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June 30, 2010 52-Week Low Wrap-Up: Arrow Financial, Bank of New York Mellon, Blackrock, Brink’s Company, Cameco, Carrols Restaurant, ENGlobal Energizer, ExxonMobil

Patrick Goldin

Patrick Goldin

2 followers
Today, 208 companies’ share prices reached a new 52-week low. Of these companies, these are the ones that look interesting based upon my initial research:

AK Steel (AKS)

Ohio-based AK Steel is a leading producer of flat-rolled carbon, stainless, and electrical steel and tubular products. Its products are sold primarily to the automotive industry (40% of sales), the appliance, industrial machinery, and construction industries (30%), and independent service centers (30%).

Arrow Financial (AROW)

Arrow Financial is the holding company for its two subsidiaries, Glens Falls National Bank and Trust Co. and Saratoga National Bank and Trust Co., which together operate over thirty banking offices in eastern New York. The banks provide checking, saving, money-market, and individual retirement accounts, as well as certificates of deposit. In addition, the banks offer estate-services, credit-card-processing services for other banks, and corporate pension, profit-sharing, and employee-benefit-administration services.

Bank of New York Mellon (BK)

Bank of New York Mellon was created by the July 2007 merger between Mellon Financial and Bank of New York. The resulting entity is one of the world's largest financial services companies. Through its custody operations, BNY Mellon is a leader in providing back-office services to other financial firms. The bank's asset-management and private banking operations serve institutional and high-net-worth individuals globally.

Blackrock (BLK)

BlackRock provides asset management services primarily for institutional investors, which account for 75% of the firm's AUM. BlackRock has more than $3 trillion invested in equity/hybrid (46% of total AUM), fixed-income (32%), and money market (10%) funds, with the remainder in multi-asset class, alternative investment, and long-term portfolio liquidation strategies. Passive equity and fixed-income funds account for half of BlackRock's managed assets.

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.

Cameco (CCJ)

Canada-based Cameco is an integrated nuclear energy company involved in uranium mining, conversion services, and power generation. The company is the world's largest uranium producer and owns some of the richest deposits. Cameco participates in power generation through a stake in Bruce Power, a large Canadian nuclear power facility. Cameco also owns stakes in Centerra Gold, a publicly traded gold miner, and GLE, a uranium enrichment company.

Carrols Restaurant (TAST)

Carrols Restaurant Group operates restaurants in the quick-service restaurant segment. It owns and operates several restaurant brands, including Pollo Tropical and Taco Cabana. While the company owns most of these restaurants, it has franchised a small number of these two brands in the United States, Puerto Rico, and Ecuador. Carrols also operates over 300 Burger King restaurants under franchise agreements.

ENGlobal (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.

Energizer (ENR)

Energizer Holdings is the second-largest manufacturer of batteries in the U.S., selling them under the Energizer and Eveready names. It also makes industrial batteries and rechargeables for use in items such as computers and digital cameras. The company was spun off from Ralston Purina in 2000. It acquired Schick-Wilkinson Sword, the second-largest razor and blade business, in 2003, and in fall 2007 it acquired Playtex Products.

ExxonMobil (XOM)

Exxon is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2009, it produced 2.4 million barrels of oil and 9.3 billion cubic feet of natural gas a day. At year-end 2009, reserves stood at 14.95 billion boe (plus 8.03 billion for equity companies), 62% of which are oil. The company is the world's largest refiner with 37 refineries, and it is one of the world's largest manufacturers of commodity and specialty chemicals.

FBR Capital Markets (FBCM)

FBR Capital Markets is an indirect taxable REIT, a subsidiary of Friedman, Billings, Ramsey & Co., a full-service investment banking, trading, research and asset management firm. By separating the capital markets and asset management businesses, FBR Group created FBR Capital Markets to allow investors to invest in the capital markets business at FBR.

