An Activist Hotel Turned Diaster
The $140 million market cap specialty metals and plastics company, A.M. Castle has its 5th activist in a relatively short period. Stone House capital is the latest in an activist swarming that started in 2012. The interesting thing about Stone House is that it's taking a bit of a different approach.
We've seen some corporate structure overhaul A.M. but is it enough? Commodity exposure is bearing down on the company and of note, "...our cost structure is simply too high and needs to be reduced. To do so, we need to streamline our operations and eliminate facilities that geographically overlap." With a cash crunch on hand, do they really have time?
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