This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Five Dumbest Things on Wall Street: Nov. 28

Epicor Lacks 'Cruise' Control

The geniuses at Epicor Software (EPIC) pulled a Jerry Yang when they should have pulled a Jerry Maguire.

Hedge fund Elliott Associates abandoned its hostile takeover bid for Epicor last Friday, causing shares of the business software maker to sink to a five-year low of $3. The money manager, which owns 12.5% of the company, withdrew its $7.50 a share offer after Epicor's board rejected its overtures, backing management instead.

Quite simply, rather than yelling "Show me the money!" like Tom Cruise's character in the movie, Epicor's braintrust showed shareholders their ineptitude.

Epicor's refusal to sell the company is just unfathomable considering the pummeling of Yahoo! (YHOO - Get Report) when it spurned Microsoft's (MSFT - Get Report) $33 bid. Last we checked, Yahoo! shares were trading below $10 and now "temporary" CEO Jerry Yang is begging Microsoft to reconsider.

In a letter to the company's board, Elliott said it was "astounded and disappointed" by Epicor's recommendation that stockholders reject its offer. The fund also alleged that several other potential buyers expressed interest in purchasing Epicor only to be rebuffed by the board.

Epicor's board maintains its business plan provides more value to stockholders than selling the company.

That brings to mind another Tom Cruise blockbuster: Mission Impossible.

Dumb-o-meter score: 65 -- Epicor did not make "all the right moves." In fact, they engaged in "risky business." (OK, we'll stop with the Tom Cruise references now).

Before joining TheStreet.com, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.
5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
C $53.35 -1.51%
F $15.53 -1.58%
GM $35.01 -1.10%
NYT $13.60 -2.93%
MSFT $47.60 -1.33%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs