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June 4, 2010 52-Week Low Wrap-Up: ArcelorMittal, Banco Bilbao Vizcaya Argentaria, Banco Santander, Brink’s Company, Calamos Asset Management, Credit Suisse

Patrick Goldin

Patrick Goldin

2 followers
Today, 118 companies’ shares set a new 52-week low. Of these companies, these are the ones that look interesting based on my initial research.

ArcelorMittal (MT)

ArcelorMittal is the world's largest steel producer, with an established presence in all major steel markets and steelmaking operations in 20 countries. The company produces long and flat steel products, using a combination of integrated and mini-mill plants, and has significant mining operations in iron ore and coal.

Banco Bilbao Vizcaya Argentaria (BBVA)

Banco Bilbao Vizcaya Argentaria is the second-largest bank in Spain, among the largest in Europe, and a rapidly growing bank in the Americas. It earns about 40% of its profit in Spain and Portugal, 35% in Mexico and the U.S., 15% through its global business investment and asset-management unit, and 10% in Latin America. BBVA has grown rapidly lately, primarily through acquisitions. Most recently, it acquired four banks in the U.S., including Compass in 2007. The shares have been beaten down due to the fiscal problems of both Spain and Portugal, but at the right price, this could be a very good opportunity.

Banco Santander (STD)

With nearly $1.5 trillion assets and close to 14,000 branches, Banco Santander is one of the world's largest financial institutions. Its main focus is retail banking (about 75% of operations). It also has a wholesale bank (nearly 25%) and an insurance and asset-management venture. Around half of its business is conducted in Europe, with a heavy emphasis on Spain. The U.K. and Latin America segments account for roughly 30% and 20% of total operations, respectively. This idea is similar to Banco Bilbao Vizcaya Argentaria, in that while the situation in Spain looks dire, these companies represent good banking franchises that are worth owning at the right price.

Brink’s Company (BCO)

The Brink’s Company is a provider of secure transportation, cash logistics and other security-related services to banks and financial institutions, retailers, government agencies, mints, jewelers and other commercial operations worldwide. The Company’s international network serves customers in more than 50 countries and employs approximately 59,400 people. Its operations include approximately 875 facilities and 10,500 vehicles. 71% of its revenues are from outside North America.

Calamos Asset Management (CLMS)

Calamos provides investment management advice and services to institutional and individual investors. The firm offers more than a dozen mutual funds and five closed-end funds, as well as separately managed accounts. Two of the firm's funds--Calamos Growth and Calamos Growth and Income--account for more than 40% of AUM.

Credit Suisse (CS)

Credit Suisse is a global financial services company and operates the second-largest private bank in Switzerland. In 2009, it generated about 60% of its revenue through investment banking; 35% through private banking, which includes wealth management (30%) and corporate and retail banking (5%); and 5% through asset management.

Duff & Phelps (DUF)

Duff & Phelps is a provider of independent financial advisory and investment banking services. The Company provides independent advice on issues involving highly technical and complex assessments in the areas of valuation, transactions, financial restructuring, disputes and taxation. Its clients include publicly-traded and privately-held companies, government entities, and investment firms, such as private equity firms and hedge funds. The Company provides its services through three segments: Financial Advisory, Corporate Finance Consulting and Investment Banking

ENGlobal Corporation (ENG)

ENGlobal provides industrial products and consulting services, primarily for oil and gas firms. The company also serves various municipalities and communications firms. The company manufactures power products, such as battery chargers, instrumentation and control systems, and monitoring systems. Services provided by the company include field services, network modeling, and air emissions consulting.

Euronet Worldwide (EEFT)

Euronet is an electronic payment provider, offering EFT processing, prepaid phone and debit card sales, and money transfer services. The company operates more than 10,000 ATMs and a network of approximately 430,000 point-of-sale terminals for electronic processing of prepaid mobile airtime. It originates transactions through a network of 75,800 money transfer locations in more than 100 countries. Euronet generates roughly 75% of its revenues from its non-U.S. operations.

Firstbank Corporation (FBMI)

Firstbank is a bank holding company for five bank subsidiaries that conduct business in Michigan. Each subsidiary operates as a full-service community bank and they collectively operate approximately 40 branches. The branches offer traditional services including the acceptance of checking, savings and time deposits, and lending mortgage, commercial, home improvement, automobile, and other consumer loans. Firstbank subsidiary Gladwin Land provides real estate appraisal services. Other non-bank subsidiaries include an armored car company and a title insurance firm.

GAMCO Investors (GBL)

GAMCO Investors is a provider of investment advisory services to mutual funds, institutional and private wealth management investors, and investment partnerships, principally in the United States. Through Gabelli & Company, Inc. (Gabelli & Company), it provides institutional research services to institutional clients and investment partnerships. It generally manages assets on a discretionary basis and invests in a variety of United States and international securities through various investment styles. Its revenues are based primarily on the firm’s levels of assets under management and to a lesser extent, incentive fees associated with its various investment products.

