GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Mario Gabelli Buys Almost 5% Stake in Transforming Company

July 01, 2014 | About:
Holly LaFon

Holly LaFon

261 followers

Mario Gabelli (Trades, Portfolio) purchased a new 4.9% stake in HC2 Holdings Inc. (OTCPK:HCHC), a Virginia-headquartered holding company undergoing transformation. The transaction consisted of 685,978 shares of the company, which had a closing price that day of $3.99 per share, far from its 52-week high of $12.71 reached in August 2013.

Until April 9, HC2 operated as PTGi Holding Inc., a wholesale service provider to fixed and mobile network operators globally. On May 13, the company announced it would sell its North American retail telecommunications operations in the U.S. and Canada to York Capital Management for $129 million, while continuing to manage its traditional telecom services with a focus on hosted phone, Ethernet, local and high-speed Internet. The board used proceeds from the sale to pay shareholders a special $8.50 per-share dividend, distributed Aug. 28, the date the stock price dropped dramatically.

HC2’s stock price history:

1404268887698.png

On May 13, HC2 also announced it entered an agreement with SAS Centure LLC to acquire its 2.5 million common shares of Schuff International Inc. for a 60% stake in the company, which is the largest steel fabrication and erection company in the U.S. HC2 plans to continue the company’s work of building complex steel projects and paid $79 million for the stake.

By May 30, HC2 negotiated to acquire an additional 200,000 Schuff International shares, bringing its total interest to 65% of the company. HC2 also appointed a new president and CEO of Schuff, Rustin Roach, a 15-year Schuff veteran, effective June 4.

HC2 ended its second quarter with $13 million in cash on its balance sheet, increased from $8.997 million at 2013 year-end. Its liabilities totaled $28.4 million, down from $33.3 million at year-end.

For more stock picks of Mario Gabelli (Trades, Portfolio), visit his portfolio here. For more stock picks of gurus, visit GuruFocus’ Real-Time Picks. Not a Premium Member of GuruFocus? Try it free for 7 days here!


Rating: 5.0/5 (2 votes)

Voters:

Comments

horacekk
Horacekk - 2 months ago

God Bless you,

My Name is Frank HORACEK, and my Late Father Mr ROSTISLAV HORACEK, from Czech Republic, and we Reside in Libya. please i was a victim of LIBYA Republic in Africa, where many people are been killed as because of political crises, based on that, I had to Ran Away to another part of Country DUBAI UAE where my Late Father had a Deposit of 8.8million Usd.& 100kg of Gold Bars as he was trading on Minerals and Gold as he was an international business Man before He died. 2 years Ago In Libya Crises

My purpose of contacting you is you to assist me execute his WILL as you will be allowed to make use of the deposits for Investment while you take Good care of me and my younger Brother in our education in your country and after our education, you will establish us in our respective professions.contact me only by email for more information Email..frankhoracek3@gmail.com

Remain blessed,
Frank HORACEK
Email..frankhoracek3@gmail.com
Email..frankhoracek3@gmail.com

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