This column was originally published on RealMoney on Sept. 6 at 2:00 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.Often when activist shareholders get what they want, share prices immediately reflect it, which is why I like following these stories. The latest example comes from Computer Horizons' ( CHRZ) planned merger with Analysts International ( ANLY) -- a deal I
- A high price is being offered for Analysts.
- Analysts' business is deteriorating.
- If Computer Horizons stock is undervalued (as management has claimed), why isn't the company buying back its own shares? Seems like a less risky way to create shareholder value than overpaying for Analysts.
- The company has a history of missing guidance. Is the $15 million cost-cutting achievable?
- The company didn't look at all available options.
- Management and board own very little shares and bought very little in open-market transactions.
What's Next?The next critical event comes on Sept. 22, when shareholders vote on whether to keep the company's board intact or to remove the board and replace it with a slate proposed by Crescendo. If the Crescendo slate wins, expect the company (assuming Crescendo then takes control of the company) to hire an investment bank and either look to get bought at a much higher price or take on debt and repurchase shares. Also, Crescendo has noted that the company frequently missed guidance on revenue. I expect that there might be a one-time readjustment of revenue, and then I would look for the company to start surpassing guidance. Meanwhile, as TSC reporter Emma Trincal, has
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