In this article, we will take a look at the top 5 stock picks of Mark Lee’s Mountaineer Partners. If you are interested in reading about the history, investment philosophy, and hedge fund preference of Mark Lee’s Mountaineer Partners Management, you can go directly to Top 10 Stock Picks of Mark Lee’s Mountaineer Partners.
5. Olin Corporation (NYSE:OLN)
Mountaineer Partners Management’s Stake Value: $10.825 million
Percentage of Mountaineer Partners Management’s 13F Portfolio: 7.88%
Number of Hedge Fund Holders as of Q2 2021: 37
Olin Corporation (NYSE: OLN), headquartered in Clayton, Missouri, is a manufacturer of chemical products and ammunition. The company provides its products to the United States government.
Mountaineer Partners Management held 233,987 shares in Olin Corporation (NYSE: OLN) by the end of Q2 2021, which had a combined worth of over $10 million. Scott Ferguson’s Sachem Head Capital held the largest stake in the company as of the end of Q3 2021, with 11,950,000 shares worth over $576 million.
On October 21, Olin Corporation (NYSE: OLN) reported its Q3 revenue of $2.34 billion, falling short of the consensus by $10 million. However, on October 25, P.J. Juvekar, an analyst at Citigroup Inc., raised the firm’s price target on Olin Corporation (NYSE: OLN) to $66 from $64 and maintained a “Buy” rating on the shares. The same day, Michael Sison, an analyst at Wells Fargo, also raised the firm’s price target on Olin Corporation (NYSE: OLN) to $75 from $69 and maintained an “Overweight” rating on the shares.
4. Caleres Inc (NYSE:CAL)
Mountaineer Partners Management’s Stake Value: $11.119 million
Percentage of Mountaineer Partners Management’s 13F Portfolio: 8.09%
Number of Hedge Fund Holders as of Q2 2021: 18
Caleres Inc (NYSE: CAL) is a footwear company that owns brands such as Fergie footwear, Dr. Scholl’s Shoes, Bzees, and Franco Sarto. The company is headquartered in Clayton, Missouri, and was founded in 1875.
On November 19, the company announced its Q3 revenue of $784.16 million, which demonstrated a year-over-year growth of 21.1%, and beat the estimated revenue by $30.48 million. Similarly, the Q2 2021 EPS was reported as $1.54, which beat the estimates by $0.39.
Mountaineer Partners Management held 407,439 shares of the company by the end of Q2 2021, which had a combined worth of over $11 million. The largest stake in the company as of the end of the third quarter of 2021 was held by George Mccabe’s Portolan Capital Management, which held 597,952 shares with a total value of over $13 million.
3. Constellium SE (NYSE:CSTM)
Mountaineer Partners Management’s Stake Value: $11.242 million
Percentage of Mountaineer Partners Management’s 13F Portfolio: 8.18%
Number of Hedge Fund Holders as of Q2 2021: 28
Constellium SE (NYSE: CSTM) manufactures and distributes rolled aluminum products to its clients around the globe. Mountaineer Partners Management held 593,230 shares of the company as of Q2 2021, which were worth over $11 million. The institutional investor with the largest stake in the company as of the end of the third quarter of 2021 was Jared Nussbaum’s Nut Tree Capital with 3,300,000 shares that had a combined worth of over $61 million.
On September 9, Emily Chieng, an analyst at Goldman Sachs, initiated the coverage of Constellium SE (NYSE: CSTM) with a “Buy” rating and set a 12-month price target of $25.
ClearBridge Investments, an investment management firm, published its “Small Cap Value Strategy” Q2 2021 investor letter in which it shared some insights about Constellium SE (NYSE: CSTM). Here is what the firm said about Constellium SE (NYSE: CSTM) in its Q2 2021 investor letter:
“We continue to find companies we believe fit this description at reasonable prices, such as Constellium, a new position in the second quarter. Constellium is an aluminum processor with a history of excess returns on capital above cost that has lagged during a major capacity increase to serve the auto industry, which should see strong demand given aluminum’s favorable environmental characteristics relative to steel.”
2. Eagle Materials, Inc. (NYSE:EXP)
Mountaineer Partners Management’s Stake Value: $11.298 million
Percentage of Mountaineer Partners Management’s 13F Portfolio: 8.22%
Number of Hedge Fund Holders as of Q2 2021: 36
Headquartered in Dallas, Texas, Eagle Materials, Inc. (NYSE: EXP) manufactures building materials such as concrete, gypsum, and cement. 79,500 of its shares were held by Mountaineer Partners Management by the end of the second quarter of 2021. The fund newly acquired these shares in Eagle Materials, Inc. (NYSE: EXP) during the second quarter of 2021.
On October 26, Anthony Pettinari, an analyst at Citigroup Inc., raised the firm’s price target on the company from $167 to $170 and maintained the previously set “Buy” rating on its shares. On October 28, Eagle Materials, Inc. (NYSE: EXP) announced its Q2 revenue as $510 million, beating estimates by $4.13 million. The Q2 2021 revenue demonstrated a year-over-year growth of 13.9%.
L1 Capital, an investment management firm, published its ‘L1 Capital International Fund’ first quarter 2021 investor letter in which it mentioned Eagle Materials, Inc. (NYSE: EXP). Here is what the firm stated about Eagle Materials, Inc. (NYSE: EXP) in its Q1 2021 investor letter:
“Contributors to the gains were broad based, with the decision to selectively increase exposure to more cyclical sectors such as U.S. housing delivering strong returns. Eagle Materials, a high quality but below the radar building products company, was featured in the December 2020 quarterly report. Pleasingly, the market began to recognise the quality of this business and its strong cashflow and earnings outlook. Its share price increased by 33% during the March 2021 quarter.”
1. Spirit AeroSystems Holdings, Inc. (NYSE:SPR)
Mountaineer Partners Management’s Stake Value: $11.864 million
Percentage of Mountaineer Partners Management’s 13F Portfolio: 8.63%
Number of Hedge Fund Holders as of Q2 2021: 35
Spirit AeroSystems Holdings, Inc. (NYSE: SPR) is the manufacturer of aerostructures such as components of the Boeing aircraft. The company was established in 2005 and is headquartered in Wichita, Kansas.
On November 3 this year, Spirit AeroSystems Holdings, Inc. (NYSE: SPR) announced its earnings. The company’s revenue for Q3 2021 was $980 million, which demonstrated year-over-year growth of 21.6% yet missed estimates by $30 million. Moreover, the EPS for Q3 2021 was reported to be -$1.09, which missed the estimated EPS by $0.39. Before this, on October 21, Ken Herbert, an analyst at RBC Capital, initiated the coverage of Spirit AeroSystems Holdings, Inc. (NYSE: SPR) with an “Outperform” rating and set a price target of $62 on its shares.
You can also take a peek at the 15 Dividend Stocks People Buy for Early Retirement and 10 Best Tech ETFs to Buy According to Reddit.
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