Iridian Asset Management Owns 6% of W.R. Grace

Page 1 of 2

A 13G filed with the SEC has disclosed that Iridian Asset Management, a special situations fund managed by David Cohen and Harold Levy, now owns 4.5 million shares of W.R. Grace & Co. (NYSE:GRA). W.R. Grace is a $5.4 billion market cap specialty chemicals company best known for its catalysts which are used to convert oil into transportation fuels. In the third quarter of 2012, Iridian increased its stake in the company by 52%, to a total of 2.7 million shares; this new filing reports an increase of 67% from that level. We calculate that at the current stock price of about $71.80 per share Iridian’s position is worth over $320 million, which would make it among the largest- if not the largest, as it would have been in Q3- positions by market value in the fund’s portfolio. Find more of Iridian’s favorite stocks.

W.R. Grace & Co. (NYSE:GRA)

In the third quarter of 2012, W.R. Grace & Co. experienced a 10% decline in revenue; this reversed the trend of top-line growth that the company had shown in the first half of the year. While W.R. Grace did reduce its COGS and SGA expenses, and margins actually improved despite the fall in sales, earnings did end up decreasing by 7%. The catalyst business, which is the largest source of revenue and responsible for over half of segment operating income, was the primary culprit: revenue and operating income there were each down close to 20%.

The markets are pricing in a recovery at the company, with the current price representing a trailing P/E of 21. Wall Street analyst consensus is for significant earnings growth in 2013- the current-year P/E is only 16- and certainly Cohen, Levy, and their team have to be depending on an improved bottom line at the company. However, we would be wary of investing in a stock with that multiple unless it showed actual prospects of a turnaround.

See more funds that owed W.R. Grace and compare the company to its peers:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!