Dr. Hugh Akston
Hedge fund manager, long/short equity, value

Strategic Review Should Unlock Sizeable Value For Cbeyond

On November 6th, Cbeyond (NASDAQ:CBEY) announced its Board of Directors had formed a Strategy Committee to explore strategic alternatives in order to "enhance stockholder value more quickly than by pursuing the Company's organic growth and transformation." We believe an honest analysis of the company's current position, from both a competitive and financial standpoint, should lead the Board to only one conclusion: a sale of the company is the only path forward.

Management has done a poor job allocating capital over the past several years which has resulted in the destruction of significant shareholder value. With the stock currently trading at an all-time low, we believe the only reasonable course for the Board is to conduct a full sale...

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