Matt Drapkin’s Becker Drapkin Management Keeps Trimming Its Stake in This Stock

Nevertheless, since the beginning of 2015, the stock has already lost 11%, despite reporting a couple of weeks ago that it added around $15 million in new distribution generation, utility infrastructure and energy efficiency businesses. However, PowerSecure International, Inc. (NYSE:POWR)’s stock plummeted by over 50% over the last 52 weeks, taking a hard hit at the beginning of May, after posting disappointing financial results for the first quarter of 2014, which showed a decrease in revenue and a loss of $0.19 per share.

The company meanwhile managed to recover slightly, reducing the loss to $0.02 per share in the third quarter, and analysts expect PowerSecure International, Inc. (NYSE:POWR) to turn back to profit in 2015, with its estimated expected consensus EPS amounting to $0.20, on revenue of $318 million. The company has not yet reported its financial results for 2014, but the consensus EPS loss amounts to $0.35, with revenue of $244 million.

Therefore, it looks like Becker Drapkin found the right time to buy into PowerSecure International, Inc. (NYSE:POWR), by betting on the stock to recover right after the stock dropped on the back of first quarter financial results. A similar strategy was adopted by other investors who either purchased new stakes, or boosted their positions during the second quarter of 2014. However, at the end of June, the position in PowerSecure represented more than 8% of Becker Drapkin’s equity portfolio, versus less than 1.0% in the 13F portfolios of other funds, among those that we track. However, at the end of the third quarter, as Becker Drapkin disclosed trimming its stake by 18%, Ken Grossman and Glen Schneider’s SG Capital Management disclosed a new position in PowerSecure, which contains 917,900 shares, representing 2.86% of the fund’s equity portfolio. Andy Redleaf‘s Whitebox Advisors boosted its stake by 260% during the second quarter, and by 8% during the third quarter to almost 234,900 shares held as of the end of September, but the stake represented only 0.08% of the total equity portfolio.

Analysts also seem optimistic on PowerSecure International, Inc. (NYSE:POWR)’s future prospects, as the stock has an average price target of $15.90, while the consensus rating is ‘Buy’

Disclosure: none