JANA: Cameron should outperform oil service peers with more asset sales

Activist hedge fund firm JANA Partners says is investing in Cameron International (CAM) - it hasn't yet disclosed the size of its new stake - because it believes CAM's problems are "self-inflicted, temporary and remediable" after consistently missing earnings expectations last year despite record backlog and revenues.

CAM's sale earlier this week of its high-horsepower natural gas gathering and processing equipment business to GE was the company’s first step “to rationalize [its] portfolio," the hedge fund says.

Barry Rosenstein’s firm has pushed other oil and gas companies to make moves to increase shareholder value, most recently urging Oil States to spin off its oil field housing and accommodations business.

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Comments (1)
  • babydrill
    , contributor
    Comments (2) | Send Message
    What is lacking within cam is proper execution of the plans and activities. As a customer using cam new build and refurbished equipment compared to GE and NOV, cam does not meet basic standards and as a result, is costing the customers a lot of revenue. A lot of the cam management team are passed their sell by date including their CEO. It is really disappointing taken into account that cam has excellent products, well engineered but they can not deliver on time and fully functional equipment.
    26 Jan 2014, 09:05 AM Reply Like
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