Is it a Good Time to Dispose Your Preformed Line Products (PLPC) Shares?

Palm Valley Capital Management, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -1.83% was recorded by the fund for the third quarter of 2022, while its benchmarks, the S&P SmallCap 600 Index, by comparison, returned -5.20%, and -3.75% return for the Morningstar Small Cap Index over the same period. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Palm Valley Capital Management mentioned Preformed Line Products Company (NASDAQ:PLPC) and explained its insights for the company. Founded in 1947, Preformed Line Products Company (NASDAQ:PLPC) is a Cleveland, Ohio-based fiber optic cable manufacturing company with a $354.7 billion market capitalization. Preformed Line Products Company (NASDAQ:PLPC) delivered a 10.97% return since the beginning of the year, while its 12-month returns are up by 7.24%. The stock closed at $71.80 per share on October 12, 2022.

Here is what Palm Valley Capital Management has to say about Preformed Line Products Company (NASDAQ:PLPC) in its Q3 2022 investor letter:

“The Fund exited its stake in Preformed Line Products (NASDAQ:PLPC) during the third quarter after the shares exceeded our intrinsic value estimate. During the second quarter, PLP’s currency neutral sales jumped 27%, with a 41% gain in operating profit. The business is historically cyclical, and we believe we could be selling near peak operating performance.”

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Our calculations show that Preformed Line Products Company (NASDAQ:PLPC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Preformed Line Products Company (NASDAQ:PLPC) was in 7 hedge fund portfolios at the end of the second quarter of 2022, compared to 6 funds in the previous quarter. Preformed Line Products Company (NASDAQ:PLPC) delivered a 20.01% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Preformed Line Products Company (NASDAQ:PLPC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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Disclosure: None. This article is originally published at Insider Monkey.