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Mohnish Pabrai's Increase in Zinc Producing Horsehead Holdings
Posted by: Monica Wolfe (IP Logged)
Date: June 26, 2013 05:21PM
As of the first quarter, Mohnish Pabrai held six stocks valued at over $340 million. Pabrai made his first real-time addition to his holdings on June 21 with his increase of his holdings in the company Horsehead Holding Company (ZINC).
Pabrai increased his holdings in Horsehead by 8.26% adding an additional 173,092 shares on June 21. He purchased these shares at an average price of $12.13 per share. Since his most recent increase the price has dropped 1% and is currently trading at around $11.98 per share. After this buy, Pabrai owned 2,268,373 shares of Horsehead Holding Company, representing approximately 5.36% of the company’s shares outstanding.
On June 24, Mohnish made an additional buy into the company. Pabrai increased his stake once more, adding 193,757 shares and representing an 8.54% increase in his holdings of Horsehead. Pabrai bought these shares at an average price of $12.04 per share. He now holds 2,462,130 shares of the company’s stock.
Pabrai made his initial buy into the company in the fourth quarter of 2008, and since then he has seen an increase of approximately 237.1% in share prices.
Mohnish Pabrai’s holding history as of March 31:
Horsehead is the largest zinc producer in the U.S. and the leading manufacturer of value-added zinc products including zinc oxide and zinc powder. Horsehead also maintains an electrothermic smelting facility, which is the only one of its type in the Western Hemisphere.
The company’s first quarter results reported:
· Consolidated net income of $2.8 million, or $0.06 per diluted share, compared to a net loss of $(8.5) million, or $(0.19) per share, for the first quarter of 2012.
· Cost of sales decreased $13.5 million to $100.0 million.
· Adjusted EBITDA was $12.4 million compared to $11.2 in the same quarter 2012.
On June 25, investment advisor firm Dalal Street bought 173,092 share of Horsehead Holding for $2,088,165.
Horsehead Holding has a market cap of $527.5 million; its shares were traded at around $11.98 with a P/S ratio of 1.20.
The analysis of Horsehead Holding reports:
· Revenue has been in decline for past year.
· Price close to 2-year high of $13.30.
· The P/S ratio at 1.21.
The historical price, revenue and net income of Horsehead:
There are currently five gurus that hold a stake in Horsehead. Click here to view the holding histories of these gurus.
Guru Discussed: Mohnish Pabrai: Current Portfolio, Stock Picks
Stocks Discussed: ZINC,