Hedge Funds Have Bought Altisource, Beazer Homes, and More

Rowan Companies PLC (NYSE:RDC), a $4.4 billion market cap contract driller, had First Pacific Advisors report owning 7.3 million shares of the stock or nearly 6% of the company. First Pacific is managed by Robert Rodriguez and Steven Romick (check out more stocks First Pacific owns). While Rowan’s sales have been up, this seems to have been due to higher production with poorer pricing conditions contributing to a steep fall in net income. While the drop in prices has resulted in Rowan being valued at 26 times trailing earnings, the sell-side expects the company to recover and so the current-year P/E and the five-year PEG ratio are 15 and 0.5 respectively.

First Pacific also reported that it had increased its ownership of Trinity Industries, Inc. (NYSE:TRN) to a total of 3.1 million shares. Trinity is a $3.3 billion market cap company which is primarily a manufacturer and lessor of railcars. Its other lines of business include construction materials and barges. In the third quarter of 2012, the company reported a 19% increase in revenue versus a year earlier and earnings were up sharply. Being as tied to transportation as it is the stock carries a beta of 2.4. At 14 times trailing earnings, it is a candidate for value status given its strong performance as long as investors are comfortable with that level of exposure to the broader economy.

Disclosure: I own no shares of any stocks mentioned in this article.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!