lazard's 2018 activist review
Snap shot of the executive summary below. See this link for the full deck.
Activist J. Carlo Cannell has taken a 7.3% stake in Hudson global Inc.
Activist J. Carlo Cannell has taken a 7.3% stake in Hudson Global Inc. (NASDAQ: HSON) the provider of recruitment process outsourcing and managed services. The company seems to have an attractive value proposition, with a market cap of ~$45m, a cash balance of $39mm and no debt (see exhibit A below from HSON recent investor presentation).
13D Filing Purpose of transaction:
"Cannell Capital LLC, on behalf of the Investment Vehicles, identified the Company as an entity satisfying each of the Investment Vehicle's investment criteria. The Investment Vehicles acquired and continue to hold the Shares as a long-term investment.
CC reserves the right to discuss various views and opinions with respect to the Company and its business plans with the Company or the members of its senior management. The discussion of such views and opinions may extend from ordinary day-to-day business operations to matters such as nominees for representation on the Company’s board of directors, senior management decisions and extraordinary business transactions. Mr. Cannell reserves the right to take such action as he may deem necessary from time to time to seek to maximize the value of the Shares. Such actions may include, but may not necessarily be limited to, pursuit of strategic initiatives to enhance shareholder value.
CC may engage in any of the actions specified in Items 4(a) through 4(j) to the Schedule 13D general instructions.
Except as set forth above, CC has no present plans or proposals that relate to or would result in any of the transactions described in Item 4 of Schedule 13D."
Cannell's purchases were in the $1.43-$1.51 per share range.
The writer DOES at the timing of writing this post have a long position in HSON- the position was taken today after the 13D filing was made. Depending on further research and market conditions the writer may dispose of or acquire more shares in the HSON.
Exhibit A: From HSON Investor Presentation
Information provided here or in email alerts does not constitute investment advice nor an offer to sell securities. The information provided is for research purposely only and we do not take any responsibility for any loss or damage including and without limitation to any loss which may arise directly or indirectly from use of or reliance on such information. The writer of this article does at the time of writing have a long position in HSON, and may potentially purchase or dispose of shares pending further analysis and market conditions.