Yahoo! Inc. (YHOO), McGraw Hill Financial Inc (MHFI): Passport Doesn’t Pass Up an Opportunity

Meanwhile, Passport was also upping its stake, by 67%, in Westlake Chemical Corporation (NYSE:WLK), which now makes up 2.4% of the fund’s 13F. Westlake is an integrated manufacturer of petrochemicals, polymers, and fabricated vinyl products. Sales are expected to be up 1% in 2013 and then 8% in 2014. The increase is expected to come on the back of increased demand for vinyl and resins as construction activity rises.

Westlake Chemical Corporation (NYSE:WLK) managed to post 1Q EPS of $1.84, compared to $1.31 during the same quarter last year, and this despite a 16% sales drop. The company has been managing expenses nicely and now analysts expect robust EPS growth over the next few years. 2012 EPS came in at $5.82, consensus shows expected 2013 EPS of $6.34 and 2014 of $6.98.

Bottom line

It appears Passport has made some new bets on turnaround and struggling companies. The fund has McGraw Hill Financial Inc (NYSE:MHFI), which is transitioning itself with various initiatives, as one of its top holdings; however, I am hesitant about the company based on valuation and DOJ overhang. Yahoo! Inc. (NASDAQ:YHOO) is an interesting stock that looks to have Alibaba IPO tailwinds that can lift the stock higher. I remain cautious on Yelp Inc (NYSE:YELP), but think Westlake’s end-markets will show increasing demand and now could be a good time to buy the chemical company.

The article Passport Doesn’t Pass Up an Opportunity originally appeared on Fool.com and is written by Marshall Hargrave.

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