HCC President, Brother Buy More of Firm’s Stock

The president of HCC Industries, Andrew Goldfarb, and his brother Steven increased their stakes in the company to 9.15% and 8.81%, respectively. Encino-based HCC makes hermetic, or airtight, seals used to protect electronic components.

In a telephone interview, Andrew Goldfarb said he bought 140,000 shares of HCC on May 24 from Wellington Management/Thorndike Doran Paine & Lewis, a Boston-based money management firm.

Goldfarb paid about $2.56 a share, or $358,750, for the stock, and he used personal funds and a $300,000 home-equity loan to make the purchase, according to his filing with the Securities and Exchange Commission.

He then resold 63,000 shares for the same price to his brother and 14,000 shares to HCC’s chief financial officer, Chris Bateman. Andrew Goldfarb kept the remaining 63,000 shares, lifting his overall stake to 152,674 shares. Steven Goldfarb now owns a total of 147,093 HCC shares.

HCC has struggled lately. The company lost $1.1 million in the nine months ended Dec. 27, and HCC said last month that a major restructuring of a subsidiary would result in a pretax charge of between $5.5 million and $6 million for the company’s fiscal year that ended April 2.

Andrew Goldfarb said his additional purchase of HCC stock reflects his belief that HCC’s prospects are improving. “I didn’t go out and borrow money and use my own money because I think things are going to be terrible,” he said.