Marvell Technology Group Ltd. (NDAQ:MRVL)
8K Filing by the Company
Marvell Technology announced today in an 8K filing with the SEC that the company was meeting with leaders at Intel today to further discuss their acquisition of Intel's communications and application processor business for $600 million plus the assumption by Marvell of certain liabilities.

SAC Capital
13G Filings (CY and PPCO)
SAC Capital revealed in two 13G filings today that it has raised its stake in Cypress Semiconductor Corporation (NYSE:CY) to 5.4% and Penwest Pharmaceuticals Co. (NDAQ:PPCO) to 6.2%. CY and PPCO are both undervalued companies that may be of interest for value investors, especially with this fund purchasing.

Yahoo Inc. (NDAQ:YHOO)
8K Filing by the Company
Yahoo announced Q3 EPS of $0.11, which was in-line with estimates. The company also revealed a $3 billion share buyback program over the next five years. The company's share price has been falling recently after failing to effectively compete with Google in the online advertising market. Moreover, the acquisition of YouTube only puts Yahoo further behind in the eyes of many investors.

Glenn H. Nussdorf revealed today in a 13D/A filing that he intends to explore the possibility of acquiring Parlux Fragrances Inc. (NDAQ:PARL) through a business combination. Shares of PARL moved up over 12% on the news to settle at $7.14. According to the filing:

"Mr. Nussdorf has begun to explore the possibility of making an acquisition proposal to acquire the Company in a business combination transaction. As part of such exploration, Mr. Nussdorf and/or his representatives have had preliminary discussions with the Company's management and have had preliminary discussions with potential financing sources to obtain the funds necessary for such a transaction. Mr. Nussdorf has made no decision at this time as to whether to pursue an acquisition proposal and no assurances can be given as to whether or not Mr. Nussdorf will submit such a proposal to the Company. In addition, if Mr. Nussdorf submits such a proposal, there can be no assurances as to whether it would be acceptable to the Company or whether any such proposal would result in a definitive agreement being executed." (Read More)

We first brought up the possibility of this buyout back in July, when Nussdorf first acquired 5% of the company and sought permission to purchase an additional 15%. Now, just about a month later, Nussdorf owns approximately 10.6% of the company and is still buying. It is likely that Nussdorf will use E Com Ventures, Inc. (NDAQ:ECMV) as a vehicle to purchase Parlux, as it is one of Parlux's largest customers. PARL remains undervalued and any buyout would likely come at a premium to the current price, so this is a stock that is definitely worth keeping an eye on as the situation progresses.

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Avon Products, Inc. (AVP)
Inter Parfums, Inc. (IPAR)

Lear Corporation (NYSE:LEA) disclosed in an 8-K filing with the SEC today that billionaire investor Carl Icahn had purchased $200 million worth of shares in a private placement deal with the company. The deal comes as the company has been facing problems executing its restructing plans in an effort to improve their fundamentals. Investors applauded the help, as the stock rose nearly 15% in intaday trading.

According to the filing:

"On October 17, 2006, Lear Corporation ('Lear') entered into a Stock Purchase Agreement (the 'Purchase Agreement') with Icahn Partners LP, Icahn Partners Master Fund LP and Koala Holding LLC (collectively, the 'Icahn Stockholders') pursuant to which Lear agreed to issue and sell to the Icahn Stockholders 8,695,653 shares of Lear’s common stock (the 'Common Stock') at a price per share of $23.00, for an aggregate purchase price of approximately $200,000,000 (the 'Offering'). Certain of the Icahn Stockholders are current stockholders of Lear."

Carl Icahn is well known for his activist approach to enforcing change within companies - most recently ImClone Systems (IMCL). Although investors clearly welcome his help, analysts remain divided with some calling this an opportunity to "aggressively" sell any open positions. Lear's stock is down from over $60 per share in 2004 to its current levels around $25 per share. Although undervalued as an asset play, the company is strugging with declining margins and a weak backlog. If Icahn can help the company successfully execute its restructuring, it could add a lot of value to this stock. It is definitely one worth watching.

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Stock exchanges moved higher today on news that Chicago Merchantile Exchange Holdings (NYSE:CME) was buying CBOT Holdings, Inc. (NYSE:BOT) in a bid to create a combined $25 billion global derivatives exchange. This acquisition follows the bidding war between NASDAQ and the NYSE for the London Stock Exchange, which eventually failed after the LSE rejected the bids in favor of a buyout by Ameriprise Financial. With the possibility of more consolidation in the air, many stock exchange stocks rose today:

InterContinental Exchange, Inc. (NYSE:ICE)
International Securities Exchange Holdings Inc. (NYSE:ISE)
NYSE Group, Inc. (NYSE:NYX)
NASDAQ Stock Market, Inc. (NDAQ:NDAQ)

Health Net, Inc. (NYSE:HNT)
8-K Filing by the Company
Health Net announced today that it would resume its share buyback program, which authorizes it to repurchase approximately $450 million worth of stock. The stock is currently trading down, however, after the company revised its quarterly estimates $0.03 below consensus and announced that its VP and CFO would resign effective November 10th.

