Daily Activist Investing May 30: Activism in fantasy sports

Activist amigos, fairly busy day today. More stories going up on the site in a big. In the meantime, activist-related stories and news for May 29 set up below - as usual the free newsletter is on a 24-hour delay; Activist Strategy subs are the only ones getting it on publication day. Tip us off at @activiststocks, daily newsletter sign up is here and check out past newsletters.

News-

  • Rosetta Stone, the Nierenberg Investment Management target, has received interest from private equity firm RDG Capital. Shares are up 15%. More thoughts to come later [link to news and link to 2011 profile of RDG Capital h/t @tobyshute]

  • Jet Capital sent a letter to SunCoke Energy. The fund owns 6.3% of the company. Key takeaway, It is clear that management has also been slow to accomplish incremental dropdowns to SXCP due to a disconnect between its views of the fair value of SXC’s coke assets and SXCP’s conflict committee’s desire to see dropdowns produce accretion to SXCP’s distributions [letter]

  • Mario Gabelli’s GAMCO is active at Park Electrochemical with a 5.1% stake - upping its stake by 60% from 1Q15.

  • JCP Investment sent a letter to Casella Waste. It owns 5.3% of the company and has been active since April. JCP notes that it has been contacted by multiple potential strategic acquirers expressing interest in Casella [letter and link to initial coverage]

  • Bob Evans, the Sandell Asset Management target, has hired a bank to monetize its real estate [story to follow]

Stories-

Activist investor Jason Ader of SpringOwl Asset Management was on CNBC this week. Of note, he said that fantasy sports could become the most popular way for Americans to gamble in the future. “The business has the potential to be as big as Macau over time.” Market leaders are DraftKings and FanDuel, but public company wise, it looks like it’s time to be long Disney and Yahoo! [link]