Tontine Asset Management Cuts Stakes in Westmoreland Coal Company (WLB) and Patrick Industries, Inc. (PATK)
Jeffrey Gendell‘s Tontine Asset Management has decreased its ownership of Westmoreland Coal Company (NASDAQ:WLB) and Patrick Industries, Inc. (NASDAQ:PATK). A recent 13G filing shows that the fund sold 75,000 shares of Westmoreland for a equivalent total value of almost $2.00 million. The current position amounts to 1.55 million shares, which represent a 10.40% stake in Westmoreland Coal. In another filing, Tontine disclosed selling almost 58,000 shares of Patrick Industries for a total of $2.58 million, reducing the position to 2.50 million shares – a 23.50% activist stake in the company.
Positioned as the lowest-cost fuel supplier in the U.S., Westmoreland Coal Company (NASDAQ:WLB) is a premier energy company emphasizing on mine-mouth operations, which include six surface coal mines in Montana, Wyoming, North Dakota and Texas, and two coal-fired power-generating units in North Carolina. The company claims to operate some of the cleanest, and highly utilized coal-fired utility-owned power plants in the country. In 2012, the Company acquired Chevron Corporation (NYSE:CVX)’s Kemmerer coal mine in Wyoming. Selling 24.90 million tons of coal, the company generated total revenues of $674.70 million in 2013, a 12.40% increase with respect to the previous year, and produced a net loss of $4.70 million. The same year, Westmoreland entered into an
agreement to acquire Sherritt International Corporation (TSE:S)’s coal mining business. The company’s stock price dipped 30% in the past 12 months to a current price of around $3.55. Market analysts suggest that investors should buy the stock, and estimate a loss of $1.76 per share in 2014.
Nelson Obus‘ Wynnefield Capital is another large shareholder of Westmoreland Coal Company (NASDAQ:WLB), owning a position of almost 750,000 shares worth $14.26 million.
Patrick Industries, Inc. (NASDAQ:PATK), founded in 1959, is the leading U.S. manufacturer of building products and materials for the Recreational Vehicle and Manufactured Housing Industries. The company also supplies products to Industrial market customers. In 2013, Patrick Industries generated net income of $24.00 million, an equivalent of $2.24 per share. Analysts expect steady growth in earnings for the next two years, estimating EPS of $2.60 in 2014. The average analyst recommendation is “Buy”.
Other funds holding positions in Patrick Industries, Inc. (NASDAQ:PATK) are Richard Driehaus‘ Driehaus Capital and Jim Simons‘ Renaissance Technologies. Driehaus owns a $3.65 million worth position of 126,000 shares, while Renaissance owns a $2.30 million position 79,500 shares of the company.
Around 75% of Tontine Asset Management’s equity portfolio is allocated in the Financial and Industrial Goods Sectors. Patrick Industries constituted around 12.50% of the fund’s portfolio at the end of last year. The fund also holds a considerable position of 10.37 million shares worth nearly $56.00 million in Integrated Electrical Services, Inc. (NASDAQ:IESC).