Autobytel Inc. (NDAQ:ABTL) is an automotive marketing services company that brokers and facilitates the sale of automobiles through the Internet. They own several web portals, provide customer relationship management software and services, and help with data and lead generation services. The company's stock has been slowly declining since 2004 when it reached an all-time high of just under $15. Currently, the stock is trading at just over $3/shares after a 13D filing with the SEC revealed that their largest shareholder - Liberate Technologies - was seeking immediate change to maximize shareholder value

The lengthy letter attached to the 13D filing gave an overview of Liberate's position:

"We are one of Autobytel's largest shareholders. We invested in Autobytel because the company is positioned for significant upside and could become the leading online automotive firm.

However, the company is also at a crossroads. We believe that the company has three strategic choices. First, the company could move immediately to restructure its business, streamline its operations, reform its corporate governance and position itself for future growth. Second, it could engage in a sale process to maximize near-term value for shareholders. Or third, it could continue down the current path, and make no significant tactical or strategic adjustments.

We believe the first path leads to the greatest shareholder value over time and we strongly recommend it. But if the board is unwilling to implement change, then the company should immediately pursue a sale process. The third path will simply be a continuation of the last seven years - a steady destruction of shareholder value."

Shareholders applauded this move as ABTL stock rose 18% in mid-day trading. This level of support is encouraging because it may force management into changes, and also increases the chances of a successful proxy battle, if it came down to that. Although the stock may be a little overpriced in the short-term right now, it is certainly worth keeping an eye on as this story develops.

Related Companies
eBay Inc. (EBAY)
TeleTech Holdings, Inc. (TTEC)
Autonation, Inc. (AN)

Finish Line Inc. (NDAQ:FINL) is a mall-based specialty retailer of athletic, lifestyle and outdoor footwear. Recently their stock has caused some concern among investors after sliding from $18 to below $12 during the past four months. This drop came as a result of lower than expected earnings and sales numbers during the last few quarters. The drop has prompted one of their largest shareholders and activist hedge fund, the Clinton Group, to petition the Board to seek strategic alternatives in a recent 13D filing with the SEC. In a letter attached to the filing, the group said:

"We have invested in Finish Line because we believe the market price of Finish Line shares fails to reflect the true earnings power of the traditional Finish Line concept stores, management's ability to turnaround the recent same store sales trends, the potential for margin improvement and realization of operating leverage and the value potential of the Man Alive and Paiva concepts. Further, we departed our meeting with a greater sense that such beliefs are indeed accurate.

While we are supportive of management as operators of the business, we are writing this letter to encourage your board to take immediate steps to enhance shareholder value. Today, we choose to highlight the following as initial steps that the board should do to enhance shareholder value: (1) eliminate the unfriendly shareholder corporate governance structure including the dual class voting structure, (2) commence a Dutch tender offer in conjunction with a modest senior debt financing, and (3) to the extent the share price continues to languish, engage a reputable investment banking firm to explore strategic alternatives including, but not limited to, a going private transaction or an outright sale of the Company."

Currently, Finish Line is trading at a low 11x earnings (industry 16x) with no debt and a sizable $72 million (or $1.30 per share) in cash which would make them an attractive target to any potential acquirer. The Board's response remains to be seen; however, with the stock up over 8% in early trading today, it is definitely a situation that warrants keeping an eye on.

Related Companies
Bakers Footwear Group, Inc. (BKRS)
Payless ShoeSource Inc. (PSS)
DSW, Inc. (DSW)

A recent S&P 500 research report showed that corporate buybacks have risen to a record $116 billion in the second quarter this year, up 175% in only two years. Put another way, this number is very close to index companies' capital expenditures during the same period! This comes as a byproduct of another trend in corporate America - record amounts of cash in the bank, which has caused many companies to face more and more difficulty justifying the amount of cash they have tucked away. As a result, many investors are demanding that more be done to maximize shareholder value in the form of dividends and share buybacks. This is a good things for investors as it causes less shares to be on the market, which (in theory) increases the stock price.

Here are a few companies that recently announced buybacks:
Pep Boys (NYSE:PBY) - $100 million
Cascade Corporation (NYSE:CAE) - $80 million
Shuffle Master (NDAQ:SHFL) - $30 million
Sunco (NYSE:SUN) - $1 billion
Amazon.com (NDAQ:AMZN) - $500 million