The Checkup
Last December, Richard Eisinger, portfolio manager of Madison Mosaic Mid-Cap (GTSGX), focused on high-quality, mid-cap stocks.
He favored companies capable of significant growth that sell at reasonable valuations. Here’s how his recommendations have fared.
Markel Corp (NYSE: MKL), a specialty insurer, acquired four new businesses in 2011, adding to its underwriting offerings. Due to increased US catastrophes last year, the company posted its first underwriting loss since 2005.
However, Markel’s revenue still managed to rise 18 percent, to $2.6 billion. That continues the insurer’s double-digit revenue growth year to date. For the first nine months of 2012, revenue is up close to 13 percent. Earnings jumped 140 percent, to $180 million, in the first three quarters.
Markel shares are up 23 percent since recommended.
In 2011, Ritchie Bros. Auctioneers (TSX: RBA, NYSE: RBA) auctioned off $3.7 billion worth of heavy equipment (used and new) at 339 public auctions worldwide, boosting its revenue 11 percent to $396 million.
This year’s sales are expected to rise another 11 percent, to $440 million, as market conditions for used heavy equipment improve. For the first nine months of 2012, the company’s earnings rose almost 23 percent, to $57 million, over the year-ago period. Management expects these trends to continue into 2013.
Roughly 50 percent of Ritchie’s registrations are now Internet bidders. The online segment realized strong growth in the first nine months, as the value of equipment auctioned online increased 24 percent to $952 million.
Shares of Ritchie Bros. Auctioneers have risen 5.7 percent since recommended.
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