Investment guru David Nierenberg (Trades, Portfolio) likes to keep a concentrated portfolio of undervalued companies. In each of the first two quarters of this year, he made four moves – both times he added to two stakes and bought two new ones. Nierenberg founded the D3 Family of Funds, which manages $350 million in four private investment partnerships
Nierenberg’s two new stakes in the second quarter were Flotek Industries Inc. (FTK, Financial) and Geospace Technologies Corp. (GEOS, Financial).
Flotek Industries is a Houston-based supplier of drilling and production products and services for the energy and mining industries. Nierenberg purchased a 647,000-share stake in the company for an average price of $13.51 per share. The transaction had a 9.88% impact on Nierenberg’s portfolio.
Flotek Industries has a market cap of $909.74 million and an enterprise value of $959.78 million. It has a P/E of 57.9, a Price/Book of 3.2 and a Price/Sales of 2.3. Ron Baron (Trades, Portfolio), Robert Bruce (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) have shares of Flotek Industries in their portfolios.
Houston-based Geospace Technologies designs and manufactures scientific instrumentation and equipment used by the petroleum industry to collect seismic data. Nierenberg bought a 92,700-share stake in the company for an average price of $20.81 per share. The deal had a 2.6% impact on Nierenberg’s portfolio.
Geospace Technologies has a market cap of $191.97 million and an enterprise value of $146.75 million. It has a Price/Book of 0.6 and a Price/Sales of 2.0. Chuck Royce (Trades, Portfolio) and Richard Snow (Trades, Portfolio) have shares of Geospace Technologies in their portfolios.
Last week, Geospace Technologies established a new 52-week low of $14.63 per share.
Nierenberg also added to two existing stakes in his portfolio – Houston Wire & Cable Co. (HWCC, Financial) and Malibu Boats Inc. (MBUU, Financial).
As he has done in every quarter since initially investing in the Houston-based industrial equipment wholesaler a year ago, Nierenberg acquired 477,000 shares of Houston Wire & Cable, more than doubling his stake for an average price of $9.39 per share. The purchase had a 5.77% impact on Nierenberg’s portfolio.
Houston Wire & Cable has a market cap of $124.59 million and an enterprise value of $166.25 million. It has a P/E of 14.5, a Price/Book of 1.2 and a Price/Sales of 0.4. Chuck Royce (Trades, Portfolio), Charles Brandes (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of Houston Wire & Cable in their portfolios.
Nierenberg added 76,030 shares to his stake in Malibu Boats, a Loudon, Tenn.-based maker of recreational boats, for an average price of $21.67 per share. The acquisition had a 1.86% impact on Nierenberg’s portfolio.
Malibu Boats has a market cap of $265.21 million and an enterprise value of $281.73 million. It has a P/E of 95.2, a Price/Book of 8.2 and a Price/Sales of 1.2. Among the gurus, Nierenberg is the leading shareholder in Malibu Boats, but Chuck Royce (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) also have shares in the company in their portfolios.
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