Value Holdings Likes These 5 Industrials Stocks

#3. Rollins Inc. (NYSE:ROL)

 – Shares Owned by Value Holdings L.P. (as of June 30): 349,685

 – Value of Value Holdings L.P.’s Holding (as of June 30): $10.24 Million

The hedge fund vehicle founded by Timothy Curro left its position in Rollins Inc. (NYSE:ROL) unchanged during the June quarter at 349,685 shares. The untouched position was valued at $10.24 million on June 30 and constituted 6.6% of the value of the hedge fund’s equity portfolio. The provider of essential pest control services and protection against termite damage, rodents, and insects, which owns famous pest control company Orkin, has seen its market value increase by 6% in 2016. Rollins has improved its bottom- and top-line figures for 41 consecutive quarters, a rather remarkable achievement given the recent economic uncertainty around the world. The company’s revenue for the second quarter grew by 4.8% year-over-year to $411.1 million. The depreciation of the Canadian and Australian dollars against the greenback hit the company’s second quarter top-line by approximately $9 million. Net income increased to $47.8 million from $45.1 million recorded a year earlier. Jim Simons’ Renaissance Technologies LLC owned 1.28 million shares of Rollins Inc. (NYSE:ROL) on March 31.

#2. Westinghouse Air Brake Technologies Corp (NYSE:WAB)

 – Shares Owned by Value Holdings L.P. (as of June 30): 149,600

 – Value of Value Holdings L.P.’s Holding (as of June 30): $10.51 Million

The small-cap-focused hedge fund firm owned 149,600 shares of Westinghouse Air Brake Technologies Corp (NYSE:WAB) at the end of June, exactly 7,000 shares less than it did at the end of March. The reduced stake was worth $10.51 million on June 30. In late-July of last year, Wabtec (as the company is colloquially known), one of the largest providers of products and services for the global rail industry, announced plans to acquire French rival Faiveley Transport S.A. to create an even larger public rail equipment company. Wabtec recently offered concessions to alleviate EU antitrust concerns about the $1.8 billion proposed offer to acquire Faiveley. The European Commission, which is anticipated to rule on the deal by the end of October, is likely to seek feedback from third parties before deciding on whether to accept the concessions, demand more concessions, or even block the acquisition. Wabtec shares are down by a little less than 1% since the start of 2016. Adam Usdan’s Trellus Management Company acquired a new stake of 7,759 shares of Westinghouse Air Brake Technologies Corp (NYSE:WAB) during the second quarter.

#1. MKS Instruments Inc. (NASDAQ:MKSI)

 – Shares Owned by Value Holdings L.P. (as of June 30): 265,921

 – Value of Value Holdings L.P.’s Holding (as of June 30): $11.45 Million

MKS Instruments Inc. (NASDAQ:MKSI) was the third-largest equity position in Value Holdings’ equity portfolio at the end of the June quarter, accounting for 7.4% of its value, and its top Industrials pick. The shares of the provider of instruments, subsystems and process solutions for manufacturing processes are 27% in the green so far this year. In late-April, MKS Instruments completed the acquisition of Newport Corporation, a supplier of advanced-technology products and systems to various end-markets. Newport shareholders received $23.00 in cash for each share of Newport. The acquirer paid an aggregate consideration of $905 million, as well as repaid roughly $93 million of Newport’s indebtedness. MKS Instruments funded the acquisition with cash on hand of approximately $240 million and a $780 million-secured term loan. Ken Fisher’s Fisher Asset Management owns 699,271 shares of MKS Instruments Inc. (NASDAQ:MKSI) as of the end of the second quarter.

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