Metromedia Inc. (OTC:MTRM) shares rose marginally today after Fursa reiterated its plee that shareholders refrain from tendering their shares to an existing $1.80 per share buyout offer because they are planning on offering $2.05 per share - a 14% premium. Here is a copy of their letter:

Dear Metromedia Stockholder:

We at Fursa Alternative Strategies (“Fursa”) would like to take this opportunity to reiterate our proposal to acquire Metromedia International Group, Inc. (“Metromedia”) for $2.05 per common share. Our due diligence process is well under way, and we anticipate finishing shortly.

We strongly urge all Metromedia stockholders NOT to prematurely tender their shares, and that those who have tendered withdraw their shares until Fursa can complete the due diligence and finalize its offer. If CaucusCom Ventures L.P. and CaucusCom Mergerco Corp (“CaucusCom”) receive fewer shares than required to satisfy the Minimum Condition (as defined in the merger agreement), they are required to extend their tender offer under the terms of the merger agreement, and cannot terminate the merger agreement. Holding your shares will provide Fursa with the opportunity to complete its due diligence process, and it will provide you with the opportunity to review all information regarding Fursa’s superior $2.05 per share cash proposal.

Fursa’s proposed tender offer is superior to the offer from CaucusCom, in that Fursa’s proposal of $2.05 per common share represents a 14% premium over CaucusCom’s $1.80 per share cash offer, while keeping all other terms and conditions, including, without limitation, the same structure (tender offer with a backend merger), representations, warranties, covenants and conditions.

Furthermore, Fursa is highly confident in its ability to obtain the necessary financing for a transaction.

Thank you very much for your support. We look forward to finalizing our offer soon.

Sincerely,

William F. Harley, President

Clearly shareholders stand to benefit if Fursa is successful in either succeeding in its own $2.05 bid or forces the other bidder to up their bid. This makes MTRM a stock worth watching!

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China Security and Surveillance Technology (OTC:CSCT) shares may soon get a much needed boost from Conrad Bringjourn's Clinton Group. The activist hedge fund sent a letter to the company commending management's execution to date but cautioning that its shares were substantially undervalued. Shareholders are hoping that the hedge fund can work with CSCT to unlock value for everyone.

China Security and Surveillance is trading below its value for several reasons. First, the company is traded over-the-counter which makes it much less liquid and thus less preferable for investors. Secondly, there is very little in terms of analyst coverage or investor relations, which makes it difficult for investors to find the company. Combined, these factors have led to a company that is trading at just 12.1x consensus 2008 EPS with a PEG of only 0.4x - making the stock extremely undervalued given management's execution!

The Clinton Group offered to help the company obtain a timely listing on the New York Stock Exchange (NYSE) that would help it enable it to offer investors greater liquidity while also attracting more attention. More, E-House China's recent IPO on the NYSE and subsequent dramatic rise is a clear indication of Wall Street's appetite for successful Chinese firms. Shareholders are hoping for similar results from this company after a listing.

The Clinton Group offered to support and advise the company in finding two independent directors as well as introducing the company to equity research analysts and prominent investment banks. If successful in generating additional interest and liquidity in the company, CSCT could see a substantial rise in share value. This makes the stock one worth watching!

United Online (NDAQ:UNTD) shares moved up $1.06, or 7.95%, to $14.40 in early trading today after the company filed an S-1 with the SEC yesterday indicating that it would IPO its Classmates.com holdings and raise $125 million. Many investors are speculating that this IPO would prove to be a boom for the struggling dial-up internet provider.

Classmates.com is a social networking website that connections alumni with eachother. The segment reported revenues of $42.4 million in the quarter ending in March on a loss of $250,000. And the business is only continuing to grow with revenues in 2006 topping $139 million. Revenues this year are expected to come in at around $200 million or more.

Given the valuations being thrown around by Facebook.com and others in the social networking space it would not be unreasonable to put a 5x revenues valuation on the company. Assuming revenues of around $200 million this year, the company could be worth as much as $1 billion. Obviously this is great news for United Online shareholders as their entire company is worth just under $1 billion itself.

Whether or not this IPO sees a tremendous amount of success remains to be seen; however, given the strength of the social networking space and the fact that this company has a leading market position makes UNTD a stock worth watching!

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