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

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 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

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!