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

The Five Dumbest Things on Wall Street This Week: Jan. 25

3. SandRidge's Campaign Foe

There was a call for "change" this week, our fellow Americans. And it did not come from President Obama on Monday during his inaugural address.

For that matter, nor did it come from Beyonce, who it turns out wasn't saying a damn thing during her pre-recorded rendition of the Star Spangled Banner.

No, while the president was on Capitol Hill trying to unify the country (or at the very least smile politely for snapshots with John Boehner), another, even larger political battle was brewing away from Washington D.C.

You guessed it: We're talking about asset manager TPG-Axon and its campaign to oust SandRidge Energy's (SD - Get Report) entire board of directors. And judging by the letter that TPG-Axon, which owns 6.7% of the driller, addressed to SandRidge shareholders on Wednesday, this conflict is going to get really, really messy.

(OK. Begin lip-synching The Battle Hymn of the Republic ...) "It is time for change -- the company must dramatically streamline, simplify and focus in order to build value for shareholders. However, that change must begin at the top -- please join us in replacing the current directors with directors who will serve stockholder interests," TPG-Axon said.

The investment firm then published a list of grievances so long it put the Declaration of Independence to shame. Although in this case, the target was not King George III, but SandRidge CEO Tom Ward, who they characterize -- not wrongly -- as even more autocratic and self-enriching than the British monarch.

"Tom Ward has reduced his percentage ownership by 75% since 2008, and has sold shares in each of the past five years, selling a total of approximately 20.6 million shares over such time period ... even as his compensation increased 70% to $25 million (between 2007 and 2011) -- a level vastly higher than peers," TPG-Axon charged.

TPG-Axon also pointed out that SandRidge's stock has declined almost 80% from its IPO in 2007 and is the single-worst-performing energy stock in the Russell 1000 Index over that period. But the authors saved their most vitriolic attacks for Ward's outsized perks and pay package, ranging from his private jets to his part-ownership of the NBA's Oklahoma City Thunder.

"SandRidge Energy has enriched management, but shareholders have suffered," TPG-Axon bellowed to potential voters.

For the love of Lincoln. Forget about "malice towards none and charity for all." These guys are out for blood and a whole lot of money.

Lucky for us, that usually leads to a whole lot of stupidity.

3 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
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!
SYM TRADE IT LAST %CHG
STSI $0.21 3.14%
AAPL $124.43 0.00%
CAT $80.03 0.00%
MSFT $40.66 0.00%
SD $1.78 0.00%

Markets

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