Glenn Welling is bullish on Boulder Brands Inc (NASDAQ:BDBD), having significantly increased his investment in the company. According to a recent filing with the Securities and Exchange Commission, Welling’s fund, Engaged Capital, has boosted its stake in the company to 5.86 million shares or 9.6% of the company’s common stock. In its latest 13F filing, Engaged Capital had reported ownership of just 410,686 shares, having initiated that position during the first quarter of 2015. So, why exactly is Glenn Welling buying so much of this stock? Let’s try to find out.
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Follow Glenn W. Welling's Engaged Capital
A producer of natural and wellness food products, Boulder Brands Inc (NASDAQ:BDBD) has a market cap of $433 million and does not pay a dividend. So far this year the stock has been battered, falling by 36%. For the three months ending March 31, 2015, Boulder Brands posted revenues of $129 million and earnings per share of $0.04. Analysts expect the company to report revenues of $124 million and earnings of $0.01 per share for the second quarter, the results from which are scheduled to be released on August 6, before the market opens.
On June 10, Boulder Brands Inc (NASDAQ:BDBD) announced the departure of Chief Executive Officer and co-founder Steve Hughes, citing need for “new leadership”.
“This change, along with the evolving dynamics of our industry, gives us confidence that we are well-positioned to leverage customer and consumer desires for authentic and scalable natural brands to deliver sustainable results and generate meaningful value creation,” the company commented in its press release.
The company has attracted the attention of a number of hedge fund gurus we follow, among them Mario Gabelli and Ken Griffin. Gabelli’s GAMCO Investors holds approximately 2.88 million shares, according to its latest 13F report, while Griffin’s Citadel Investment Group reportedly holds 121,218 shares, up by 40% during the first quarter of 2015.
Another stock that Welling is betting big on is Jamba, Inc. (NASDAQ:JMBA), Engaged Capital’s biggest equity position, and one in which Welling sits on the Board of Directors, to which he was appointed at the beginning of the year. The fund’s holding of this stock has grown by more than 60,000 shares since the figure reported in its latest 13F filing, now standing at 1.64 million shares. Engaged Capital recently reported a new addition to its portfolio – Magnachip Semiconductor Corp (NYSE:MX), a South Korea-based semiconductor manufacturer. According to a filing with the SEC, Welling has acquired approximately 2.51 million shares and is therefore in control of 7.3% of the company’s total number of shares outstanding. TriMas Corp (NASDAQ:TRS) is also a favorite of Welling’s, with Engaged Capital reporting ownership of 716,672 shares, up by 60% during the first quarter of 2015. Generally, Glenn Welling seems to prefer tech stocks, which account for roughly a quarter of his portfolio. He has also invested a significant amount of his capital into consumer discretionary and industrial stocks and has a well diversified portfolio, with an approximate market value of $134 million.
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