United Rentals Inc. (NYSE:URI) shareholders may be in for a ride after SuttonBrook Capital Management disclosed a 5.83 percent stake in the company and announced that they may hold discussions with management, other shareholders or possible acquirers regarding a potential sale of the company. Many shareholders are still looking for an exit after the company's failed merger attempt with RAM Holdings (NDAQ:RAMR).

RAM Holdings and RAM Acquisition, subsidiaries of private equity giant Cerberus Capital Management, backed out of their planned $4 billion acquisition of United Rentals in November. United Rentals subsequently filed a lawsuit to force Cerberus to follow through with the buyout, since the firm gave no justifiable cause for terminating the deal. Cerberus contends, however, that they are only required to pay the $100 million breakup fee without reason.

SuttonBrook announced today that it would be in talks with interested parties regarding a possible merger, reorganization or liquidation of the company, sale of assets, material changes to the company's business structure, or changes in the board of directors, among other considerations. Many shareholders are hoping that other interested parties would be willing to make a bid or the company at or above the price that Cerberus was prepared to pay.

In the end, it is uncertain as to whether or not anything will become of this, but there are certainly many wildcards in play. Combined, these factors make URI a stock that is definitely worth watching over the next few months!

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It should come at no surprise that Fannie Mae (NYSE:FNM) has been loosing money, but just how much remains uncertain. The company's shares plummeted yesterday after it announced that it was cutting its quarterly dividend by 30 percent and raising $7 billion in new preferred securities after a strong reception to its previous offerings. Many investors are hunting for a bottom in this stock that has dropped nearly 50% during the past year.

Fannie Mae also announced today that it was expected to take credit losses of 8 to 10 basis points in 2008, compared to 4 to 6 basis points in 2007. The company said that 60% of its "seriously delinquent" loans have credit enhancement, based on the unpaid principal balance of the loans. The company also took the time to explain that the $7 billion offer yesterday will provide the company with a "capital cushion" over regulatory requirements in a "difficult market" and take advantage of select business growth opportunities.

The mortgage markets themselves remain in serious trouble as a significant number of subprime loans are expected to reset over the next 18 months. Many more near-prime loans are expected to do the same through 2010. It is important to note that all of these resets could cause further defaults, which could increase the number of homes on the market and lower prices. These lower prices then decrease the home equity the people rely on so much in the United States.

In the end, this problem is far from over and Fannie Mae may face further downside before it sees any significant upside. Regardless, this is definitely a stock to watch as once a bottom does it, there will be a great opportunity for profit!

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Websense Inc. (NDAQ:WBSN) shares moved up marginally after the Shamrock Activist Value Fund disclosed a 6.09 percent stake in the company - up from its previous stake of 5.03 percent. The activist hedge fund has made no indications that it would be seeking to unlock value, so many investors are assuming that this may simply be a value play worth watching.

Websense shares are more than 30 percent off of their highs as the company struggles in the tough environment. The web-security software company recently cut its third quarter revenue estimate amid concerns that it would see lower billings for the quarter. The company now expects third quarter revenues to be around $50.4 million compared with its prior view of $51.5 million.

Websense provides web filtering and web security software products that enable organizations to protect employees and confidential information from external web-based attacks, such as spyware and phishing, as well as analyze, report and manage how employees use computing resources and the Internet.

In the end, this continues to be a difficult business environment for Websense, which has been struggling with losses for several years. It will be interesting to see whether Shamrock takes action in its investment, or is simply confident that the company will eventually turn itself around organically. Combined, these factors make WBSN a stock worth watching!

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