Activism is Dead, Long Live the Activist! - Real Time Insight
10 Februar 2014 - 8:07PM
Zacks
The activist investor is one that has
received a whole lot of press lately. We used to call them
corporate raiders, but let's leave the football team from Oakland
out of the discussion for now.
Activists - or investors that are
looking to take an active role on the board of directors - try to
unlock value that they believe is being hidden by the
company.
One of the recent activists is Dan
Loeb and his hedge fund Third Point, which famously took on the
board of directors at Yahoo!. He was able to remove the chairmen of
the board and several other directors while helping to secure a
headline grabbing CEO in Marissa Mayer.
Bill Ackman is another example of
an investor who helps make changes at the company he invests in.
Canadian Pacific Railway is one of his bigger wins, but Herbalife
(HLF) is certainly the play that Ackman will be associated with
going forward.
Fail
Whale
Despite all these triumphs for the
investing community, we have several failures out there as well. I
know it seems like I am picking on Carl Icahn, but let's face it,
he could care less what I write.
Carl has seen numerous tech
related activists roles end up in failure. He went after Yahoo!
long before Loeb did so and enacted change. Icahn made a play for
Dell before he eventually withdrew and Dell went private. And now
we have the failed bid to get Apple to increase its buyback to
$145B --- settling for the idea of coming close to a $50B
buyback
It should be noted that AAPL is up
about $10 per share today, as Icahn has backed off, and up about
3.2% over the last three trading sessions.
Hit or
Miss
Knowing this, are you more or less
likely to invest in a stock that is seeing activist
involvement?
Chime in below and let us know what you think!
APPLE INC (AAPL): Free Stock Analysis Report
HERBALIFE LTD (HLF): Free Stock Analysis Report
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