On March 6, 2013,
, fund manager of Pennant Capital Management, made his seventh
add of Universal Stainless & Alloy Products (
) stock in a string of adds this year. With this latest increase
of 0.76%, Fournier owns 1,103,668 USAP shares at the average
price of $36.15. USAP's stock price continues to fluctuate
slightly since its drop on Jan. 28, 2013 to $32.78.
[u][/u]Alan Fournier is a value investor who pays attention to
the both the micro and macro picture. Pennant Capital
Management's portfolio lists 42 stocks with a total value of $4.7
billion, and a quarter-over-quarter turnover of 10%. The Pennant
Capital portfolio heavyweight sectors are currently technology
28.7%, consumer cyclical 17.7% and healthcare 13.7%.
In a competitive global industry, USAP shows sales of $250.9
billion, and a profit of $14.6 billion, with products selling to
the original equipment manufacturer as well as the middle man
service centers of forgers, wire drawers and rerollers. USAP's
specialty bar facilities are reputed to be among the most diverse
producers in the industry for product size, range and capability.
Serving industrial and military customers in the aerospace,
automotive and heavy equipment industries, USAP competes with
both domestic and foreign producers of specialty steel products.
Headquartered in Bridgeville, Pa., and established in 1994,
Universal Stainless & Alloy Products has a market cap of
$249.7 million; its shares were traded around $36.22 with a P/E
ratio of 15.1 and P/S ratio of 1. Universal Stainless & Alloy
Products had an annual average earnings growth of 11.9% over the
past 10 years. Over the last 10 years, USAP has had positive
earnings in eight of those years and positive operating cash flow
in almost every single year in the past decade except for 2004.
Any mood swing in the company's gross and net margins reflects
economic conditions and the competitive global steel industry
that takes hits from unfair pricing practices from afar.
USAP Annual Growth
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