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Pennant Capital’s Fournier - Adds Again, USAP Down 20%
Posted by: Sally Jones (IP Logged)
Date: April 5, 2013 04:57PM
It appears that Guru Alan Fournier, Pennant Capital Management, has faith in stainless steel as the metal of today and the future, despite raw steel production in the U.S. being down 8.2% compared to a year ago. What’s not to love about the corrosion-fighting, heat-tolerant metal? Stainless steel is strong, beautiful, reflective and recyclable.
As of April 3, 2013, Fournier, increased his Universal Stainless & Alloy Products (USAP) position by 0.62% for the eleventh time in 2013. Fournier added 7,000 shares at an average price of $34.92 per share, for a total of 1,133,021 shares after the trade. Ownership is filed as Pennant Capital Management and the Broadway Gate Master Fund Ltd. Fournier’s hedge fund Pennant Capital is listed as 10% owner of Universal Stainless & Alloy Products.
Pennant Capital Management’s portfolio lists 42 stocks with a total value of $4.7 billion, and a quarter-over-quarter turnover of 10%. The Pennant Capital portfolio heavyweight sectors are currently technology 28.7%, consumer cyclical 17.7%, and healthcare 13.7%.
Fournier’s USAP holding history shows an average share price of $38.07 with losses every quarter since he first bought in second quarter 2011:
Other Gurus John Keeley and Scott Black sold out their USAP stakes as of the quarter ending June 30, 2012. Check here for other Guru trades of USAP.
Universal Stainless & Alloy Products (USAP) is headquartered in Bridgeville, Pa. The company manufactures stainless steel, an iron and chrome alloy, as well as tool steel and other alloys. With a market cap of $234.47 million, Universal Stainless & Alloy Products has a P/E ratio of 15/8 and a P/S ratio of 1.0. In the last decade, except for 2004, Universal Stainless Steel Products shows positive earnings in eight out of 10 years and a positive operating cash flow. Influenced by a highly competitive global steel industry, Universal’s margin fluctuations are considered typical of steel companies.
Here are the company’s 10-Year Financials:
USAP data by GuruFocus.com
Take a look at Guru Alan Fournier’s top buys, top sells and top holdings.
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Guru Discussed: Alan Fournier: Current Portfolio, Stock Picks
Stocks Discussed: USAP,