Federated Investors (FII)

Federated provides investment-management services for institutional and individual investors. Mutual funds represent around 80% of the firm's AUM, with the remainder in separately managed accounts and liquidation portfolios. At the end of the first quarter of 2010, Federated's AUM was comprised of equity (9%), fixed-income (10%), liquidation (3%) and money market (78%) funds. Products are distributed directly to institutions, as well as through financial intermediaries.

Goldman Sachs (GS)

Goldman Sachs is a global investment banking firm whose activities are organized into investment banking, trading and principal investments, and asset-management and securities services segments. The firm recently reorganized itself as a bank holding company regulated by the Federal Reserve.

Harbinger (HRG)

Harbinger Group Inc. is a holding company. The Company owns approximately 98% of Zap.Com Corporation . On July 9, 2009, Harbinger Capital Partners Master Fund I, Ltd. , Global Opportunities Breakaway Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. (Special Situations Fund and together with the Master Fund and Global Fund, the Company’s principal stockholders) purchased 9,937,962 shares of its common stock. As a result, the company is controlled by Phillip Falcone and has a market cap of $123 compared with equity of $143.3

Harsco (HSC)

Harsco is an industrial services firm that operates four business units. The Mill Services unit recovers manufacturing byproducts and streamlines material usage. Access Services rents scaffolding and concrete forming products to the construction industry. Heat Transfer equipment, railroad maintenance products and metal grating are a few of the products developed by the Engineered Products group. Gas Technologies produces precision valves and canisters for the gas industry.

Mastech (MHH)

Mastech Holdings specializes in providing information technology and human capital consulting services. The company primarily concentrates on consulting in the areas of data warehousing, resource planning, service oriented architecture, business analysis, eCommerce development and infrastructure support. Mastech also engages in design, development and maintenance of custom applications and software packages.

Monsanto (MON)

Monsanto is one of the world's leading providers of agricultural inputs, including seeds, biotechnology traits, and herbicides. The company has a presence in more than 100 countries and generated $11.7 billion in sales during its fiscal 2009. The firm's seed and genomics segment generated 67% of companywide gross profit in 2009, while the herbicide segment contributed 33%.

Morgan Stanley (MS)

Morgan Stanley is a global investment bank with history through its legacy firms that can be traced back to 1924. The company has institutional securities, wealth management, and asset management segments and more than 60,000 employees. The company derives about half of its total revenue outside the Americas.

Nomura (NMR)

Nomura Holdings is the largest securities and investment banking firm in Japan. Its primary lines of business include retail investment services, fixed-income and equity trading, mergers and acquisition advisory services, merchant banking, and asset management. Nomura was founded in Osaka, Japan, in 1925 by Tokushichi Nomura II. The company is currently based in Tokyo.

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.

O’Charley’s (CHUX)

O'Charley's operates and franchises casual dining, full-service restaurants. The company operates more than 200 O'Charley's restaurants in Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Virginia, Ohio, Indiana, Illinois, and Tennessee. The company is also a partner in Logan's Partnership, which operates three Logan's Roadhouse restaurants in Kentucky and Tennessee. Both O'Charley's and Logan's specialize in steaks and bakery products.

State Street (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.

Tidewater (TDW)

Tidewater operates the world's largest fleet of service vessels, which are contracted by offshore energy firms. These vessels transport supplies and personnel to offshore rigs and tow mobile rigs to new destinations worldwide. The firm also operates Quality Shipyards, a wholly owned subsidiary that constructs and repairs vessels. Since its founding in 1955, Tidewater has expanded its fleet from a single vessel to approximately 400 vessels.

Tejon Ranch (TRC)

Tejon Ranch owns around 270,000 acres of land north of Los Angeles. Although at one time used almost exclusively for agricultural purposes, the majority of income is now earned through transactions related to real estate. The company owns and operates an industrial complex on the land, which leases space to industrial and commercial users, as well as ranching and recreational facilities. Agricultural operations still produce significant portions of revenue, earned through the sale of fruits, vegetables and nuts to commercial buyers

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: 2.5/5 (4 votes)

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