Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management has been quite active in relation to PowerSecure International, Inc. (NASDAQ:POWR) over the third quarter of 2014. Over the past two months, the fund filed five 13D amendments disclosing changes in its position. In the last one of them, the fund declared beneficial ownership of 1.39 million shares of Common Stock (which includes 280,000 shares of Common Stock underlying over-the-counter American-style call options exercisable until December 20, 2014), down from 1.41 million declared in mid-August, but up from the 1.35 million disclosed by the end of the second quarter of 2014.
This position represents approximately 6.25% of PowerSecure International, Inc. (NASDAQ:POWR)’s outstanding shares of Common Stock, and makes of Becker Drapkin Management the largest hedge fund shareholder –amongst those we keep track of- in the company. Other major hedge funds betting on this company are Philip Hempleman’s Ardsley Partners, which started a position in the company over the second quarter of 2014, with 320,000 shares, worth more than $13 million, and John Bader’s Halcyon Asset Management, which almost doubled its stake over the quarter, to 241,250 shares.
PowerSecure International, Inc. (NASDAQ:POWR) is a $221.76 million market cap company that provides products and services to electric utilities, and their commercial, institutional and industrial customers. Although its margins and returns are still negative, analysts recommend the stock, and expect it to return about 50% over the next 12 months. In addition, Northland Capital recently initiated coverage with an “outperform” rating, while Zacks rated it as a “Strong Buy,” mainly in account of its solid earnings estimate revision activity.
Becker Drapkin Management is a Dallas, Texas-based hedge fund managed by Matthew Drapkin and Steven R. Becker’s Becker. It was founded in 2004, and focuses on small-cap value situations in the U.S. equity markets. It last disclosed an equity portfolio –for the second quarter of the year- worth more than $162 million, mainly focused on information technology, and utilities and telecommunications stocks, which account for 34.3% and 24.1% of its total equity portfolio, respectively. Its largest bets are placed on Comverse Inc (NASDAQ:CNSI) and XO Group Inc (NYSE:XOXO). The fund owns $38 million (1.44 million shares) and $23 million (1.94 million shares) of these companies, respectively. D. E. Shaw also holds stakes in both these companies. The fund owns 184,246 shares of Comverse Inc (NASDAQ:CNSI), and 296,740 shares of XO Group Inc (NYSE:XOXO)
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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