Ksa Capital Management Ups Stake in AEP Industries (AEPI)

Daniel Khoshaba‘s Ksa Capital Management increased its stake in AEP Industries (NASDAQ:AEPI). The current position amounts to 1.07 million shares, 21.00% of the company’s total common stock. Previously, the fund owned around 925,000 shares of AEP, according to its latest 13F filing.

Incorporated in 1985 and based in South Hackensack, New Jersey, AEP Industries (NASDAQ:AEPI) is a leading worldwide manufacturer of over 15,000 types of multi-purpose and flexible packaging films for the consumer, industrial, and agricultural markets. Producing over one billion pounds of film per year, the company’s main products include custom films, canliners, food contact, printed and converted films, and stretch wrap. Design Poly Bag Corp. and Rhodes Plastics Corp. are AEP’s principal subsidiaries. In 2012, the company announced that it has entered into an agreement to purchase the films business of Transco Plastics Industries Ltd., a Quebec company, for approximately $5.30 million.

In 2013, the company generated net profits of $10.75 million ($1.93 per share), almost half the result of $23.15 million ($4.20 per share) for 2012. Expected to produce losses of $1.89 per share for the whole current year, AEP Industries (NASDAQ:AEPI) generated losses of $0.67 per share in the first quarter of 2014. Brendan Barba, Chief Executive Officer of the company, said that AEP’s results were affected primarily by the inability to fully pass higher resin costs through to the customers and by the impact of lower volumes sold due to the intensely competitive environment in which the company is currently operating.  The company’s stock fell more than 50.00% in the past 12 months, currently trading at around $36.00.

Jim Simons‘ Renaissance Technologies and Jean-Marie Eveillard‘s First Eagle Investment Management are two other funds which hold significant positions in AEP Industries (NASDAQ:AEPI). The former owns approximately 455,000 shares worth $24.00 million, while the latter holds nearly 175,000 shares worth $9.20 million.

Almost 60.00% of Ksa Capital Management’s $213.20 million worth equity portfolio is invested in the Consumer Goods Sector. The fund is also considerably exposed to Motorola Solutions Inc (NYSE:MSI), of which it owns 188,000 shares.

Disclosure: none

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