connoisseur of the untold stories on wall street, skewed toward activism

Crown Castle Being Called Out By Icahn Protege

Added on by Gordon Gekko .

Crown Castle (NYSE:CCI) isn't a small-time player in the wireless tower business, with a $27bn market cap. It now has an activist looking to unlock shareholder value. Convex Management now has a 4% stake in Crown Castle,owning 3.6mm shares worth $1bn. Corvex founder, Keith Meister, has been dubbed the Carl Icahn protege. Meister is an activist investor and was the right hand man to Icahn before founding Corvex in 2011.

Corvex has done some work on CCI and put out a letter that said shares are worth over $100 a share. Corvex also wants the company to boost its dividend to $4 a share. Corvex has also said,

"Our analysis suggests a change in capital allocation could result in Crown Castle's stock trading for in excess of $100.00 per share within a short time frame, and compounding further from there."

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Marcato Going Acitivst At NCR

Added on by Gordon Gekko .

Marcato Capital now has a 6.5% stake in NCR Corp. (NCR) and is pushing for changes at the maker of ATMs and self-service checkout machines.

It's NCR's largest shareholder. It plans to add managing partner, Richard McGuire, to the company's board.

Marcato said in the SEC filing that it oud take immediate steps to get McGuire on the board. The firm also said that it may want to discuss with the company its options for enhancing shareholder value through various strategic alternatives. Shares are down 26% YTD. 

What's NCR do? "NCR Corporation (NCR) is a technology company, which provides products and services, which enable businesses to connect, interact and transact with their customers and enhance their customer relationships by addressing consumer demand for convenience, value and individual service."

Town Sports: Over 40% Owned By Activists

Added on by Gordon Gekko .

We’re not a fan of fitness clubs, as an investment anyway. But we are fans of activist campaigns. Town Sports (CLUB) is a $139mm market cap fitness center operator. A group of activists own nearly 40% of the company. Leading the pack is HG Vora Capital with 16%, then there’s Farallon with 16.7% and PW Partners with 6.8%.

The activists want HG to transfer cash from its subsidiaries and reduce costs. As well, it wants it to explore a like-kind exchange for its Manhattan property, with the major goal of selling the company.

What’s CLUB do? “It’s an owner and operator of fitness clubs in the Northeast and Mid-Atlantic regions of the United States and a fitness club owner and operator in the United States in each case based on the number of clubs. As of December 31, 2013, the Company, through its subsidiaries, operated 162 fitness clubs under its four regional brand names.”

Activist At SeaChange Says 'Show Me The Money'

Added on by Gordon Gekko .

via activistcorner @ stockpucker.com

SeaChange International (SEAC), the $226mm market cap video systems company, has Roumell Asset Management looking to shake up the company. Shares trade at just $7/share, but Roumell is in for over $9 a share. Roumell wants SEAC to buyback shares.

The buyback is expected to be upwards of $40mm, which is well covered by SEAC’s $100mm in cash and no debt. It doesn’t make sense for the company to carry all that cash, especially given the consistency of its cash flow stream. The recent campaign at Roumell is also out of the ordinary, as it is not an activist firm and this makes its second activist stake in over a decade and a half.

What does SEAC do? “SEAC is engaged in the delivery of multi-screen video. Its products and services facilitate the aggregation, licensing, management and distribution of video, television programming and advertising content.”

Why Activists Are Buying Up Paper

Added on by Gordon Gekko .

The companies in the paper and containerboard industry get little attention. Let's face it, the industry isn't all that sexy. But Richard Perry is looking to bring sexy back.

Perry has been doing some due diligence, in addition to paying PricewaterhouseCoopers a handsome fee for doing some research. The fund believes that paper companies can spin their containerboard mills into an MLP structure. PricewaterhouseCoopers found that those mills using 25% or less recycled fiber would be eligible.

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