David Nierenberg (Trades, Portfolio), founder of D3 Family of Funds, maintains a concentrated portfolio and habitually makes only a handful of deals in each quarter. He made five transactions in the third quarter, exceeding his activity in each of the first two quarters by one. All but one of his third-quarter deals involved companies based in Houston.
Nierenberg’s third-quarter activity consisted of additions to existing stakes in his portfolio. The most noteworthy was the addition of 302,048 shares to his stake in Geospace Technologies Corp. (GEOS, Financial), a Houston-based designer and manufacturer of scientific instrumentation and equipment used in the petroleum industry.
Nierenberg paid an average price of $16.64 per share in a deal that raised his stake by nearly 326% and had a 6.05% impact on his portfolio.
Geospace Technologies has a market cap of $138.69 million and an enterprise value of $118.27 million. It has a forward P/E of 555.6, a P/B of 0.5 and a P/S of 1.6. GuruFocus has given Geospace Technologies a Financial Strength rating of 4/10 and a Profitability and Growth rating of 4/10.
The purchase made Nierenberg Geospace Technologies’ leading shareholder among the gurus with 394,748 shares in his portfolio. Chuck Royce (Trades, Portfolio) and Richard Snow (Trades, Portfolio) also have shares of Geospace Technologies in their portfolios.
Earlier this week, Geospace Technologies reached a new 52-week low of $10.36. Geospace Technologies sold for $10.60 per share Friday afternoon.
Nierenberg increased his stake in Malibu Boats Inc. (MBUU, Financial), a Loudon, Tennessee-based recreational boats manufacturer, by more than 20%. Nierenberg bought 88,551 shares for an average price of $18 per share. The transaction had a 1.8% impact on Nierenberg’s portfolio.
Malibu Boats has a market cap of $271.27 million and an enterprise value of $327.98 million. It has a P/E of 14.6 and a P/S of 1.1. GuruFocus has given Malibu Boats a Financial Strength rating of 6/10 and a Profitability and Growth rating of 4/10.
Nierenberg is Malibu Boats’ leading shareholder among the gurus with 530,249 shares in his portfolio. Chuck Royce (Trades, Portfolio), Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of Malibu Boats in their portfolios.
In the last four weeks, Malibu Boats’ share price has gone up more than 6%; in the last week it has outperformed the Standard & Poor’s 500 by more than 4%. It has outperformed the S&P by nearly 7% in the last four weeks.
On Friday Malibu Boats sold for $15.17 per share.
Nierenberg purchased 310,000 shares of C&J Energy Services Ltd. (CJES, Financial), a Houston-based provider of well construction, well completions and well services to the oil and gas industry. Nierenberg paid an average price of $7.3 per share in a deal that had a 1.58% impact on his portfolio and increased his position by nearly 23%.
C&J Energy Services has a market cap of $580.05 million and an enterprise value of $1.75 billion. It has a forward P/E of 12.6, a P/B of 0.6 and a P/S of 0.3. GuruFocus has given C&J Energy Services a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10.
Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) also have shares of C&J Energy Services in their portfolios.
C&J Energy Services sold for $4.78 per share Friday.
Nierenberg bought 60,000 shares of Flotek Industries Inc. (FTK, Financial), a Houston-based supplier of drilling and production products and services to the energy and mining industries, for an average price of $13.51 per share. The deal had a 1.45% impact on Nierenberg’s portfolio and increased his stake by more than 9%.
Flotek Industries has a market cap of $578.11 million and an enterprise value of $639.87 million. It has a P/E of 147.7, a forward P/E of 41.7, a P/B of 2.0 and a P/S of 1.5. GuruFocus has given Flotek Industries a Financial Strength rating of 8/10 and a Profitability and Growth rating of 6/10.
Ron Baron (Trades, Portfolio), Robert Bruce (Trades, Portfolio), Pioneer Investments (Trades, Portfolio) and T Boone Pickens (Trades, Portfolio) have shares of Flotek Industries in their portfolios.
On Friday Flotek Industries sold for $10.70 per share.
Nierenberg increased his stake in Houston Wire & Cable Co. (HWCC, Financial), a Houston-based industrial equipment wholesaler, by less than 1%. Nierenberg bought 5,000 shares for an average price of $8.24 per share in a transaction that had a 0.05% impact on his portfolio.
Houston Wire & Cable has a market cap of $91.2 million and an enterprise value of $137.48 million. It has a P/E of 16.1, a forward P/E of 10.2, a P/B of 0.9 and a P/S of 0.3. GuruFocus has given Houston Wire & Cable a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.
Chuck Royce (Trades, Portfolio) and Charles Brandes (Trades, Portfolio) have shares of Houston Wire & Cable in their portfolios.
Houston Wire & Cable hit a new 52-week low Monday of $5.54 per share. It sold for $5.49 per share Friday.
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