Vitesse Semiconductor (OTC:VTSS) directors may face some opposition in coming months as Chapman Capital prepares to do battle. The activist hedge fund announced its intentions today to investigate management's backgrounds, affiliations and board qualifications. Shareholders are hoping that this move could forces changes at a company that hasn't held a board meeting in over two years.

Chapman Capital's recent Schedule 13D/A filing is the latest in a long line of letter criticizing the company for unethical - and allegedly illegal - actions on behalf of management and the board. The largest problem is the fact that the company hasn't had a reasonable annual meeting in more than two years. The company applied to the SEC for relief but was turned away, which prompted Chapman to launch a campaign to find evidence of misconduct.

Robert L. Chapman, Jr., Managing Member of Chapman Capital, commented, "Nearly two years has passed since Vitesse's owners have been allowed to attend a shareholders meeting to elect directors. Instead, foisted upon Vitesse's owners are these 're-treaded' substitutes who have been admitted to Vitesse's boardroom without the legitimacy of being vetted, much less elected, by the owners to whom they purport to report. To Chapman Capital, Vitesse's Board and senior management seem quite anxious to perpetuate the absolute veto power that has allowed them to discriminate against director candidates who may 'disrupt' their stock option and cash compensation enriching party, while holding them accountable and potentially opening 'back-dated option closets' concealing a skeleton or two."

An additional very detailed letter outlined the evidence obtained thus far while the hedge fund also provided a hotline through which others in the industry could call in reports. If change is effected, it could mean hefty profits for shareholders benefiting from a turnaround. This makes VTSS a stock worth watching!

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Google Inc. (NDAQ:GOOG) announced a stake in Chinese social networking company Tianya.cn. The size of the transaction and stake were not disclosed, but the move underscores the difficulties that the three Internet giants (Microsoft, Google, and Yahoo) are facing when entering foreign markets - particularly China. Shareholders are hoping that this move will help give Google a foothold it what could become one of the world's largest markets.

Currently, Baidu has an insurmountable lead on Google and the rest of the US search providers when it comes to pure search. The Chinese internet giant has over 57% of the market while Google stands with just 21% as of last year. As a result, it appears that Google and other US companies are targeting other sectors, like social networking, video games, and more.

Just how big is this market? Well, currently there are around 162 million Internet users in China with only about 12% of the population using it. This number is expected to swell to 70% by 2010 where they are expected to surpass the number of US users. Consequently, investors should be watching closely for opportunities to invest in Chinese internet companies that could become buyout targets as well as those like Baidu that have a strangle-hold on the market.

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PDL BioPharma (NDAQ:PDLI) CEO Mark McDade resigned yesterday after a month-long internal investigation into improper personal conduct and breach of fudiciary duty. The investigation was spearheaded by activist investor Daniel Loeb's Third Point who has insisted for months that McDade was behind the company's poor performance. Meanwhile, shareholders clearly applauded the move as shares rose over six percent mid-day.

According to a company press release, "PDL BioPharma, announced that a three month internal investigation of the company's chief executive officer (CEO), Mark McDade, found no credible evidence of improper personal conduct or breach of fudiciary by McDade to corroborate the various allegations investigated. The company also announced that McDade, following the investigation and due to the personal toll created by unsubstantiated rumors and related investigation, he has decided to step down as CEO and a member of the board by the end of 2007."

Loeb's Third Point has been pushing for the executive to leave the company and also proposed a potential sale of the company to unlock value for shareholders. Many shareholders are hoping that now that the executive is out of office, the activist shareholder may have more luck with its goals. If successful, a sale of the company could mean significant returns for shareholders. This makes PDLI a stock worth watching!

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