it owns 8.3 million shares of Molex Incorporated (NASDAQ:MOLX), a $5 billion market cap manufacturer of electronics components. The 13G filed with the SEC has this figure as 10.3% of the total shares outstanding. See more of Royce’s stock picks. Our database of 13F filings shows that at the beginning of October Royce had owned 7.6 million shares of the stock, so we know that at least some of these shares have been bought in the last three months. The stock is up 17% in the last year.

Chuck Royce

The first quarter of Molex’s fiscal year ended in September, with the company reporting that revenue had dipped 2% from the same period in the fiscal quarter ending September 2011. With expenses showing little change, Molex Incorporated had most of that decline in revenue drop into operating income. As a result net income was down 11% from a year earlier. Much of the downturn in business is due to the Connector segment, which is responsible for over two-thirds of Molex’s revenue; the Custom & Electrical division saw a small rise in revenue and a small decline in operating income.

Molex Incorporated is valued at 19 times trailing earnings in the market, a multiple at which we’d expect to see moderate and sustainable growth in order to consider a stock a potential value play. Wall Street analyst expectations are for earnings growth in the next year, as shown by the fact that the P/E is only 16 when we consider consensus earnings for the fiscal year ending in June 2014, but of course the sell-side may be being a bit bullish and we’re certainly not as confident that Molex will reverse the recent performance of its business.

Edgar Wachenheim’s Greenhaven Associates owned 1.3 million shares of Molex at the end of September, roughly unchanged from what it had owned three months earlier (find more stocks that Wachenheim owned). Ascend Capital, managed by Malcolm Fairbairn, and David Harding’s Winton Capital Management were two other hedge funds reporting substantial positions in the stock.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!