Barnes & Noble Inc. (BKS), which primarily competes with Amazon.com, Inc. (AMZN), could face additional pressure from a new activist investor coming onto the scene.

Barnes & Noble Inc. (BKS), one of the largest booksellers in the United States, faces a number of competitive threats from a migration to the Internet for reading as well as larger online retailers like Amazon.com (AMZN). As a result, at least one activist investor is challenging the company to make key changes to enhance its business for the new century.

Since late last year, Ron Burkle has been aggressively buying up shares of the bookseller, which even led the company to adopting a poison pill to protect it from takeover. The activists latest move to double his stake to 37% of the troubled company would make him the largest shareholder, ahead of company insiders that own just over 30%.

In recent letters contained within 13D filings, Mr. Burkle characterized the company’s stock as undervalued and criticized the company for not letting him increase his stake without triggering anti-takeover provisions. Meanwhile, the company insists that it remains in a good positive, given the circumstances, and it has already made efforts to change.

While the activist investor hasn’t articulated his strategy to turn around the book seller, many investors are looking forward to the involvement brining some real change to a struggling company.

Macrovision Corp. (NDAQ:MVSN) shares moved up marginally after Blum Capital disclosed a 5 percent stake in the company last Friday, according to a Schedule 13D/A filing with the SEC. Shareholders are hoping that the activist hedge fund will work with management to unlock value in the company.

What is in the cards for the software company? Well, Macrovision's balance sheet is extremely solid with $413 million in cash with only $240 million in total debt. Often times, hedge funds will look to distribute this spare cash to shareholders via a share buyback or special dividend.

The problem is that Macrovision is showing negative year-over-year cash flow growth of -80 percent with an EBITDA margin of 18.4 percent. This has many speculating that Blum Capital will step in to reduce the company's capital spending and distribute the spare cash to shareholders via a share buyback or special dividend.

Whether or not the hedge fund will be successful in implementing this strategy remains to be seen; however, with a growing 5 percent stake in the company they may have enough say to make it happen. Combined, these factors make MVSN a stock worth watching!

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H&R Block (NYSE:HRB) shareholders are gearing up for this years September 6th board meeting where they will be faced with a decision whether or not to vote for incumbent board members or a new slate of three directors proposed by ex-SEC head Richard Breeden's hedge fund, Breeden Capital Partners. Shareholders are hoping that these new directors can implement a series of changes designed to jump the company's stagnant share price.

Richard Breeden, who owns a 1.8% stake in the company, has attracted widespread support for his proposal to narrow the company's focus to just tax preparation services by divesting everything else. The company's long history of failed diversification efforts has frustrated many investors and led to a stagnant share price that has many ready for change. Among other things, Breeden demanded that the company shut down its thrift division and focus on selling off its mortgage businesses while focusing on tax preparation services.

Unfortunately, the poor credit markets might prove to be a hurdle for any move to divest. H&R Block's current deal to sell its One Mortgage unit to Cerberus Capital Management was recently delayed until December 31st, which has many worried that the deal will fall through. Meanwhile, many other financial and strategic buyers are finding it very difficult to obtain financing. The company's business units may also prove to be too small for spin-offs onto the public market.

Shareholders and analysts seem unphased, however, after three proxy advisory services recently came out in support of his candidates while other activists holding a cumulative 15% of the outstanding shares are also expected to vote in favor of change. Whether or not Breeden is successful remains to be seen; however, this is definitely a stock to watch given his past success in activist situations!

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Unisys Corporation (NYSE:UIS) is set to move higher today after MMI Investments filed to boost its stake in the company above 10 percent but not more than 15 percent. The Hart Scott Rodino Antitrust Act required the activist hedge fund to seek permission before making its purchase, which gives investors a chance to jump on the opportunity.

Unisys is a worldwide technology services and solutions company whose consultants assist clients with general consulting, systems integration, outsourcing, infrastructure, and server technology. The company's stock is currently trading at $7.53 slightly off of its 52-week high earlier this year of $9.70.

A glance at the financials shows that the company is trading slightly below enterprise value with a P/E multiple of 17x - below the industry's 24x. It is also worth noting that the company has approximately $520 million - or $1.49 per share. This has led to speculation that MMI may be interested in unlocking value for shareholders through a special dividend or share repurchasing using the company's substantial amount of cash.

Unfortunately, the company faces negative quarterly growth, a paltry 1.78% ROA and a -19.83% ROI. These numbers point to a company that is struggling to operate cleanly and efficiently and that is also facing problems extracting revenues from its customers. As a result, MMI may have to work to help the company turn itself around before any value can be had from the company's pile of cash. However, this situation is definitely one worth watching!

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China Security and Surveillance Technology (OTC:CSCT) shares may soon get a much needed boost from Conrad Bringjourn's Clinton Group. The activist hedge fund sent a letter to the company commending management's execution to date but cautioning that its shares were substantially undervalued. Shareholders are hoping that the hedge fund can work with CSCT to unlock value for everyone.

China Security and Surveillance is trading below its value for several reasons. First, the company is traded over-the-counter which makes it much less liquid and thus less preferable for investors. Secondly, there is very little in terms of analyst coverage or investor relations, which makes it difficult for investors to find the company. Combined, these factors have led to a company that is trading at just 12.1x consensus 2008 EPS with a PEG of only 0.4x - making the stock extremely undervalued given management's execution!

The Clinton Group offered to help the company obtain a timely listing on the New York Stock Exchange (NYSE) that would help it enable it to offer investors greater liquidity while also attracting more attention. More, E-House China's recent IPO on the NYSE and subsequent dramatic rise is a clear indication of Wall Street's appetite for successful Chinese firms. Shareholders are hoping for similar results from this company after a listing.

The Clinton Group offered to support and advise the company in finding two independent directors as well as introducing the company to equity research analysts and prominent investment banks. If successful in generating additional interest and liquidity in the company, CSCT could see a substantial rise in share value. This makes the stock one worth watching!