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Longleaf Guru Mason Hawkins—Unloading Aggregates with Construction Set to Rise

March 27, 2013 | About:
Sally Jones

Sally Jones

50 followers
On March 22, 2013, Guru Mason Hawkins, Chairman of Southeastern Asset Management, again reduced his basic materials shares of Martin Marietta Materials, Inc. (NYSE:MLM) by 48.14%, with his current shares now 2,262,363, down from 4,362,121 shares. The current price of MLM is $102, with a change from average down 1%.

Martin Marietta Materials, Inc. is a producer of aggregates for the construction industry. The company also has a Specialty Products segment that manufactures and markets magnesia-based chemical products used in the steel industry. Martin Marietta Materials has a market cap of $4.63 billion. The P/E is 55.2, and the P/S is 2.301.

Mason Hawkins’ holding history of MLM looks like this:



Martin Marietta Materials has attempted to take over its competitor, Vulcan Materials Company (NYSE:VMC) since December 2011. The Vulcan position is that offers from Martin Marietta Materials, first $36.69 per share, then $42 per share, undervalued the company.

As for recent activity, Martin Marietta Material’s fourth quarter 2012 data shows a demand for building materials used in construction and confirms resurgence in the housing market. According to Bloomberg, MML’s fourth quarter shows revenue growth of 20% percent to $504.1 million. The company’s aggregates sales increased 26% to $407.3 million, offsetting the 2% decrease in specialty materials sales, at $50.6 million.

See a recent GuruFocus checkup on Martin Marietta Materials.

See a recent GuruFocus checkup on Vulcan Materials Company.

Finally, here is a summary of activity at Guru Mason Hawkins’ Southeastern Asset Management:



GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (7 votes)

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