E-Z-EM, Inc. (NDAQ:EZEM) board members and executives may find themselves in hot water soon after a large shareholder expressed dissatisfaction with current management's desire and ability to take steps to maximize shareholder value. Shareholders are hoping that these moves could help unlock value in shares that have remained somewhat stagnant recently.

Albert Investment Strategies, which owns 7.5 percent of the company, said in a Schedule 13D/A filing with the SEC that the company should (1) implement a quarterly dividend program, (2) conduct a share repurchase, (3) evaluate a sale or spin-off of the company's RSDL division and/or (4) evaluate a sale of the company. The activist hedge fund also pointed out several other key issues dealing with the company's management.
 
"AIA established its initial position in E-Z-EM because we felt the company's prospects were not being adequately valued by the markets," said the hedge fund manager Ira Albert. "We were attracted by your meaningful market share of barium  imaging  products, your new  product pipeline, the strong macro trends in the healthcare industry, and later by the energy of new members of your senior management team coupled with the opportunity for meaningful gross profit and operating margin improvements.

"It is our intention to continue to discuss our ideas with management and hope to expand our dialogue to include the Board as well. We may also speak to other shareholders and build a strong consensus of opinion in support of our value creating ideas."

In the end, this is great news for shareholders as it means that significant value could be unlocked over the long or short term. If the company pursues a sale, it could mean rapid share appreciation in the very short term. Combined, these factors make EZEM a stock worth watching!

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