10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Mario Gabelli Thirsty for LAYN

April 06, 2013 | About:
Sally Jones

Sally Jones

49 followers
Known for its water systems and water treatment know-how, Layne Christensen Company (LAYN) is a global water management, construction and drilling company that explores and builds infrastructure for water, mineral and energy resources. Operating on a decentralized basis, the company has approximately 80 offices located in the United States as well as in Australia, Africa, Mexico, Canada, Brazil and Italy.

As of April 4, 2013, GAMCO Investors’ Chairman and Chief Executive Officer Mario Gabelli increased his LAYN position by 11.87%, with total shares at 1,583,862. This latest add impacts his portfolio by 0.03%. The current LAYN share price is $20.51.

As a drilling company, Layne Christensen Company (LAYN) has four primary markets: water-related products and services, mineral exploration drilling, geotechnical construction and oil and gas production and services. Layne Christensen's customer base includes municipalities, investor-owned water utilities, industrial companies, global mining companies, consulting engineering firms, heavy civil construction contractors, oil and gas companies, as well as agribusiness.

Last month the company reported revenues of approximately $230 million, fourth quarter fiscal 2013, preliminary. The company expects losses (before income taxes in fourth quarter fiscal 2013) to be between $34 million and $38 million. President and CEO of Layne Christensen, Rene J. Robichaud explained, “In our Mineral Exploration segment we have been able to significantly reduce operating costs in response to the moderation of the global commodity super-cycle that has driven results for the last several years. In the last few months, many of our customers have cut back on exploration programs, especially in Australia and Africa, as they adjust to world economic changes and in some cases work through the integration of large acquisitions. Our opinion is that this market will be soft for the first half of FY 2014, but could begin to rebound in the second half of this year as long as gold and copper prices remain stable.”

Robichaud cited losses incurred from the company’s Heavy Civil project that were much greater than expected, and from two of its divisions Water Resources and Energy Services, as well as losses from operations. Robichaud also said that company has taken significant steps to address the impact of these losses, and that it intends to generate approximately $20 million in the upcoming months with non-strategic asset sales.

In Gabelli’s history with LAYN, the investor Guru shows an average cost of $22 per share, with an overall 7% loss as of quarter ending Dec. 31. 2012.

His holding history:



Layne Christensen Company (LAYN) has grown revenue at an annual rate of 10.6%, EBITDA at 10.3% and book value at 16.2% over the last 10 years. The company has a market cap of $407.7million. The P/B ratio is 0.9, and the P/S ratio is 0.3525. LAYN stock is down 7% over 12 months, and 17% year to date.

Here’s a detailed analysis of LAYN.

As of April 5, 2013, the GAMCO Investors portfolio managed by Gabelli shows 792 stocks with a total value of $13.61 billion, and a quarter-over-quarter turnover of 6%.

Here’s a look at Mario Gabelli’s recent top buys, sells, and holdings:



Here’s what other top investors Gurus are doing with LAYN.

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: 3.6/5 (8 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK