Ride the Activists' Coattails
Activist investors have been, well, active so far in 2013 and have already given us a few priceless moments. The Icahn-Ackman debate will go down as one of the best bits in the history of business television. David Einhorn has gone after Apple (AAPL) and he appears to be winning so far. Activists have been buying up underperforming and cash-laden companies to force an increase of shareholder value. I haven't checked in on activist activity in a while, and given recent events, today is the perfect time to see where we might ride activist coattails for profit.
Nearest and dearest to my heart is Tuesday's activist filing in CommonWealth REIT (CWH). I have long maintained that these shares have been severely undervalued, and two activists have decided that the stock is cheap and the company badly mismanaged. The real estate investment trust announced an offering of notes and equity Monday, and Tuesday morning Related Fund Management and Corvex Management pounced on the company's management while announcing an almost 10% stake. The activists have said that if the board attempts to go forward with its equity and debt offerings, they will remove the board and replace them with new trustees....479 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.