It means get rid of assets and people immediately , like what this hedge company did to Hostess
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It looks like ValueAct push themselves into business situations where they think an organization is either being mismanaged or where they see untapped potential (true in both cases for BHI). The decision to dismantle BHI was spawned in 2010 and the tactics employed since then reinforce that strategy, unless of course you include incompetence in the mix. ValueAct believe that BHI stock is undervalued, but don't explain why..The oilfield is competitive and existing players are all scrabbling for a piece of the action. Given that both BHI and HAL are losing their corporate memories (loss of many experienced individuals) any new organization is likely to be weaker than the sum of its ingredient parts, SLB is likely to capture more market share next year. What if Baker IS undervalued? What difference does it make? If the merge does go ahead the stock swap terms have already been set: One BHI share = ((HAL x 1.12) +$19)) It is the value of HAL that will determine the outcome in the end! At least it gives us something to talk about in the forum...!
Too little too late...unless Valueact knows something not being released!
This sounds like a storyline from a 1980's Melany Griffith film! If true the only thing it indicates to me is that ValueAct know absolutely nothing about the oilfield and the underlying fundamentals. As someone below indicated the PE rato for BHI is ~90 ...a figure associated with an emerging company with no competitors (blue ocean). But the oilfield is finite and facing suppressed pricing for at least another year. BHI dividends are also very small. With revenues likely to decrease again in Q3 it looks like the bubble could burst at any time.
Good time to let scores go before q3 call
really: it means upper management, middle management, & underperforming hands @ BHI better get their resumes updated.
Anyone who thinks BHI stock is undervalued is a nut. Last time I looked the P/E ratio was about 90 for heaven's sake.
What this means?
http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=79687&fid=10349052