MAIR Holdings, Inc. (NDAQ:MAIR) shares rose $0.32, or 4.43%, to $7.07 today after Shultze Asset Management disclosed a 5.9% stake in the company and expressed their disappointment over the company's plan to pursue acquisitions that may be outside of the airline industry using shareholder cash. The hedge fund believes that the company's best course of action would be to distribute any and all cash remaining after the reorganization to shareholders as soon as possible in a tax-efficient manner.

Shultze also suggested that the company initiate efforts to sell its Big Sky subsidiary by immediately retaining a nationally recognized investment banking firm. In the end, the hedge fund believes that the company's shares are undervalued based on the amount of cash that would be distributed to shareholders if the board implements its suggestions. Finally, Shultze said that it would not be adverse to seeking representation on the board if necessary in order to pursue its objectives. Combined, these factors make MAIR a stock worth watching!

Related Companies
ExpressJet Holdings, Inc. (XJT)
SkyWest, Inc. (SKYW)
Mesa Air Group Inc. (MESA)

Alcoa Inc. (NYSE:AA) shares jumped $2.19, or 6.45%, to $36.14 after the company announced that it would explore strategic alternatives for its packaging and consumer business. The company said it would consider all options available including joint ventures, a spin-off, or sale of the business. In 2006, these businesses generated revenues of about $3.2 billion - or 10% of Alcoa's income. CEO Alain Belda said, "Our packaging and consumer business is improving and strengthening. However, now is the right time for us to explore whether these businesses may provide more value on their own or as a part of another company."

Separately, Alcoa also announced that it would explore strategic alternatives for its electrical and electronic solutions unit and its automotive castings business. These businesses had revenues totaling $1.6 billion in 2006, although they were only marginally profitable. The company said the process of reviewing these alternatives would be completed by the end of 2007. Many analysts see the move as beneficial for shareholders as it would unlock the value in these segments while allowing the company to focus more on their core competencies. There have also been rumors that Alcoa may be a buyout target, and selling off these divisions would make the company substantially cheaper. Whether or not anything amounts from this analysis remains to be seen; however, this is definitely a stock to watch!

Related Companies
Alcan, Inc. (AL)
Novelis Inc. (NVL)
Century Aluminum Company (CENX)

Emmis Communications Corporation (NDAQ:EMMS) shares moved up marginally after Martin Capital Management disclosed an 8.4% stake in the company and recommended that the company sell WQCD and possible KMVN, WKQX, and WLUP. CL King & Associates analyst James Boyle said that the station could be worth as much as $150 to $200 million. Moreover, the other stations listed by Martin Capital in Chicago and L.A. would also go for similarly high amounts. Combined, these transactions could help unlock significant value for shareholders.

According to Martin Capital, "the company would certainly have an opportunity to monetize valuable assets that are not contributing to cash flow in appropriate proportions to their private sale value". The hedge fund also speculated that these sales were the motive behind last years management buyout offer that was rejected by the board of directors as inadequate. While Emmis Communications refused to comment on any buyout rumors, this is definitely a stock to watch!

Related Companies
Viacom, Inc. (VIA)
News Corporation (NWS)
CBS Corporation (CBS)