This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Fund That Cashed in on Nook Bets on Marathon Petroleum

On Monday, Jana Partners saw giant profits in one of its newer investments, when Barnes & Noble announced that Microsoft will take a near-20% stake in the spinoff of its Nook digital books and tablets business, in a deal that values the unit at $1.7 billion. Jana recently unveiled a 12% stake in the struggling bookseller, which DiDomenico said the company first built in January.

"Barnes & Noble was not an activist investment," said DiDomenico, who noted that in the firm's analysis, they felt the bookseller's languishing shares in effect gave them an interest in its attractive Nook eReader business for free. "We believe we are in the early innings of an eReader revolution," said DiDomenico. In January, Barnes & Noble said it was exploring a spinoff of the Nook business from its traditional brick and mortar bookselling business after cutting it's 2012 earnings outlook. In Monday's partnership, Microsoft will run Nook on its soon-to-be released Windows 8 operating system and will settle patent related lawsuits.

While Jana Partners had not disclosed support for a spinoff or a full sale of Barnes & Noble in making its investment, DiDomenico said, "the Microsoft investment will fortify the Nook business and position it for success," after the company solidified its position as the second leading eBook business to Amazon's Kindle.

The firm's Barnes & Noble success highlights that Jana Partner is not solely focused on activist investments, targeting just 33% of its portfolio toward change-based causes, noted DiDomenico. Even in those pushes, he said that the firm still needs to see a value in share prices and an investing premise that works even if a change campaign fails. "We don't want to enter any situation where there is only one way out," he said.

In the Marathon Petroleum push, DiDomenico said that Jana Partners is close to realizing added share value after a $10 share gain on the heels of the company's decision to buyback $2 billion in shares and consider an IPO of its midstream businesses in an MLP.

-- Written by Antoine Gara from New York.

2 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
BKS $23.75 0.00%
MPC $102.39 0.00%
AAPL $124.43 0.00%
FB $82.22 0.00%
GOOG $548.00 0.00%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

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