On March 6, 2013,
, chairman of Southeastern Asset Management, reduced his shares
of Martin Marietta Materials
by 21.96%, with his current shares now at 4,362,121. The current
price of MLM is $104.7, with a change from average of 3%. Since
December 2011 Martin Marietta Materials has attempted to buy out
Vulcan Materials Company
, first making a hostile takeover bid of $4.8 billion for VMC at
$36.69 per share, followed by an unsolicited offer of $5.5
billion in May 2012 at $42 per share. According to the Birmingham
Business Journal, Vulcan Materials got an injunction blocking
Martin Marietta Materials from pursuing a hostile takeover. The
Vulcan position was that the MLM offer undervalued the company
and was too optimistic about the possible merger benefits. Time
will tell if MLM will offer a higher price in a friendly
Meanwhile, it looks like many investor Gurus are unloading
aggregates and basic materials companies MLM and VMC for now.
and John Griffin sold out their MLM shares in December 2012, and
Steven Cohen reduced his MLM by 96.44%. In the last quarter of
2012, investor Gurus Bruce Kovner, Jim Simons and Tom Russo sold
out their stakes in VMC. Currently, Steven Cohen has only 8,744
shares of his VMC stake after his reductions in third quarter
2012. Here's an in-depth analysis of Vulcan Materials Company.
A recent GuruFocus checkup on MLM shows that Martin Marietta
Materials revenue has been in decline by 8.7% for the last five
years, and the gross margin has been in long-term decline with
the average rate of decline per year at 7.4%. The company's
operating margin has been in a five-year decline with an average
rate of decline per year at 13.8%. Cash flow from operations
shows a severe divergence from the reported net income, which may
suggest that the company is not receiving payment from its
customers or it has other activities affecting its cash flow.
The GuruFocus checkup also found three medium warning signs: The
MLM stock dividend yield (1.53%) is close to three-year low of
1.53%. The MLM price ($104.88) is close to 3-year high of
$104.88, and the MLM P/S ratio (2.3663) is close to five-year
high of 2.59. See MLM history here.
Martin Marietta Materials, Inc. was formed in 1993 as a North
Carolina corporation to serve as successor to the materials group
that is now Lockheed Martin Corporation. The MLM company is a
producer of aggregates for the construction industry, including
infrastructure, commercial, agricultural and residential. Martin
Marietta Materials also has a Specialty Products segment that
manufactures and markets magnesia-based chemical products used in
industrial, agricultural and environmental applications. MLM also
sells dolomitic lime mainly to customers in the steel industry.
The company operates in four reportable business segments: the
Mideast Group, Southeast Group, and West Group, and collectively
the Aggregates business and the Specialty Products segment. Mason
Hawkins' holding history of MLM looks like this:
As of Feb. 29, 2012, Martin Marietta Materials owns, has the
right to use or has pending applications for approximately 98
patents pending or granted, and approximately 107 trademarks
related to business.
Here is a summary of trading activity at Southeastern Asset
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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