Mohnish Pabrai is still bullish on HORSEHEAD HOLDING CORP. (NASDAQ:ZINC), which can be concluded from the latest filing by Dalal Street with the Securities and Exchange Commission. Dalal Street reported purchasing some 147,100 shares of the company. The fund spent a total of $2.1 million shares to increase its holding in the company to over 6.4 million shares.
As we have mentioned it earlier, Mr. Pabrai has been buying shares of Horshead for a while now. In its latest 13F, in which Dalal Street reported its equity portfolio as at the end of the third quarter, the fund disclosed holding just around 5.1 million shares of the company. At the same time, the fund has been long Horsehead for a couple of years, the earliest mentioning of the stake in the company appearing in the 13F filing for the third quarter of 2012, Dalal revealed ownership of some 1.8 million shares of the company.
The stock of Horsehead is trailing a forward P/E of over 18, and shows a year-to-date return of almost 40%. The company has an expected EPS increase of over 400% for the next year. In the third quarter, the company reduced its net loss to $3.5 million, or $0.08 per diluted share from $9.1 million in the same period of last year. The company is also conducting some projects to increase its productivity of zinc, building a facility in North Carolina, which is expected to begin its activity by the end of the year. This project is of a particular value for the company since its expected to deliver earnings between $90 and $110 million, amid costs of $490 million.
Chuck Royce’s hedge fund Royce & Associates, in its latest 13F filing disclosed holding around 4.1 million shares of the company, reducing the position by some 432,600 shares.