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Mangrove Partners’ Return, AUM, and Holdings (Part II)

Nina Zdinjak

Read the beginning of this article here.

The most valuable stake Mangrove Partners held in its equity portfolio at the end of Q2 2019, was in an oil and gas producer, PDC Energy, Inc. (NASDAQ: PDCE). The fund reported holding 2.02 million company’s shares, with a value of $72.92 million, amassing 8.24% of its 13F portfolio. The company has a market cap of $2.03 billion while trading at a P/E ratio of 17.01. Over the last six months, PDC Energy’s stock price dropped 18.81%, having a closing price on August 20th of $31.85 per share. In its last financial report for the second quarter of 2019, the company reported total revenues of $390.66 million and diluted earnings per share of $1.04, compared to revenues of $212.53 million and diluted loss per share of $2.43 in the same quarter of 2018. On August 30th, Barclays initiated coverage and placed an ‘Overweight’ rating on the stock, with a price target of $42.00, while three days earlier Mitsubishi UFJ Financial Group raised its price target to $66.00 with a same rating on the stock.

Mangrove Partners held the second-largest position at the end of June in EchoStar Corporation (NASDAQ: SATS), worth $68.03 million on the basis of 1.53 million shares outstanding. This position accounted for 7.69% of its 13F portfolio. EchoStar is a company that provides satellite communication and Internet services via its Hughes Network Systems and EchoStar Satellite Services business operations. Year-to-date, the company’s stock gained 14.5% and on August 30th it closed the market session with the price of $42.25 per share. EchoStar Corporation has $3.99 billion market cap, and for the second quarter of 2019 it reported revenue of $537 million, and adjusted EBITDA of $199 million, versus revenue of $526 million and adjusted EBITDA of $211 million in Q2 2018.

The third-largest stake Mangrove Partners reported in Penn Virginia Corporation (NASDAQ: PVAC), a $430.56 million market cap oil and gas company. The fund held 1.73 million company’s shares, valued at $53.06 million. This position amassed 5.99% of the fund’s equity portfolio. Over the last 12 months, the Penn Virginia’s stock lost 61.69%, closing Friday’ session at $28.50 per share.

Out of 29 new additions to Mangrove Partners’ second-quarter portfolio, the biggest new stake was initiated in  NII Holdings, Inc. (NASDAQ: NIHD). The fund purchased 6.78 million NII Holdings’ shares, with a value of $11.45 million, acquiring in that manner a position that accounted for 1.29% of its portfolio. NII Holdings  provides wireless communication services through its subsidiary Nextel Telecomunicações Ltda. It has a market cap of $162.68 million, and since the beginning of the year, its stock price dropped 60.75%, having a closing price on August 20th of $1.66. For the second quarter, the company disclosed a $5 million loss from continuing operations, and adjusted operating income of $12 million generated by Nextel Brazil.

The fund also found GrafTech International Ltd. (NYSE: EAF) to be an attractive investment, hence it bought 963,167 of its shares, which carried a value of $11.08 million in the second quarter. This position accounted for 1.25% of the fund’s portfolio. GrafTech International produces graphite electrodes and petroleum coke, which are used in the production of electric arc furnace and other metals. The company has a market cap of $3.48 billion while trading at a P/E ratio of 4.32. Over the past six months, its stock price dropped 14.33%, and on August 30th, it closed with $12.19 per share. In its last financial report for Q2 2019, the company disclosed net income of $196 million, or $0.68 per share, compared to net income of $201 million, or $0.67 per share for Q2 2018.

The third biggest new stake Mangrove Partners initiated during Q2 2019, was in Churchill Capital Corp II (NYSE: CCX). The fund acquired a position in the company worth $8.63 million, on the account of 850,000 shares outstanding.

Disclosure: None

This article was originally published at Insider Monkey.