NEW YORK (TheStreet) -- TIBCO Software (TIBX) surged in after-hours trading on Wednesday after Praesidium Investment Management, which owns approximately 5.5 million TIBCO shares, sent a bullish letter to the company's board of directors.
Praesidium, which invests for the long-term on behalf of its clients and often suggests constructive ideas to management and boards of directors, said the following to TIBCO in the letter, according to TheFlyonTheWall:
"We believe that TIBCO has a unique collection of valuable assets and industry leading technology, with products in some of the fastest-growing areas of software, such as data discovery, analytics, and complex event processing. However, we also see a company that is currently falling far short of its significant potential, resulting in what we see as a material disconnect between the high strategic value of TIBCO's technology and the price of TIBCO's stock in the public market.
"We believe there is a substantial opportunity to unlock value at TIBCO and we look forward to a constructive dialogue with the Board on ways to achieve this. The Board should trust that as fiduciaries of our clients' capital we will do what is necessary to ensure that shareholder value is maximized at TIBCO."
The stock was up 5.21% to $21.81 at 4:25 p.m.
TheStreet Ratings team rates TIBCO SOFTWARE INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: