Macrovision Corp. (NDAQ:MVSN) shares moved up marginally after Blum Capital disclosed a 5 percent stake in the company last Friday, according to a Schedule 13D/A filing with the SEC. Shareholders are hoping that the activist hedge fund will work with management to unlock value in the company.

What is in the cards for the software company? Well, Macrovision's balance sheet is extremely solid with $413 million in cash with only $240 million in total debt. Often times, hedge funds will look to distribute this spare cash to shareholders via a share buyback or special dividend.

The problem is that Macrovision is showing negative year-over-year cash flow growth of -80 percent with an EBITDA margin of 18.4 percent. This has many speculating that Blum Capital will step in to reduce the company's capital spending and distribute the spare cash to shareholders via a share buyback or special dividend.

Whether or not the hedge fund will be successful in implementing this strategy remains to be seen; however, with a growing 5 percent stake in the company they may have enough say to make it happen. Combined, these factors make MVSN a stock worth watching!

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Lehman Brothers (NYSE:LEH) may have greater exposure in the debt market than its peers but many analysts believe the bank's 1.4x book value is too pessimistic, especially considering the bank's move to diversify away from its bond holdings. Many others believe, however, that brokerages and banks have yet to hit their lows as the credit and mortgage crisis continues.

Lehman Brothers shares are down more than 30 percent this year in a situation that reminds many of the Russian default that caused major concerns for the bank back in 1998. While this situation isn't nearly as critical, the lesson rings true that shareholders willing to weather the storm may be rewarded handsomely. The recent move down has made LEH the second cheapest major investment bank behind Bear Stearns.

Lehman Brothers continues to have one of the best balance sheets in the industry. While the company's cap structure may have some room for improvement, its price/cash flow, price/book, and price/sales ratios are all extremely strong. The stock also trades at 6x cash flows, which indicates that investors are assigning relatively little value to the company's non-cash assets and earnings potential. Combined, these factors make LEH a stock worth watching!

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Accredited Home Lenders Corp. (NDAQ:LEND) shares continued their rise today after receiving a renewed buyout bid on Friday that jumped shares more than 50 percent. The company announced a dividend today which was an indicator to some that the company wants more in a potential sale that it is keen on completing.

Lone Star announced late last week that a deal would still be possible at $8.50 per share in a deal worth $214 million. Many analysts and shareholders had questioned the previous $15.10/share bid amid concerns about the credit and mortgage markets - and for good reason! The new bid comes at a 44 percent discount.

Tough mortgage markets and credit markets prompted Lone Star attempting to back out of the bid several times. Accredited countered by suing the hedge fund in an attempt to force the sale to go through. The latest offer was extended to September 12th and the company has yet to respond.

"Under current conditions, the company may suffer further declines in value and have a difficult time serving as a going concern," Lone Star said in a letter. "It is patently clear that swift action by the board of directors is needed to preserve the company's existing enterprise value."

Many analysts and shareholders believe that the company will be forced to go through with this deal as it has already publicly stated that bankruptcy is in the cards in the event that it decides to go it alone. However, many are now guessing its motives after the company's recent decision to issue a dividend and cut its workforce. Combined, these factors make LEND a stock worth watching!

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