Napster, Inc. (NDAQ:NAPS)
SEC Filing Watch
Napster moved higher today on renewed takeover rumors following comments made by ThinkEquity analyst Darren Aftahi, who commented that he didn't think there would be any slowdown in M&A activity in the digital media sector. He also commented that he believed NAPS was worth $5 - $7 in the event of a buyout. Napster is currently trading at $4.41, trading up 2.56% on the news today.

Nabi Biopharmaceuticals (NDAQ:NABI) may find itself in trouble after Third Point has apparently become fed up with management, stating in a 13D/A filing: "We have repeatedly warned this Board that we (and, we are confident, other shareholders) will not tolerate a "burning the furniture to heat the house" policy with respect to asset sales and spending, which is precisely the policy your October 12 conference call and this morning's letter appear to adopt ... We have now determined to pursue a consent solicitation to remove not only McLain but, as well, a majority of the Company's directors from the Board".

In the letter, Third Point makes several arguments supporting its elevated valuation of the company and plan to maximize shareholder value:

"As you are probably aware, on October 12th Nabi Biopharmaceuticals (the "Company") held a conference call following the announcement of the sale of PhosLo to Fresenius. In that call, Tom McLain articulated a plan which, when stripped down to its essence, would use the sale proceeds to fund $30 million per annum of cash burn in 2007 and 2008. Thus, the Company has proven our thesis that it contains valuable and coveted assets. The net present value of the PhosLo sale, which was exactly in line with our estimates, confirms our view that Nabi's assets are worth roughly twice as much as where the stock currently trades.

We have repeatedly warned this Board that we (and, we are confident, other shareholders) will not tolerate a "burning the furniture to heat the house" policy with respect to asset sales and spending, which is precisely the policy your October 12 conference call and this morning's letter appear to adopt. Indeed, there is no conceivable reason why Nabi should be in a cash burn position once the PhosLo disposition has been consummated and the major development projects sold or partnered. In fact, if the Company were to become an efficiently-run ongoing entity after such a restructuring, it should be earnings and cash-flow positive by mid-2007."

With many investors furious at management for bringing the company down from over $15 per share in 2004 down to around $5 per share now. Meanwhile the company's margins continue to decline while cash burn only increases. Third Point offers a way out for investors, and it appears that they are interested, as shares have moved up over 2% today on the news.

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InFocus Corporation (NDAQ:INFS) found itself in hot water on Friday when activist hedge fund Caxton Associates revealed their displeasure with management in a 13D filing made after market close on Friday. The stock has trended down from over $10 in 2004 to its current level around $2.60 per share.

In the filing, they noted:

"The Reporting Persons believe that the intrinsic value of the Company, and the amount a strategic or financial buyer would pay to acquire the Company, is significantly greater than the current market value of the Common Stock.  The Reporting Persons believe that this gap in value has resulted from the implementation by the Company's Board of Directors (the "Board") of a flawed business plan that has been detrimental to shareholder value. The Reporting Persons accordingly believe that the following steps should be taken promptly in order to preserve and maximize shareholder value:

1. The Reporting Persons believe that the Company's poor performance is the result of mistakes made by management and the Board's failure to grasp the strategic realities of the environment in which the Company operates.  At this time, we believe that the Company's operating management is capable of effectively executing the Board's strategic vision should it be given adequate guidance and oversight.  We do not, however, believe that the Board, as currently constituted, is providing the necessary strategic thinking.  Therefore, we believe that, unless significant changes are made promptly, changes in the Board are in the best interests of all shareholders.

2. The Board should include individuals with strong ties to large shareholders, as well as industry, legal and/or financial markets expertise, which have a firm grasp of the realities of the markets in which the Company operates.  Unless significant changes are made, the Board should be restructured to consist of Mr. Ranson, at least two individuals drawn from among the Company's largest shareholders, and other independent directors with relevant industry backgrounds.

3. As part of the Company's announced exploration of strategic alternatives, the Board should develop an operating strategy that not only protects and enhances the hard asset value of the Company, but also will allow the Company to be cash flow positive under any foreseeable circumstances.  The Board should immediately work with management to develop a business plan that, among other things, permits revenue growth only at a reasonable cost, fixes or exits money-losing operations, and leverages the Company's valuable brand name franchise and considerable intellectual property assets.  This new business plan should be assessed against other available alternatives, including the possibilities of a sale or restructuring of the Company.

