Holy Cow, Jana Partners Does It Again...Barnes and Noble Soars
I was going to write a blog post about this the other day, but I never got around it...I just posted this on TMF's message boards instead:
And you thought that the spikes that we see from time to time in companies' share prices after they are recommended here at TMF were big, check this one out. Shares of Barnes & Noble soared 20% today on news that the activist investor that we follow, Jana Partners, has established a stake in the company. Specifically, Jana currently owns 7 million shares and has options to buy another 250,000 at $13 per share. The shares that it currently owns give it around a 12% stake in the company.
I'm personally not sure about an investment in Barnes & Noble, but I suppose that if the company could somehow cause enough changes to steer the company in the Amazon direction and away from the Border's direction the bet could work out. I certainly wouldn't doubt Jana after seeing what they did over at Marathon recently, whough I don't think that I would want to hop into BKS after a 20% pop either. Of course, that's what I said about El Paso when I saw it's price pop...and it continued to go up.
It's not like Jana is the lone voice here though. It will have a lot of competition from other huge shareholders if it wants to make changes that they don't approve of, including Chairman Leonard Riggio's 29.8% stake, Ron Burkle's Yucaipa's 19.8% and even John Malone's Liberty Media's option to convert its preferred shares in the company into a 16.6% stake.
Well that didn't take long, either Jana works fast or it knew that something serious was going on over at Barnes & Noble (BKS) because even after that massive initial spike, which not surprisingly scared me off BKS has soared over 50% today on news of a tie-up between Microsoft and its Nook unit.
Incredible! Whitney Tilson May Have Just Made The Best-Timed Trade That We Have Ever Heard Of
I should have taken my own advice :) ...I really need to follow Jana into a trade one of these days.