Top activist investors typically look for companies that can unlock significant shareholder value through a specific corporate event, such as a sale, liquidation or recapitalization.

Activists scour the investment landscape for companies that are not controlled, i.e., firms in which senior executives and directors have a relatively small percentage of the overall shareholder vote. This allows aggressive outside investors to pressure corporate incumbents to take the actions required to bring about positive change. If insiders refuse to maximize shareholder value, skilled activists may be able to remove them through a proxy contest or an outright acquisition of the company via an unsolicited tender offer.

F1Q09 Earnings Call Transcript

April 27, 2009 at 4:30 pm ET

Yesterday there were a couple of posts about how tech stocks are currently especially attractive because they hold plenty of cash and tend to have little debt. Paul Kedrosky initially caught my eye with his post "Tech Cash is King" which in turn pointed me to a story on Bloomberg by Eric Martin.

I ran a screen last night that looked at both cash and debt. Specifically, I screened for a Price-to-Cash ratio under three, a Debt-to-Equity ratio under three and a Market Cap greater than $2.5 million. Based on these criteria, I obtained a list of 136 stocks.

Q4 2008 Earnings Call Transcript

February 12, 2009 4:30 pm ET

Q3 2008 Earnings Call Transcript

October 30, 2008, 4:30 pm ET

Q2 2008 Earnings Call

July 24, 2008 4:30 pm ET

Q1 2008 Earnings Call

April 28, 2008 4:30 pm ET

SonoSite Inc (SONO)

Q3 2007 Earnings Call

The Sound of Trouble by Neil A. Martin

Summary: SonoSite (SONO), which makes hand-carried ultrasound machines, is starting to feel the pinch of GE Healthcare's new compact LOGIQe, which competes directly with SonoSite's flagship product MicroMaxx. GE ultrasound sales ($264 million in 2007) have now overtaken SonoSite's, making it the industry leader. Its projected $300 million in 2008 would give it 58% of the global $510 million/year market. In May, GE sued SonoSite, saying MicroMaxx and another product infringe on five of its patents. If successful, the lawsuit "could be crippling" to SonoSite's sparse product line, says Oppenheimer analyst MD Sean D. Lavin. (SonoSite denies wrongdoing, and is countersuing GE for violating its patents.) Other problem areas include high sales expenses, negative operating margins, dwindling sales (18% 2007e growth vs. a historical 50%), and what some view as a lack of R&D spending. Shares ($36), down 7% over the past year, could hit $30.

Washington CEO magazine Monday has an article about three Seattle-area firms that have landed their products on Grey’s Anatomy and ER through barter deals with television networks. Philips Medical Systems, Cardiac Science (CSCX) and SonoSite (SONO) have seen their devices appear on one or both shows and have paid nothing for the honor.