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

Activist Shorts Austerity, Goes Long M&A

Recently, Ubben and ValueAct upped ownership of their largest holding, Motorola Solutions, by buying shares directly from Carl Icahn, who followed the fund manager at Monday's summit with a starkly different message.

Occasionally, the conventional activist speaks up through Ubben: ValueAct's influence on the splits of Sara Lee and cost cuts at Valeant signal that the fund is willing to play the role of a traditional activist. "Could I see myself doing a proxy in a bigger company for one board seat? I could," said Ubben.

Nevertheless, for investors who may be tiring of corporate austerity, spinoff plans and the heavy stick wielded by some activists like Icahn and Daniel Loeb of Third Point, among others, Ubben's conviction that now is a good time for patient investment may be a compelling alternative.

Watch for an earnings turnaround at Adobe, Halliburton, and CBRE, and a cycle of M&A and spending at Valeant Pharmaceuticals and Motorola Solutions, to be early reads on whether 2012 is an opportune time for companies to invest, in the same vein that 2009 was a buying opportunity for investors like Ubben.

For more on the summit, see how bets on AOL and Barnes & Noble show a kinder and gentler activist is emerging. See Carl Icahn's first 2012 M&A win , for more on more aggressive activist investing. See why timing is key in biotech takeovers for more on M&A ideas.

-- Written by Antoine Gara in New York.

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
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!
SYM TRADE IT LAST %CHG
ADBE $76.54 0.00%
CBG $38.49 0.00%
VRX $210.42 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs