Post by
flamingogold on Sep 13, 2023 10:35am
Activist investors
Could an activist step in here at these firesale prices, take a 10% stake to get a seat on the board?
Have been in a few stocks where activist investors have stepped in when the share price was unjustly crushed and management was slow to act. SRV.UN has been a big winner for me after a power struggle ensued, now resolved and everyone happy.
Just recently Sime Armoyan of Armco Capital stepped into MRT.UN, another stock I own, to challenge Rai Sahi who has been slowly gobbling up shares while unjustly keeping the distribution low.
Comment by
Konaboy on Sep 13, 2023 10:50am
Armoyan ... three letters ... S O T
Comment by
flamingogold on Sep 13, 2023 11:12am
Selective criticism. Look at Carl Icahn, one of the richest men in the world but just lost on his bet against a market crash. Like Icahn, the Armoyans are billionaires with more big wins than losses and that's what counts.
Comment by
nedstar71 on Sep 13, 2023 11:00am
But other than taking a position at cheap prices, what would be the activist investor's 'activism'? IE what needs correcting here? Certainly not an increase in distributions.
Comment by
flamingogold on Sep 13, 2023 11:16am
Perhaps a way to lower the debt through an asset sale(s)? I believe they have the wiggle room to do so without a distribution cut.
Comment by
nedstar71 on Sep 13, 2023 12:05pm
Agreed. Management here are.pretty sharp though, I could see them doing that on their own.