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Daily Activist Investing May 23: Twitter's Unlikely Activist

Activist disciples - looks like Stella getting her groove back. Activist stories and news for May 22 set up below - note that the free newsletter is on a 24-hour delay; Activist Strategy subs only ones getting it the day of. Still taking leads at @activiststocks and daily newsletter sign up is still here. Another quick programming note, we're sent out our quarterly activist newsletter to subs yesterday - we aren't doing a la carte just yet, but can get you the sign up details for that newsletter if interested, just email us.

News-

  • Sarissa Capital ups its Aegerion Pharma stake by 23% and now owns 7.07% of the $575mm market cap biopharma. Recall Sarissa went active in January. Sarissa, headed by Carl Icahn alumni Alex Denner, thinks the company is undervalued and has been in talks with management. Shares are down 12% since Sarissa went active.   

  • Tenzing Global boosts its active stake in Care.com by nearly 20% to 2.2M shares - now owning 6.9%. Tenzing went active back in March and hasn’t laid out any plans.

  • Mangrove Partners got a nominee on the Atlantic Power board. The fund went active in April with a 9mm share stake - owning 7.5% of the company. Recall that The Clinton Group was an activist here last year [Mangrove thesis]

  • Marathon Partners put together a 53-page presentation taking Shutterfly to task. Marathon is waging a proxy battle here. Here’s the presentation, as well as the letter sent to the board the other day.

  • Eriksen Capital is waging a proxy battle [info] at Solitron Devices, nominating two members for the board. There’s a history here. In a letter back in January, Eriksen took Solitron to task for not holding a shareholder meeting in over a decade, as well as its consistent accounting errors.

  • Jana Partners gets a win, with Qualcomm announces plans for a $5bn accelerated buyback. This comes after they raised $10bn in debt earlier this year. Jana wants a $15bn buyback done within six months. The market is still under-appreciating Jana’s power, as well as the buyback power, with the stock off 6% YTD.

  • Emerson might be catching a bid from an activist investor per call activity speculation - the natural player being Nelson Peltz - who has experience in the industrial space and is likely hungry for a win after a beatdown by Ellen Kullman at DuPont.

Stories-

@sacca isn’t the activist many saw coming; although not an official activist, he’s being hailed for his blog post about Twitter entitled, I Bleed Aqua. Sacca was an early investor in Twitter, runs a VC firm, and takes Twitter to task in his post. Key takeaway, “I write all this because I am soon going to post a few things that I personally hope the Twitter team will accomplish...I believe there is no natural ceiling on the revenue Twitter can generate” [link to Sacca’s post]