TheStreet's founder and Action Alerts PLUS portfolio manager Jim Cramer awaits quarterly results from Arconic on Monday. "Arconic is a situation where we don't know who the CEO is going to be - I actually like that situation," Cramer said.
Activist investor Elliott Management's Paul Singer scored a major victory when the CEO of Arconic, Klaus Kleinfeld, resigned in April from the aerospace part company's board. The removal of Kleinfeld from Arconic was a core goal for a months-long private and later public Elliott Management campaign - the insurgent fund had argued that he was a key impediment to driving share price improvement.
The ouster also followed an unusual unauthorized letter Kleinfeld had sent to Singer. The board said that Kleinfeld had shown poor judgment with the letter, while Elliott Management said in a statement that the letter read as "a threat to intimidate or extort a senior official of Elliott Management based on completely false insinuations." Soon after that Kleinfeld was out. However, his ouster wasn't enough for Elliott Management, which later succeeded at installing three dissident directors to the company's board.
Singer's team is likely involved in the CEO search process, but the company's share price has been on a downward trajectory in the wake of London's Grenfell Tower fire, where at least 79 people were killed. Arconic, which supplied aluminum composite panels to a distributor for the refurbishment of the tower in 2015, said last month it was discontinuing sales of its Reynobond PE for use in high-rise applications.
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