Authentidate Holding Corporation
(NDAQ:ADAT) shares rose $0.04, or 2.68%, to $1.46 today after Coghill
Capital disclosed a 9.9% stake and made several recommendations to the
company's board of directors. The Chicago-based investment firm is
seeking to restructure the board of directors while also working to
improve the company's capital structure.
Authentidate, which
provides secure enterprise workflow management solutions, is trading
well off its 52-week high of $2.61 but appears to be working to turn
itself around. The company recently sold off its Document Management
and Systems Integration businesses in order to focus more on their core
competencies. Meanwhile, the company reported broad success with its
new initiatives in domestic healthcare and foreign partnerships.
Coghill
Capital Management is an activist investment company that employs a
bottom-up fundamental analysis approach to identify companies in the
highly inefficient small cap universe. They target small cap companies
with specific, time-bound catalysts for stock price movement. The firm
has a strong track record in this area and is a great fund to follow -
especially in strong positions like these.
Authentidate's new
business initiatives combined with a potential change in capital
structure makes it a stock with great potential. The involvement of
Coghill only solidifies the potential as they will likely provide the
company with the advice and financing that they need to succeed.
Combined, these factors make ADAT a stock
worth watching!
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