Tredegar Corporation (TG) and Medical Action Industries (MDCI): GAMCO Investors Ups Stakes

GAMCO Investors, the hedge fund run by Mario Gabelli has announced in a regulatory filing with Security and Exchange Commission that it has increased its stake in Tredegar Corporation (NYSE:TG) and Medical Action Industries (NASDAQ:MDCI).

Mario Gabelli with cereal box

The value investor has acquired additional 732,740 shares in Tredegar Corporation (NYSE:TG), increasing its stake to 4.8 million. The 15% holding has a current market value of $101 million. In February, Gabelli succeeded in convincing Tredegar Corporation (NYSE:TG) to give up on its poison pill. Taking advantage of the new opportunity, the legendary investor has added around 1 million shares to its original 11.7% stake, as the stock continued its decline. Year-to- date Tredegar Corporation (NYSE:TG) has lost more than 26% of its market value on worsening business prospects.

Tredegar Corporation (NYSE:TG) is a plastic films manufacturer that has a market capitalization of close to $700 million and its shares currently trade at $21.21.

In a second move announced today, Gabelli has significantly upped its stake in Medical Action Industries (NASDAQ:MDCI), suggesting it is getting involved in merger arbitrage. The investor has added 1 million shares to the previous stake of 252,164 shares, increasing its holding to 7.86%. In late June, Medical Action Industries (NASDAQ:MDCI) agreed to be acquired by Owens & Minor, Inc.(NYSE:OMI) for $208 million and now the deal is in pending state. The bid price for Medical Action Industries (NASDAQ:MDCI) represents a premium of around 90%. The company’s stock trades now at $13.78 and at this price the medical products manufacturer has a market capitalization of $227 million, which is $19 million above the bid offer.

Mario Gabelli’s GAMCO Investors has beaten the S&P 500 by around 2% a year since its inception in 1986. At the moment, his equity portfolio is worth $19 billion and is extremely diversified across sectors and stocks. Gabelli’s top stock picks for the second quarter are DIRECTV (NASDAQ:DTV), American Express Company (NYSE:AXP) and Viacom, Inc. (NASDAQ:VIA).

Disclosure: none

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 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!