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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

FrontFour Delivers Letter To Fisher Communications Stockholders

CAN YOU TRUST THE CEO AND CURRENT BOARD TO MAKE PROPER CAPITAL ALLOCATION DECISIONS?

In a recent investor presentation, the Company apparently agrees with our assertion that it lacks scale stating "While Fisher has less scale relative to its public pure-play TV broadcasting peers, management is executing upon a well developed strategy to build scale."   Given this statement, we have serious concerns that the Company is looking to continue to pursue an acquisition strategy.  The CEO and Board have proven to be poor capital allocators, and we do not want corporate assets to be wasted any further.

To set the record straight, Fisher stockholders should be seriously concerned with Fisher's poor track record on capital allocation, as evidenced by three notable acquisitions completed under the current CEO for a total of $91.6 million. Yet, despite these investments and during the same period, Fisher's stock declined by a stunning 48%, representing a total stockholder loss of $173 million. We believe that such underperformance is unacceptable and wish to ensure that such mistakes are not repeated.

In light of this, can stockholders trust Fisher's CEO and Board to make responsible and prudent investment decisions? In the event that the Company carries through with the sale of Fisher Plaza, can stockholders be sure that the resulting capital will be allocated properly and competently? It's all about trust. Fisher's CEO and Board need to earn it, and so far, stockholders have good reason to be skeptical.

THE COMPANY IS ONLY SHOWING YOU THE NUMBERS IT WANTS YOU TO SEE!  ALL THE HOMESPUN NUMBERS IN THE WORLD CAN'T HIDE THE COMPANY'S UNDERPERFORMANCE!

On conference calls investors have asked management to provide more data around the acquisitions so that investors can properly assess management's ability to make acquisitions. Management has refused to provide such data. In fact, in management's latest discussion of performance the Company highlights revenue and EBITDA growth, yet fails to separate out revenue relating to the acquisitions.  In a slide, the Company specifically highlights revenue growth from 2006 to 2010 of $18 million. So, the Company spent more than $90 million on acquisitions, yet has only grown its total revenues by $18 million?

Ms. Brown has stated on conference calls that margin improvement is a primary operational goal for the Company.  Why didn't we see any slides in the investor presentation or in the Company's letters about how margins have improved?  Clearly, they don't highlight margins because margins have not improved, even taking into account these costly acquisitions. How can stockholders trust the information Fisher tries to spin?

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs