Three Stocks Kicked by Ken Fisher: PSS World Medical, Inc. (PSSI)

Page 1 of 2

Ken Fisher FISHER ASSET MANAGEMENTI am a very enthusiastic reader of Ken Fisher’s Portfolio Strategy column.  Fisher’s investment strategy focuses on knowing information that other market participants do not know, while prioritizing his analysis first with the macro level, then countries and sectors, and then in the end individual stock selection. In his recent blog, he wrote something that caught my attention. Here is an excerpt:

“Last Feb. 27 I purposefully and explicitly rolled all my 2011 picks — every one — into 2012, telling you to double down on them all precisely because I had faith in them even though 2011 was one of those four years where I underperformed. That worked. My recycled 2011 picks added return, helping out. This year I’m going the other way — starting from scratch. I’m recommending you sell my 2012 picks, or at least don’t put any new money in them.”

I was inquisitive to figure out the exits in his recent 13F filing. Out of the 27 exits that Fisher Asset management made, three major ones were Cymer, Inc. (NASDAQ:CYMI)Warnaco Group Inc (NYSE:WRC) and PSS World Medical, Inc. (NASDAQ:PSSI). Two common factors among these is that they came out with mixed earnings in 3Q12 and had lower 4Q12 estimates. And, these three companies were further acquired by other companies. Let’s analyze these stocks in detail.

Cymer

Cymer’s 3Q12 results came out mixed as the company reported an EPS of $0.31 beating the consensus estimate of ~$0.07. Revenue came at ~$131 million, which was ~2.2% up from last year, but didn’t meet the consensus estimate of ~$151 million as the company faced low demand of deep ultraviolet (DUV) light source throughout the quarter.

The world leading supplier of light sources, Cymer received an offer to be acquired by ASML Holdings, which is Europe’s largest semiconductor equipment supplier for ~1.95 billion euros. As Cymer is known for developing new ways to pattern semiconductor chips, it will help ASML Holding N.V. (NASDAQ:ASML) in developing Extreme Ultraviolet (EUV) lithography, enabling more transistors to be etched on each microchip thus increasing power.

EUV provides support to the semiconductor industry’s transition and is seeing increasing demand. This should create a significant revenue opportunity for Cymer as well as ASML. However, the semiconductor equipment industry is seeing soft demand in 2013, thus bringing sales estimates down ~10% from flat. The consensus revenue estimate for the company is down to ~$126 million from $155 million, which makes the near-term future of this stock gloomy.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

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!