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August 11, 201052-Week Low Wrap-Up: Mirant, Hudson City Bancorp, Hewlett-Packard

August 11, 2010 | About:
Patrick Goldin

Patrick Goldin

2 followers
Today, 134 companies' share price reached a new 52-week low. Of these companies, these are the ones that could present an opportunity at the current price.

Mirant (MIR)

Mirant is an energy company that produces and sells electricity in the United States. The Company owns or leases 10,076 megawatts of net electric generating capacity in the Mid-Atlantic and Northeast regions and in California.

Hudson City Bancorp (HCBK)

Hudson City Bancorp serves as the holding company of its only subsidiary, Hudson City Savings Bank. The principal asset of Hudson City Bancorp is its investment in Hudson City Savings Bank. Hudson City Savings is a federally chartered stock savings bank. It conducts its operations out of its corporate offices in Paramus in Bergen County, New Jersey and through 131 branches in the New York metropolitan area.

Hewlett-Packard (HPQ)

Hewlett-Packard Company (HP) is a global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.

Northwest Pipe (NWPX)

Northwest Pipe manufactures pipes and tubes. The company's water transmission segment manufactures and markets large diameter, high pressure welded steel pipes used primarily for water transmission and treatment in North America. The tubular products segment manufactures electric resistant welded steel pipes for use in construction, agricultural, and industrial applications. The company also manufactures traffic signpost products and propane tanks. The company has not been able to file its two most recent required reports due to an ongoing internal investigation of certain accounting matters, including certain revenue recognition practices. The last report it filed was on August 7, 2009. Northwest's CEO resigned on April 2, 2010 and the company’s President has assumed the role.

This is all evidence that points to serious mistakes, real fraud, negligence, ineffectiveness, or all of the above. Given all the above, the current share price may represent an excellent opportunity for purchase given the potential for forced or irrational selling due to the company’s inability to timely file its required reports.

Since investors have not seen a balance sheet or income statement for slightly over nine months, there is a large amount of uncertainty surrounding the value and the company and therefore the company should be valued by tangible book value or on a liquidation value. From their balance sheet as of June 30, 2009, the tangible book value per share is $29.43.

About the author:

Patrick Goldin
Patrick Goldin is the General Partner of the Alain Value Fund LP, a limited partnership exercising a value-focused and bottom-up securities approach. In addition to his duties as general partner, he is a student in high school. He can be reached at patrick.goldin@alainvaluefund.com

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