Lemelson Capital Management Announces Stake In Geospace Technologies
Lemelson Capital Management announced on Monday it has acquired a 2 percent stake in Geospace Technologies Corp (NASDAQ: GEOS).
Lemelson Capital Management made headlines recently when BarclayHedge, a global leader in fund performance ranking assessment, ranked Lemelson Capital's Amvona Fund as the world's top performing "long bias fund" for August 2014. Throughout the past two years, the Amvona Fund has received recognition from Barron's as the top-performing hedge fund in the world.
Emmanuel Lemelson, manager of the Amvona Fund and frequent guest on Benzinga's #PreMarket Prep revealed in an email on Monday that Geospace Technologies has been added to the firm's flagship Amvona fund as shares are drastically undervalued.
"Shares of Geospace Technologies have continued to be dramatically undervalued, trading slightly above tangible book value recently, which the company has managed to grow at an impressive pace of nearly 23 percent per year over the last five years," Emmanuel Lemelson wrote in his email. Shares of Geospace Technologies closed at $28.01 on Friday, substantially less than the $78 fair value Emmanual believes shares are worth.
Geospace Technologies is a leader in engineering and manufacturing in the oil and gas sectors.
Following the purchase, Lemelson Capital owns approximately 2 percent of all outstanding shares of Geospace Technologies.
The stock was up 2.7 percent at $30.06 Tuesday morning.
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