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

March 27, 2013 | About:
Sally Jones

Sally Jones

49 followers
On March 22, 2013, Guru Mason Hawkins, Chairman of Southeastern Asset Management, again reduced his basic materials shares of Martin Marietta Materials, Inc. (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 (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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