Martin Whitman (Trades, Portfolio) purchased 229,973 shares of Harman International Industries Inc. (HAR, Financial) in the first quarter.
Harman International Industries designs and engineers connected products and solutions for automakers, consumers and enterprises worldwide, including connected car systems, audio and visual products, enterprise automation solutions and connected services with leading brands including AKG, Harman Kardon, Infinity, JBL, Lexicon, Mark Levinson and Revel. More than 25 million automobiles on the road are equipped with Harman audio and connected car systems.
The company's software services power billions of mobile devices and systems that are connected, integrated and secure across all platforms, from work and home to car and mobile. Harman has a workforce of approximately 28,000 people across the Americas, Europe and Asia and reported sales of $6.4 billion during the 12 months ended Sept. 30, 2015.
It is possible Whitman decided to purchase shares because of the company’s strategy for future growth. Harman International Industries plans to continue to design and develop products, solutions and software services for automakers, consumers and enterprises worldwide. The company is also beginning to integrate smart apps such as Apple (AAPL, Financial) CarPlay, Google Automotive Link and China’s Baidu (BIDU, Financial) CarLife into its infotainment systems.
Harman International Industries has a market cap of $5.85 billion, a P/E ratio of 17.31, an enterprise value of $6.48 billion and a P/B ratio of 2.40.
According to GuruFocus Harman International Industries has a Financial Strength rating of 6/10 with a cash-to-debt ratio of 0.42, ranking it below 76% of the 2,241 companies in the Global Consumer Electronics Industry. The company also has a 7/10 Profitability ranking, according to GuruFocus, with an operating margin of 7.57%.
Harman International Industries is also traded in Germany.
Whitman is a Bronx, New York, native who began his investment career upon graduating from Syracuse University with a degree in business administration in 1949. Whitman began his first job, as a security analyst for Shearson Hammill, shortly after graduation. After leaving Shearson Hammill, Whitman had a short tenure as an investment banker for the owners of the Sears Roebuck fortune, the Rosenwald family, who actively managed Sears (SHLD, Financial) department stores in the early 1900s.
He founded M.J. Whitman LLC in 1974, a full service brokerage. This is what Joseph Stiglitz called learning by doing in his wonderful book "Creating a Learning Society." In 1990, Whitman founded Third Avenue Fund, which owns 36 stocks with a total value of $1.18 billion.
Cheers to your investment success.
Disclosure: Author does not currently own any shares of this holding.
