(GuruFocus, August 10, 2009) Investment Gurus at Third Avenue Management has reduced their positions in electrical building wire and cable company Encore Wire Corporation (WIRE, Financial). GuruFocus Data shows Third Avenue Management reduced 28.01% of its stake in WIRE on August 10, 2008 at the price of $22.7 per share. After the sale, Third Avenue still holds 2,587,000 shares.
Encore Wire Corporation is a low-cost manufacturer of copper electrical building wire and cable. The Company is a significant supplier of both residential wire for interior electrical wiring in homes apartments and manufactured housing as well as building wire for electrical distribution in commercial and industrial buildings. Encore Wire Corp. has a market cap of $522 million; its shares were traded at around $22.7 with a P/E ratio of 17.6 and P/S ratio of 0.5. The dividend yield of Encore Wire Corp. stocks is 0.3%. Encore Wire Corp. had an annual average earning growth of 16.9% over the past 10 years.
Encore Wire Corporation is a low-cost manufacturer of copper electrical building wire and cable. The Company is a significant supplier ofboth residential wire for interior electrical wiring in homes apartments and manufactured housing as well as building wire for electrical distribution in commercial and industrial buildings. Encore Wire Corp. has a market cap of $522 million; its shares were traded at around $22.7 with a P/E ratio of 17.6 and P/S ratio of 0.5. The dividend yield of Encore Wire Corp. stocks is 0.3%. Encore Wire Corp. had an annual average earning growth of 16.9% over the past 10 years.
Third Avenue Management started to own WIRE in 2Q07 with a small position of 783,988 when the stock ended the quarter at $29.44. It built a position of 3,964,861 shares through 2Q07 when the stock dropped to $18.21. It held the position until 1Q09 when the firm sold about 370,000 shares (less than 10%). The latest sale is yet another attempt but more significant step to reduce exposure.
Wire's business has been impacted by the slowdown in the Real Estate. Its earning has declined from peak time $4.95 per share in 2006 to $1.34 per share for the past twelve months ended on March 31, 2009.
On July 22, the company announced quarterly results for the quarter ended on June 30, 2009. Net sales for the second quarter ended June 30, 2009 were $159.4 million compared to $322.8 million during the second quarter of 2008. Lower prices for building wire sold in the quarter ended June 30, 2009 accounted for most of the decrease in net sales dollars, declining 38.1% per copper pound sold versus the same period in 2008. Unit sales in the second quarter of 2009 decreased 20.2% versus the second quarter of 2008. Sales prices fell primarily due to lower copper prices and building wire industry competition. Net income for the second quarter of 2009 was $0.6 million versus $1.3 million in the second quarter of 2008. Fully diluted net earnings per common share were $0.03 in the second quarter of 2009 versus $0.06 in the second quarter of 2008.
GuruFocus provides Real Time Guru Picks and Insider Buys/Sells information for Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
Encore Wire Corporation is a low-cost manufacturer of copper electrical building wire and cable. The Company is a significant supplier of both residential wire for interior electrical wiring in homes apartments and manufactured housing as well as building wire for electrical distribution in commercial and industrial buildings. Encore Wire Corp. has a market cap of $522 million; its shares were traded at around $22.7 with a P/E ratio of 17.6 and P/S ratio of 0.5. The dividend yield of Encore Wire Corp. stocks is 0.3%. Encore Wire Corp. had an annual average earning growth of 16.9% over the past 10 years.
Encore Wire Corporation is a low-cost manufacturer of copper electrical building wire and cable. The Company is a significant supplier ofboth residential wire for interior electrical wiring in homes apartments and manufactured housing as well as building wire for electrical distribution in commercial and industrial buildings. Encore Wire Corp. has a market cap of $522 million; its shares were traded at around $22.7 with a P/E ratio of 17.6 and P/S ratio of 0.5. The dividend yield of Encore Wire Corp. stocks is 0.3%. Encore Wire Corp. had an annual average earning growth of 16.9% over the past 10 years.
Third Avenue Management started to own WIRE in 2Q07 with a small position of 783,988 when the stock ended the quarter at $29.44. It built a position of 3,964,861 shares through 2Q07 when the stock dropped to $18.21. It held the position until 1Q09 when the firm sold about 370,000 shares (less than 10%). The latest sale is yet another attempt but more significant step to reduce exposure.
Wire's business has been impacted by the slowdown in the Real Estate. Its earning has declined from peak time $4.95 per share in 2006 to $1.34 per share for the past twelve months ended on March 31, 2009.
On July 22, the company announced quarterly results for the quarter ended on June 30, 2009. Net sales for the second quarter ended June 30, 2009 were $159.4 million compared to $322.8 million during the second quarter of 2008. Lower prices for building wire sold in the quarter ended June 30, 2009 accounted for most of the decrease in net sales dollars, declining 38.1% per copper pound sold versus the same period in 2008. Unit sales in the second quarter of 2009 decreased 20.2% versus the second quarter of 2008. Sales prices fell primarily due to lower copper prices and building wire industry competition. Net income for the second quarter of 2009 was $0.6 million versus $1.3 million in the second quarter of 2008. Fully diluted net earnings per common share were $0.03 in the second quarter of 2009 versus $0.06 in the second quarter of 2008.
GuruFocus provides Real Time Guru Picks and Insider Buys/Sells information for Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
