Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Mohnish Pabrai, Dalal Street Buy Some More Horshead Holding Corp. Shares

Dalal Street, the fund managed by Mohnish Pabrai, disclosed, in a new filing with the SEC, buying some more shares of HORSEHEAD HOLDING CORP. (NASDAQ:ZINC). According to the filing, Dalal Street purchased in total 248,575 shares of the company, raising its holding to almost 6.3 million shares. The additional shares have been acquired in three transactions, the average price amounting to $13.99 apiece.


Mohnish Pabrai’s fund has been bullish on Horsehead Holding for some time now. Just a couple of weeks ago, the fund disclosed buying some other 327,000 shares of the company. However, in those deals, the price has been a bit lower, at $12.00 and $12.75 per share.

Horsehead is engaged in production of zinc and nickel-based products, with main markets in North America. The stock of the company already gained over 38% since the beginning of the year, and trails a forward P/E ratio of 18.7. At the end of October, the company conducted a public offering in which it sold 5.5 million shares of common stock for $12.00 apiece, plus additional 825,000 shares offered for underwriters. The net proceeds from the offering amounted to over $72 million.

For the previous quarter, Horshead posted a net loss of $3.5 million, equal to $0.08 per diluted share. The company managed to narrow its net loss over the year, from $9.1 million in the same period of 2012. The company is also finishing the building of its zinc production facility in North Carolina, and plans to begin production by the end of 2013. In terms of EBITDA, the company plans to gain between $90 and $110 million. The total costs of the project are situated at around $490 million. Aside from that, Horshead is expanding another its facility, the project coinciding with the closure of its Monaca zinc oxide refinery planned for the end of the year.

Chuck Royce’s hedge fund Royce & Associates also reported holding shares of Horsehead Holding. Its stake amasses around 4.5 million shares.

Disclosure: none

Recommended Reading:

Did Mr. Market Overreact to David Tepper’s Acquisition of J.C. Penney?

Here’s What Influential Billionaire John Paulson Has Been Buying

Hedge Funds Watching these 5 Gold Mining Stocks if the Dollar Falls

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!