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

Loeb Says Goodbye To Sony, Hello Amgen And 70% Upside

Added on by Gordon Gekko .

Per Dan Loeb and his Third Point hedge fund's 3Q letter, he closed out his Sony (SNE) position, which was disheartening for us (SNE is undervalued, but the company is stubborn and needs a catalyst), but Loeb is taking on a new company, Amgen (AMGN)

Shares are already up 29% YTD, but Loeb believes the fair value is $249 -- which is 70% higher than where it currently trades. Loeb pitched AMGN at the Robin Hood conference and owns 450,000 shares (or less than 1%). 

In his letter, Loeb calls AMGN a hidden value play. He commends AMGN's new products and the under appreciation of them. Loeb also calls for AMGN to split into two companies.  

What's AMGN do? "Amgen Inc. is a global biotechnology pioneer that discovers, develops, manufactures and delivers human therapeutics. Its medicines help millions of patients in the fight against cancer, kidney disease, rheumatoid arthritis (RA), bone disease, and other serious illnesses."

Hey Agrium, Is ValueAct Better Than Jana Partners?

Added on by Gordon Gekko .

Agrium (AGU) managed to fight off Jana Partners in 2012 and 2013. At the time, Jana wanted, 

Jana feels that Agrium is failing to properly manage working capital in the retail segment, which has in excess of $700 million in working capital. Agrium tried to ward Jana off with a dividend and Dutch auction tender, but Rosenstein believes there is more value within the company. Rosenstein has stated that he believes, with the necessary steps, the company could generate an additional $50 per share of value, which would be a 50% upside from the current share price. 

Shares are below the $100/share it traded at when Jana owned them and are up just 1% YTD. But that hasn't stopped ValueAct Capital (whom also has a campaign at 21st Century Fox) from taking a 5.7% stake in AGU. It'll be interesting to se what ValueAct pushes for. 

What's AGU do? "Agrium Inc. (Agrium) is a global producer and marketer of nutrients for agricultural and industrial markets. 

Merriman Capital Is Not Happy With Procera

Added on by Gordon Gekko .

Merriman Capital sent a letter to Procera (PKT), noting the company's underperformance. PKT is down over 50% YTD. Merriman notes,

"Procera operates in a rapidly growing market sector of significant potential, but the company continues to fail to execute on its strategies, and seems to be unable to seize upon market opportunities" He wants the company to hire an i-bank to help evaluate its options, and claims to have "spoken to several shareholders and investment bankers."

Here's the full letter

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."


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."