Hilltop Holdings (HTH)

Hilltop Holdings is a holding company that anticipates seeking to make strategic acquisitions and investments with certain of the proceeds from its asset sale which was completed in July 2007. Hilltop currently owns a property and casualty insurance operation, NLASCO, Inc. (“NLSACO”) located in Waco, Texas, that focuses on providing fire and homeowners insurance for low value dwellings and manufactured homes primarily in Texas and other areas of the south, southeastern and southwestern United States.

Hornbeck Offshore Services (HOS)

Hornbeck Offshore has one of the largest offshore supply vessel fleets, which it uses to transport goods and supplies to and from offshore rigs and platforms, primarily in the Gulf of Mexico. It also has a large fleet of tug and tank barges, which mostly transport petroleum in the Northeastern United States. Hornbeck has several new multipurpose supply vessels on order, which are expected to better address clients' needs for larger vessels.

Mitsubishi UFJ Financial (MTU)

Mitsubishi UFJ was formed by the 2005 merger of Mitsubishi Tokyo Financial Group and UFJ Holdings. It is one of the world's largest financial services companies, with commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing operations. Headquartered in Tokyo, Mitsubishi UFJ does business in more than 40 countries.

Nokia (NOK)

Nokia is the world's largest manufacturer of mobile devices and a leader in mobile network equipment and software. The company's mobile phones provide consumers with experiences in voice, video, gaming, navigation, imaging, and music. Through its 50%-owned Nokia Siemens Networks joint venture, the company provides equipment and services to network operators, service providers, and corporations.

Northwest Pipe (NWPX)

Northwest Pipe manufactures pipes and tubes. The company's water transmission segment manufactures and markets large diameter, high pressure welded steel pipes used primarily for water transmission and treatment in North America. The tubular products segment manufactures electric resistant welded steel pipes for use in construction, agricultural, and industrial applications. The company also manufactures traffic signpost products and propane tanks. The company has not been able to file its two most recent required reports due to an ongoing internal investigation of certain accounting matters, including certain revenue recognition practices. The last report it filed was on August 7, 2009. Northwest's CEO resigned on April 2, 2010 and the company’s President has assumed the role.

This is all evidence that points to serious mistakes, real fraud, negligence, ineffectiveness, or all of the above. Given all the above, the current share price may represent an excellent opportunity for purchase given the potential for forced or irrational selling due to the company’s inability to timely file its last two required reports.

Since investors have not seen a balance sheet or income statement for slightly over nine months, there is a large amount of uncertainty surrounding the value and the company and therefore the company should be valued by tangible book value or on a liquidation value. From their balance sheet as of June 30, 2009, the tangible book value per share is $29.43.

Penson Worldwide (PNSN)

Penson Worldwide provides securities-processing infrastructure products and services to the global securities and investment industry. Its products and services include securities and futures clearing, margin lending, facilities management, technology, and other related offerings to broker-dealers, hedge funds, banks, and financial technology firms.

RailAmerica (RA)

RailAmerica, Inc. is an owner and operator of short line and regional freight railroads in North America, operating a portfolio of 40 individual railroads with approximately 7,400 miles of track in 27 Unites States and three Canadian provinces. During the year ended December 31, 2009, its railroads transported over 800,000 carloads of freight for approximately 1,500 customers, hauling a range of products, such as farm and food products, lumber and forest products, paper and paper products, metals, chemicals and coal. The Company provides its freight services under a contract or similar arrangement with either the customer located on its rail line or the connecting Class I railroad. Contracts and arrangements vary in terms of duration, pricing and volume requirements.

Seacor Holdings (CKH)

Seacor Holdings operates a fleet of offshore support vessels and helicopters that service oil and gas production facilities. It also operates a fleet of petroleum, chemicals, and crude product tankers. The company also has inland river barges and towboats that transport bulk commodities. Overall, the firm owns, leases, pools, and manages nearly 200 vessels.

State Street Corporation (STT)

State Street is one of the largest trust banks worldwide, combining banking, asset servicing, and asset-management operations. The company also offers services such as foreign exchange, cash management, credit, and electronic trading to help customers negotiate complex global financial markets efficiently. State Street Global Advisors, its asset management arm, is the world's largest institutional money manager and a leading provider of ETFs.

Disclosure: The author holds shares in Brink's Company (BCO).

About the author:

Patrick Goldin
Patrick Goldin is the General Partner of the Alain Value Fund LP, a limited partnership exercising a value-focused and bottom-up securities approach. In addition to his duties as general partner, he is a student in high school. He can be reached at patrick.goldin@alainvaluefund.com

Rating: 2.8/5 (5 votes)

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