The Reporting Persons continue to examine all of their options with respect to the possibility of taking actions that they believe will enhance shareholder value, including the option of actively seeking to replace members of the Board."

Caxton Associates is well known for enforcing their will upon incompotent management, going so far as to use proxy battles to overtake the Board. And with a 9% stake in the company, Caxton has good reason to make sure these changes happen quickly! Fundamentally, the company has terrible margins as a result of poor management but a substancial amount of cash ($1.70 per share). While the actual course of action pursued by Caxton and the company remains to be seen, this is definitely a stock to keep an eye on! The stock is trading up nearly 2% today on the news.

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eHealth, Inc. (NDAQ:EHTH)
Follow-up to Prior Post
Shares of eHealth rose on its first day traded as a public company, rising to $22 after being priced at an already increased $14 range.

Penn National Gaming Inc. (NDAQ:PENN)
SEC Filing Watchlist
PENN moved higher today on speculation that the company may be the target of a takeover. Ever since Harrah's was targetted in one of the largest LBOs ever, the entire gaming sector has been on edge. After call option volume increased greatly early in the day, many sources began to speculate that Boyd Gaming may have an interest in the company.

PRB Energy, Inc. (AMEX:PRB)
Press Release
PRB announced today that its Board of Directors had agreed to repurchase approximately 10% of their outstanding shares, which amounts to 750,000 through 2006. The transactions are said to take place on the open market or in negotiated transactions.

SAIC, Inc. (NYSE:SAI)
Follow-up to Prior Post
Shares of the newly public SAIC rose today to $17.25 and being priced at $15 (top end of their range). The offering for the company was made through a large syndicate that included Morgan Stanley, Bear Stearns, Citigroup, Wachovia, Banc of America, Cowen, Jefferies, Stifel Nicolaus, William Blair, KeyBanc, Mellon Financial and Stephens.

UnumProvident Corp. (NYSE:UNM) is higher by around 9% in today's trading on takeover rumors. Sun West of Canada has been quoted as one of the potential suitors, although no information has been confirmed. The speculation came as a result of unusual options activity earlier today (large buying of call options), which typically occurs when there is a takeover story, LBO, or other similar event that would spike the price. The company would not make a bad acquisition for the right company, as it is trading below enterprise value with a forward PE of just over 12x. Moreover, the company has a decent cash position with very little debt. This is definitely a company worth keeping an eye on incase these rumors materialize.

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Barnwell Industries, Inc. (AMEX:BRN) is under pressure from 16.3% holder Mercury Real Estate Advisors to sell off its Energy Division and institute a share buyback program. In the 13D filing with the SEC, Mercury attached a letter outlining their demands:

"As a significant shareholder of the Company for approximately the past two years, we have witnessed the Company’s preliminary success in unlocking the significant value in its desirable real estate holdings on the western coast of the main island of Hawaii and the improvement in profitability of its oil and natural gas business in Canada. Although there remains substantial unrealized value in these assets, we believe the Company’s current corporate structure, egregious executive compensation and disparate business divisions are fundamentally flawed. We further believe that strategic alternatives, including the sale of its energy division, must be evaluated to fully maximize the value of the Company for all shareholders. Finally, a substantial share buyback program should be put into effect immediately.

Based on our analysis, we believe the value of Barnwell’s real estate interests alone translates into a per share value in excess of $11 ... Looking at recent energy transactions in Alberta, we currently believe that the value of Barnwell’s proven BoEs (barrels of oil equivalent) translates on a standalone basis into a per share value of approximately $18 ... With the combined value of its real estate and energy divisions implying a $29 per share price at a minimum, Barnwell is a dramatically undervalued company.

However, its unnecessarily complex corporate structure, which includes independent businesses with no synergies, obfuscates its intrinsic value. Further, an executive management team at Barnwell characterized by nepotism in the Chief Executive Officer and President positions continues to reap million dollar-plus salaries, in part driving general and administrative expenses to an astronomical 21% of total revenues for the nine months ended June 30, 2006.

As the largest shareholder of the Company, we demand that the Board hire an investment bank to evaluate strategic alternatives, including a sale of the energy division and a share buyback program using proceeds received from lot sales in Increment I and II ... We believe that the Board should be committed to maximizing value for all shareholders, not paying excessive compensation to a complacent management team lacking in transparency." (Read the rest of the letter)

The stock is currently trading at around $21 per share. According to Mercury, if the company were to be valued at purely asset/breakup value, it would entail a 38% premium to the current market price. If the company is able to restructure and reduce expenses, this number could go substancially higher. The stock is undervalued with a catalyst - and therefore, definitely one worth keeping an eye on!

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