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Janus makes value plays
Fund family buys more than 10% of four companies
By Justin Wiser, CBS.MarketWatch.com
Last Update: 4:07 PM ET Feb 12, 2001
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WASHINGTON (CBS.MW) - Is the 1990s' most-heralded growth mutual-fund family changing its spots?
__ Janus managers had "something of a wake-up call in 2000, seeing their insensitivity about valuations come back to bite them."
Christine Benz,Morningstar
Janus has taken large stakes in four beaten-down stocks -- Ames Department Stores, American Tower, Grupo Televisa and Insight Enterprises, according to regulatory filings. Shares of all four are more than 40 percent below their 52-week highs, with Ames selling at a fraction of its peak price.
Janus managers had "something of a wake-up call in 2000, seeing their insensitivity about valuations come back to bite them," said Christine Benz, a senior analyst with Morningstar.
Mandatory disclosure
The Denver-based fund giant disclosed the purchases Friday in a Schedule 13G filing with the U.S. Securities and Exchange Commission. Mutual funds must file a 13G within 10 days of any month in which they acquire more than 10 percent of a company's stock.
Janus officials couldn't be reached for comment Monday. The company isn't required to state in the filing which of its funds invested in which of the stocks.
Most out of character for Janus is Ames (AMES: news, msgs) , a regional discount retailer trading at a price-to-earnings ratio of 5. Its 450 stores in 19 states posted $4 billion in sales last year.
Ames' stock fell from a 12-month high of $30 to less than $1 in December, but since recovered ground to close Friday at $4.50. Analysts polled by First Call/Thomson Financial expect 13 percent annual earnings growth in the next five years.
American Tower (AMT: news, msgs) , a long-time holding of Janus Enterprise manager Jim Goff, is the largest operator of broadcast towers in North America. It provides network-development services and leases space on its towers to wireless service providers.
Its stock, which reached $55 last year, closed Friday at $33.09. Analysts expect 38 percent annual earnings growth over the next five years.
"We think they're going to be continuing to add tenants, and continuing to add towers," said John Coates, a Salomon Smith Barney analyst, who expects the stock to reach $55 by year's end.
Grupo Televisa (TV: news, msgs) is a Mexican media conglomerate whose American depositary receipts trade on the New York Stock Exchange. It has interests in television, radio, cable, satellite services and feature films in the Spanish-speaking world, and owns a stake in U.S.-based Univision, a Spanish-language TV broadcaster.
Analysts expect Grupo Televisa's earnings to grow 15 percent annually. Its stock is down from a high of $87 to a close of $50.31 Friday.
Insight Enterprises Inc. (NSIT: news, msgs) is a global direct marketer of name-brand computer products. It sells software and equipment from such companies as Gateway, Compaq and Microsoft to small and mid-size businesses.
Its revenues rose 34 percent to $2 billion in 2000, and earnings are expected to grow 27 percent annually over the next five years.
The stock sells at a P/E of 20, even after climbing almost 50 percent in the month of January. It closed Friday at $26.75, well off its 52-week high of $43.
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Justin Wiser is a reporter for CBS.MarketWatch.com in Washington.
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