Billionaire Einhorn Goes Activist on Sunedison Inc. (SUNE), Lands Board Seat, Plus 3 Other Investor Moves

As disclosed by a Schedule 13G filing, Alexander Medina Seaver’s Stadium Capital Management LLC currently owns 6.97 million shares of Builders FirstSource Inc. (NASDAQ:BLDR), which represent 6.4% of the company’s shares. This denotes an increase of 3.37 million shares from the position revealed through the fund’s quarterly 13F for the third quarter. The supplier of building materials, manufactured components and construction services has seen its shares gain 34% over the last year despite losing 39% over the past six-month period. Builders FirstSource Inc. (NASDAQ:BLDR)’s business and financial performance are highly dependent on both the residential construction market and the residential repair and remodel market. Although the recovery of the housing industry got under way in 2011, single-family housing starts still remain below the historical average of 1.0 million per year. Hence, the toughening competition within the homebuilding industry and the low level of housing starts are anticipated to keep weighing on the company’s margins. Nonetheless, the stock trades at a forward P/E multiple of 8.37, which is well below the average of 15.48 for the S&P 500 benchmark. The number of hedge funds with positions in the company climbed to 39 from 25 during the third quarter, so the smart money does see bright prospects for the company. Ed Bosek’s Beaconlight Capital acquired a 1.0 million-share stake in Builders FirstSource Inc. (NASDAQ:BLDR) during the third quarter.

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