Brink's Company (NYSE:BCO) board member and activist investor Thomas Hudson of Pirate Capital demanded in a letter that the security services provider consider a tax-free split-up of the company. The news comes after Pirate Capital's long-publicized battle with the company to unlock shareholder value. Many are hoping that the large support for a break-up may finally do just that!

A survey of shareholders, conducted by D.F. King & Co., polled 90.17% of the outstanding Brink's shareholders and found that 49.4% of them wanted the company to pursue a split-up while 66.95% said that they would like the board to review the possibility of a split-up. Hudson was quick to point out that if management did not consider the possibility of a split-up by the next election, shareholders could put them out of a job.

"While a sale of the company, as opposed to a tax-free split-up, could be more lucrative to you under your change of control agreement with Brink's, potentially enriching you with millions of dollars, I believe the survey is conclusive as to the large shareholder preference for a split-up," Hudson said in the letter.

Hudson's Pirate Capital currently holds an 8.6% stake in the company and would stand to gain substantially from any measures intended on unlocking shareholder value. This makes BCO a stock worth watching!

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MercadoLibre Inc.'s upcoming initial public offering has been generating a lot of buzz lately, especially given its largest investor - eBay Inc. (NDAQ:EBAY). The Buenos Aires company owns and operates auction websites in several South American countries, including Argentina, Uruguay, Chile, Brazil, Columbia, Ecuador, Peru, Mexico and Venezuela. It is also launching portals in Costa Rica, the Dominican Republic and Panama.

MercadoLibre is expected to raise $270 million in its initial public offering. The company is expected to sell 2.6 million shares for between $16 and $18 each while stockholders will sell an additional 16 million shares. Interestingly, eBay does not plan to sell any of its 8.1 million share stake during the offering and will control around 19.7% of the company's outstanding shares. Since eBay didn't acquire the company outright, they clearly do not see a huge opportunity in Latin America yet enough to retain their stake and see where things go.

MercadoLibre reported 2006 net income of $1.1 million on revenues of $52.1 million. The first quarter of 2007 proved to be blockbuster for the company when it reported net income of $1 million on revenues of $16.5 million. Whether or not the company succeeds remains to be seen, but this is definitely a stock to watch as the situation unfolds!

MASSBANK Inc. (NDAQ:MASB) shares rose marginally after Lawrence B. Seidman disclosed a 5.83% and made several suggestions to the company aimed at unlocking value for shareholders. The activist investor recommended that the company consider (1) an accelerated share repurchase program, including considering a dutch auction, (2) a new management team capable of making proper loans, and (3) a sale of the company.

MASSBANK is clearly in need of change. A quick look at the balance sheet shows a clear dropoff in earnings. Total assets have gone down to 15 consecutive quarters, from $1 billion in September of 2003 to $817 million in June 2007. Net loans have declined for 7 consecutive quarters from $230 million in September 2005 to $197 million in the most recent quarter. And total deposits have gone down 15 consecutive quarters, from $899 million in September 2003 to $705 million in the most recent quarter.

Perhaps more troubling is the company's sloth-like response to market conditions and weak balance sheet. Amazingly, net loans only account for 24% of total assets. No other exchange-traded thrift has a ratio below 32% and most have somewhere around 71%. Meanwhile, cash and cash equivalents accounts for 27% of assets! This means a cash to loans ratio of 112%! This is beyond conservative and bordering sheet laziness on the part of management.

Seidman also disclosed a rather disturbing conversation that he had with management. The investor contacted Mr. Brandi - the President and CEO - to discuss MASB's strategic plans for transforming the balance sheet, improving earnings, and returning capital to shareholders. Mr. Brandi then insulted Seidman by saying there was no way he'd ever meet the board of directors. After quickly dismissing the request, Mr. Brandi then challenged Seidman to a proxy fight in 2008. The CEO insisted that the activist investor could never win because shareholders love him so much.

In the end, this company has several problems that need to be addressed as soon as possible. The proposals made by Mr. Seidman make sense and should be considered by the board of directors. Combined, these factors make MASB a stock worth watching!

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