As of March 28, 2013, fund manager Guru
, Pennant Capital Management, made his tenth add of Universal
Stainless & Alloy Products
stock in 2013, increasing his position by 0.84%, for a total of
1,126,021 shares. Ownership is filed as Pennant Capital
Management and the Broadway Gate Master Fund Ltd. The current
share price is $36.35, up 1%.
Headquartered in Bridgeville, Pa., Universal Stainless &
manufactures specialty steel products, including stainless steel,
tool steel and other alloyed steels. Fournier's hedge fund
Pennant Capital is 10% owner of USAP, established in 1994.
Universal Stainless sells to service centers in the manufacturing
His holding history:
The global demand for steel is projected to increase by 3.2% in
2013, with most of the demand coming from China. However, the
largest steel producer in the world, China's domestic production
of steel meets its consumption for building new urban
infrastructure for the ever-increasing urban population.
USAP's products fill demands for steel and alloys in industrial
markets such as aerospace, automotive and heavy equipment.
Globally, USAP competes with domestic and foreign producers of
specialty steel products. The U.S. produced a fraction of steel,
88.6 million tons in 2012, compared to Asia's 716.5 million tons
of crude steel, according to data from the World Steel
Universal Stainless & Alloy Products has a market cap of $253
million; its shares are traded around $36.35 with a P/E ratio of
17.2 and P/S ratio of 1.0796. Universal Stainless Steel Products
shows positive earnings in eight of the last 10 years and
positive operating cash flow, except for 2004. The company's
margins fluctuate with economic conditions and the influence of a
competitive steel industry.
USAP 10-Year Financials
USAP data by GuruFocus.com
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
Take a look at Guru Alan Fournier's top buys, top sells,and top
Steeled and steely on USAP in the first quarter of 2013, Pennant
Capital's string of USAP adds may reflect the steel company's
expansion and a rebounding steel industry.
GuruFocus "Real Time Picks" reports the stock purchases and sales
that Gurus have made within the prior 2 weeks. The report time
lag can be as short as 2 days after the date of the transaction.
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