Acxiom Corporation (NYSE:ACXM) shares moved up marginally after MMI Investments announced that they would withdraw their opposition to the company's proposed merger at $27.10 per share. The change of heart comes amid an increasingly difficult credit market that has clearly caused concern that there would be a buyout at all as the share price is trading at only $22.62 per share.

Shareholders are clearly concerned that tightening credit markets may make it too difficult for the acquiring company to obtain necessary financing to complete the deal. This concern is so great that the stock is actually trading well below the buyout price, which causes increased concern that the buyout offer itself is the only thing keeping the company afloat.

MMI Investments was quick to note, however, that it reserved the right to nominate its own candidates to the company's board of directors in the event that a merger agreement is not consummated between the two companies. Shareholders are hoping that the activist hedge fund will be able to effect change in the struggling company before it is too late. Combined, these factors make ACXM a stock worth watching!

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Vitesse Semiconductor (OTC:VTSS) shares fell over eight percent today after Chapman Capital disclosed an 8.3 percent stake in the company and disclosed an e-mail sent to the company inquiring as to the impact of a recent court ruling against the company's financial auditor for negligence as it could equate to future risks. The series of communications also showed a shocking disregard for shareholders by the chief financial officer of the company.

The series of communications, found in the company's recent Schedule 13D/A filing, outlined a simple request by Chapman Capital for the company to make a five minute phone call to inquire about the potential impact of these rulings. This is an important matter since the financial statements the firm is drafting are necessary for the next annual meeting. The CFO not only refused to call the company but also turned down the hiring, by Chapman, of a personal assistant to assist the chief financial officer in completing his obligations to shareholders!

This is only the latest in a series of problems facing the company. Chapman Capital has been fighting the company recently to hold its annual meeting so that it can nominate its own slate of directors to effect change. The activist hedge fund believes that the company is using its failure to provide audited financial statements to the SEC as an excuse to not hold a meeting. Essentially, they are holding shareholders hostage by failing to provide financial statements to those same owners!

Shareholders are hoping that Chapman Capital will be able to nominate its own members to the company's board of directors as it could mean significant changes. Vitesse has already dropped from a high of over $3/share in 2006 to its current levels just above $1/share. Clearly, change is needed. This makes VTSS a stock worth watching!

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Charter Communications (NYSE:CHTR) shares spiked late yesterday before returning to previous levels after billionaire investor Paul Allen disclosed in a Schedule 13D/A filing that he may pursue a recapitalization, restructuring or possible going private transaction. Shareholders are hoping that he can effect some change given the company's stagnant share price.

Paul Allen owns a majority stake in the company through Class B shares that hold greater voting rights than regular shares. There has been much speculation that Charter may become a takeover target given the fact that it has over five and a half million subscribers and is one of the only traditional cable companies that remains open to a sale. However, the CEO continues to insist that the company is on the buying end not the selling end.

There are a lot of rumors going around as to Paul Allen's plans for the company. Some suggest that he will recapitalize the company and provide a dividend to shareholders while others insist that he is intent on buying the company outright. Regardless, any measures to improve shareholder value is a welcome change for Charter shareholders. This makes CHTR a stock worth watching!

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Berkshire Hathaway (NYSE:BRK) disclosed its long-awaited Schedule 13F/HR today containing Warren Buffet's latest holdings. Among other things, the document showed that the Oracle of Omaha has loaded up on Dow Jones shares while hiding his stake in two railroad companies.

The Schedule 13F/HR statement showed new stakes in Bank of America (NYSE:BAC) and Dow Jones (NYSE:DJ). The famous investor also raised his stakes in several companies, including Johnson & Johnson (NYSE:JNJ), Nike Inc. (NYSE:NKE), Proctor & Gamble (NYSE:PG), US Bancorp (NYSE:USB) and others. Buffet appears to be bullish on banking stocks while taking a short-term position in Dow Jones despite his bearish sentiment on the newspaper business.

Interestingly, Warren Buffet decided to request permission from the SEC to not disclose its railroad holdings in Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC). These requests are somewhat standard for Buffet given his widespread notoriety, but still led to much speculation as to his plans for the companies. Railroads have become a target for many investors as many remain substantially undervalued.

In the end, Warren Buffet's list of holdings continue to have an impact on investors. Watching Berkshire Hathaway's Schedule 13F/HR and Form 4s can be extremely useful in tracking the activity of the famous investor. You can setup free email and RSS alerts to track his holdings and more at SECFilings.com!

Unisys Corporation (NYSE:UIS) is set to move higher today after MMI Investments filed to boost its stake in the company above 10 percent but not more than 15 percent. The Hart Scott Rodino Antitrust Act required the activist hedge fund to seek permission before making its purchase, which gives investors a chance to jump on the opportunity.

Unisys is a worldwide technology services and solutions company whose consultants assist clients with general consulting, systems integration, outsourcing, infrastructure, and server technology. The company's stock is currently trading at $7.53 slightly off of its 52-week high earlier this year of $9.70.

A glance at the financials shows that the company is trading slightly below enterprise value with a P/E multiple of 17x - below the industry's 24x. It is also worth noting that the company has approximately $520 million - or $1.49 per share. This has led to speculation that MMI may be interested in unlocking value for shareholders through a special dividend or share repurchasing using the company's substantial amount of cash.

