Unisys Corporation (NYSE:UIS) shares fell sharply today after a large investor urged the company to immediately hire an investment banker and review all available strategic alternatives. The news comes after shares in the technology company hit a new 52-week low as Wall Street continues to push the company down despite several new contracts. Shareholders are hoping that this will change, however, with the involvement of activist hedge funds.

MMI Investments, which owns 9.9% of the company, sent a letter to the board arguing that its restructuring benefits were not enough to correct Unisys’ dramatic undervaluation. The activist hedge fund believes that the undervaluation is due to flaws in the company’s strategic configuration.

“[We] felt tremendous frustration with the seemingly continuous stream of management, operational and financial missteps that have characterized recent performance, obscuring otherwise impressive growth in EBITDA as a result of the restructuring and undermining the significant intrinsic value of Unisys’ U.S. Government business,” said MMI Manager Clay Lifflander. “Moreover we are mystified by management and the board’s inaction in the face of Unisys’ ruinous stock price performance over the past year.”

MMI insists that the best option would be a sale or spin-off of its U.S. government business unit. The move would, according to the hedge fund, allow for the highest multiple of the business to have its value recognized, raise equity capital for the company at an attractive price, and provide employees of that unit with financial incentives as owners.

Unisys announced today that they received the letter and would evaluate it; however, they were quick to note that they were already in the middle of refocusing their business, cutting costs, and getting rid of assets that are not central to their operations.

“Unisys is executing a major, multiyear repositioning plan and has made significant progress in enhancing its profitability by refocusing our business, reducing costs, and divesting noncore assets,” a Unisys spokesman said yesterday.

In the end, this is all good news for shareholders. Whether or not the company will take any action on these proposals remains to be seen, but any sale or spin-off could prove to be a windfall for troubled Unisys shareholders. Combined, these factors make UIS a stock worth watching!

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