NEW YORK (TheStreet) -- Shares of Monster Worldwide (MWW) were gaining 7.41% to $3.69 in mid-morning trading on Friday after MediaNews disclosed a 11.6% stake in the job site and voiced opposition to its proposed sale to Randstad (RANJY).
"As Monster's largest shareholder based on publicly available information, [MediaNews] believes the $3.40 per share deal would represent the textbook definition of 'selling at the bottom,'" newspaper publisher MediaNews said in a statement.
Less than a year ago, Monster was repurchasing stock at an average price of $6.03 a share, MediaNews added, noting that it believes Monster shares can rally to between $6 and $8 a share in the next 18 months.
The company urged Monster shareholders against tendering their shares. MediaNews hopes Monster will explore all strategic options, including an auction, review of business operations and a restructuring.
MediaNews also recommends that Monster cut expenses between $100 million and $150 million, monetizes non-core assets not valued in the current stock price and reduce capital expenditures.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Monster Worldwide's weaknesses include its unimpressive growth in net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: MWW
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.