Live Nation Entertainment ( LYV) is involved in the promotion of live concerts, operates concert venues and sells tickets. Live Nation has lost money in 13 of the last 23 quarters and is expected to do so in the current quarter. The company seems to fare well only in fair-weather months. Has it heard about indoor arenas? This is a very tough business, which is increasingly finding that live entertainment is more costly to operate, too expensive for consumers and has to contend with competition from modern digital technology and a operate in a less than robust economy. Consumers with the most purchasing power tend to be the baby boomers who seek out concerts to hear their favorite singers or bands from their youth but unfortunately those opportunities are diminishing over time. They would rather stay home and watch a concert on their 60 inch flat panel TV. One big bet on Live Nation comes from Chase Coleman's Tiger Global Management, which increased its position in the stock by 31% to 15.7 million shares in the third quarter. Cadence PharmaceuticalsCadence Pharmaceuticals ( CADX) develops and markets an intravenous form of acetaminophen or APAP. Over the years, many companies have come and gone with the promise of developing and selling the next great painkiller. A hot stock several years ago was Penwest Pharmaceuticals, which never delivered to shareholders and wound up being purchased by Endo Pharmaceuticals ( ENDP). Cadence has virtually no revenue and has lost money for years. I do not see how this company will succeed where others have not. About the only positive is that Cadence has some cash on its balance sheet, but I am not certain that will last long as cash burn is very high. In fact, just last month, Cadence had to sell more stock in order to raise cash.
As insurgencies proliferate, investors and targets are fishing in the same small pool of candidates. Experienced executives are the ideal recruits -- and companies may have an advantage over activists.