Beazer Homes USA Inc. (NYSE:BZH) may face some opposition soon after CtW Investment Group - a large union affiliate - called for the head of CEO Ian McCarthy after a series of problems with the company. Shareholders are hoping that this type of change can help unlock value in the company and take it out of its current streak of bad luck and mismanagement.

"Taken together, the combination of improper practices, compliance failures and poor corporate governance detailed above constitute a stinging indictment of Beazer’s leadership in general and of Mr. McCarthy in particular," said CtW in a letter to the board. "By swiftly replacing Mr. McCarthy with a qualified CEO and naming an independent director to assume Mr. Beazer’s role as chairman, the board can begin to restore the credibility Beazer desperately needs."

Beazer's stock is down nearly 80% so far this year with cancellations reaching an astounding 68% last quarter. Clearly, there are issues that need to be addressed immediately with this company. CtW proposed that hte company (1) replace CEO McCarthy, (2) name an independent board chairman, and (3) establish a legal and regulatory compliance committee to prevent future problems.

Notably, the company failed to respond to the hedge fund's first letter in early September. However, the hedge fund is continuing to press on with its demands by making them public. Shares in the company were up over 10% on news of these new demands. If changes do take place, BZH could quickly become a stock to watch!

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Pulte Homes, Inc. (PHM)

Capstone Turbine Corporation (NDAQ:CPST) shares rallied nearly four percent today after Lazard analyst Sanjay Shrestha initiated coverage with a $2.50 price target. The analyst noted that the company is making a turnaround and represents a great way to invest in the anticipated growth of the distributed generation market. Shareholders are clearly betting on the same conclusion that the company's turnaround will lead to substantially improved operating results in the future.

Some investors are concerned that top and bottom line growth in the company has been slowing down considerably in the short-term. Compared to fully year results published three years before, the company's annual revenue grew 66.7% durings its fiscal year while year to year quarterly sales decreased 14.5% in its most recent quarterly report. Similarly, the company's most recent full year loss was reduced by 23.1%; however, the most recent quarterly loss showed an increase of 11.5%.

Sanjay insists, however, that the company is in the process of a turnaround that should start yielding significant results going through 2012. "Our 2.50 price target reflects a 25x multiple on our 2012 EPS estimate of $0.20 discounted back at 25% for three years. We believe it is important to look at a 2012 earnings scenario given the company's growth trajectory and market penetration." So, it comes down to a question of the company's future earnings - is the company really on track to turn itself around?

The distributed generation market definitely seems to be growing as an alternative energy source. DG works be generating electricity from many small energy sources in a process that results in low maintenance, low pollution and high efficiencies. The problem is that they can occasionally have high costs; however, as we know, there are several markets that are willing to pay. Alternative energy sources are only going to grow in popularity as oil prices increase. Combined, these factors make CPST a stock worth watching!

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IAC/InterActiveCorp (NDAQ:IACI) shares rallied over six percent today after the diversified internet company announced that it would split up into five separate entities. Shareholders are hoping that the move will enable them to better capitalize on web media and services. The deal also included a deal with Google to provide sponsored search listings, which is expected to yield in excess of $3.5 billion in advertising revenue for the company.

The new IAC, led by Barry Diller, will be comprised of Ask.com, Citysearch, CursorMania, IAC Advertising Solutions, Evite, Excite, InsiderPages, iWon, My Fun Cards, My Way, Popular Screensavers, Smiley Central, Webfetti, Zwinky, Match.com, ServiceMagic, Shoebuy.com, Entertainment Publications, Reserve America, Black Web Enterprises, BustedTees, CollegeHumor, GarageGames, Gifts.com, Green.com, InstantAction, Primal Ventures, Pronto, Very Short List, Vimeo , and 23/6 along with its investments in Active.com, Brightcove, FiLife, Medem, MerchantCircle, OpenTable, Points.com and SHOP Channel.

The four new operations will include HSN for retailing, Ticketmaster, Interval International and LendingTree. Upon completion of the transaction, IAC's shareholders will own 100% of the equity in all five companies in a transaction that is expected to be tax-free. Shareholders are hoping that this transaction will help unlock value in the company that has been somewhat depressed despite its strong holdings of internet properties. This makes IACI a stock worth watching!

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