Alan Fournier - Tenth Add of USAP in First Quarter

As of March 28, 2013, fund manager Guru Alan Fournier , Pennant Capital Management, made his tenth add of Universal Stainless & Alloy Products ( USAP ) 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 & Alloy Products ( USAP ) 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 sector.

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 Association.

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

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%.

Take a look at Guru Alan Fournier's top buys, top sells,and top holdings.

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. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.About GuruFocus: tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.