Last week, on April 2, guru Mario Gabelli (Trades, Portfolio) did something he has seldom done since 2015 began – he sold a portion of his stake in a company, Myers Industries Inc (MYE, Financial). It is rarer still for him to sell shares in that particular company; Myers has been in his portfolio for years, and Gabelli sold 12,500 shares in the first quarter of 2014. In the rest of the year, he purchased nearly 600,000 shares.
The Akron, Ohio-based Myers is the largest wholesale tire repair supply distributor in the United States as well as a manufacturer of plastic packaging, storage and safety products and specialty molding.
The reduction of Gabelli’s stake came in the wake of Myers’ announcement that, because of apparent financial discrepancies at its manufacturing and distribution centers in Brazil, net income for the fourth quarter and full fiscal year was $2.3 million lower than had been reported earlier.
After the adjustment, Myers lost $8.7 million on $623.7 million in revenue for the year. It originally reported losing $6.4 million. The price of Myers’ shares dropped 11 cents to $17.53 following the announcement last Tuesday. At the close of trading on Monday, Myers’ price was $17.2.
Myers has a market cap of $525.9 million and an enterprise value of $757.65 million. It has a P/E of 0, a P/B of 3.8 and a P/S of 0.8. Gabelli owns more than 4 million shares of Myers with a value of more than $81.6 million.
The day before he sold his shares in Myers, on April 1, Gabelli also sold a portion of his stake in Southfield, Michigan-based Superior Industries International (SUP, Financial), one of the world's largest OEM suppliers of cast aluminum road wheels for the automotive industry.
Superior has a market cap of $513.7 million and an enterprise value of $447.5 million. The company has a P/E of 60.4, a P/B of 1.2 and a P/S of 0.7. Gabelli has more than 2 million shares of Superior in his portfolio worth nearly $42 million.
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