Unfortunately, the company faces negative quarterly growth, a paltry 1.78% ROA and a -19.83% ROI. These numbers point to a company that is struggling to operate cleanly and efficiently and that is also facing problems extracting revenues from its customers. As a result, MMI may have to work to help the company turn itself around before any value can be had from the company's pile of cash. However, this situation is definitely one worth watching!

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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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TXU Corp. (NYSE:TXU) is set to begin its road show today garner support for a $32 billion buyout by private equity investors, indicating concern about whether it will be able to drum up the necessary 2/3 vote to seal the deal. The deal put together by KKR and TPG values TXU shares at $69.25 a piece - a 25% premium to the predeal share price. However, some shareholders aren't so sure that this is the best route to unlock value.

Many investors are concerned that the company negotiated the buyout price while it was under fire for building 11 coal power plants while also facing criticism for excessive executive compensation. Moreover, the outlook for the U.S. power market has improved substantially since the deal was announced last Spring. Combined, these factors seem to imply that the buyout offer may now be too low to be justified.

As a result, some investors believe that TXU should pursue a split-up instead where it would be divided into three businesses - an energy-driven wires business, a power-generation business, and an energy retailer. Te company came out strongly against such ideas in its proxy filing yesterday where it indicated that a buyout represents a much better deal for shareholders. However, the company said that if the buyout wasn't approved, this was the route that it would take.

Whether or not the company can drum up enough support to go through with their buyout offer remains to be seen. However, the possibility of a split-up or increased buyout offer make TXU a stock that is definitely worth watching!

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Commerce Energy Group (AMEX:EGR) shares moved up $0.04, or 1.84%, to $2.21 today after Daniel Zeff disclosed a 10.7% stake in the company and issued a letter to the company's board of directors. Zeff expressed his concern that the company's operating performance is significantly below its potential performance. Consequently, he has petitioned the company to consider a variety of strategic alternatives including a cash merger.

Daniel Zeff's letter expressed particular concern over the company's apprent rejection of a standing $2.50-$2.75 offer for the company from Universal Energy. Without explanation, the company apparently not only rejected the offer but failed to even consider it. Clearly, this is a violation of the board of director's fudiciary duty to shareholders.

Here is a copy of the entire letter sent:

Why have you not responded to my letter regarding the cash takeover offer for our company?

Steve Boss, the company's CEO, Charles Bayless, a director, and Lawrence Clayton, the company's former CFO, have made it clear to me in personal conversations that Universal Energy's recent expression of interest to acquire the company in a cash buyout for $2.50-$2.75 was reasonable and should be explored. It is also clear that there are other potential acquirers of our company and that all reasonable offers should be explored.

Without explanation of the company's rejection or consideration of Universal's offer and other potential offers, I must assume that you are shirking your fiduciary responsibilities. The Board has an obligation to carefully investigate, evaluate and respond to the expression of interest in light of the company's other alternatives. Before your former CFO left the company, I am told that Mr. Clayton wrote to the Board that he believes you are acting against shareholder interests by not exploring a sale at this time.

Commerce Energy's Board appears to be split on the issue of exploring a sale, and with an even six members, the Board is ineffectual. It has become apparent to me that you, and Directors Gary Hessenauer and Mark Juergensen are improperly delaying and obstructing the process of exploring reasonable offers for the company that could create shareholder value.

You continue to hide behind your legal counsel and your "processes and strategies in place" to avoid thorough consideration of a sale of the company and, more egregiously, to advance your own interests. Those interests appear to include a potential replacement of the CEO with Mr. Hessenauer. Mr. Hessenauer
was apparently involved in the last CEO search (that resulted in Mr. Boss' hiring) and was outside of the top ten candidates considered.

The Board must take action now to break this deadlock and to move forward with a sale of the company, by removing yourself and other directors acting against shareholders, and by adding a new member to the Board. I hereby re-submit Mr. Andrew Dailey as a nominee for the Board. I previously submitted his name for nomination to CEO, Steve Boss.

Commerce Energy's shareholders do not have the luxury of time and must consider takeover offers now, before the planned August 17 Board meeting and
before any potentially  damaging new management changes take place. Mr. Hessenauer offered to hold a special meeting for me with the independent Board members (which includes all members except Steve Boss) at the end of August. I demand that you respond publicly now and with your current CEO involved.

Bob, your actions appear to be personally  motivated or simply irrational, particularly in light of your minor personal holdings in Commerce Energy and the Board's meager 2% position in the stock. Why are you not acting on behalf of the real owners of this company? Zeff Capital Partners owns 10.7% of the stock and yet you refuse to respond to our inquiries or act in our best interests. It has also become clear that you do not fully understand how customer attrition will be affected by operational changes (i.e. firings) that you may seek at the company. So, not only will your  actions damage EGR's shareholders, but our employees and our customers as well. Bob, this is not the right job for you and I ask again that you remove yourself from the Board of Directors of Commerce Energy Group.

Whether you are removed from the Board or an additional seat is added, Commerce Energy's directors must act in the shareholders' best interests and
move forward with a sale of the company.

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