Copart Inc. (NDAQ:CPRT) executives and board members may be in for a shake up after Jana Partners disclosed a 5 percent stake in the company, according to a Schedule 13D filing with the SEC. Jana is well known in the hedge fund community as a constructive activist that works with management to improve operations and unlock shareholder value. Many investors are hoping that they can do the same at Copart.

Many analysts have been impressed with Copart's results recently as the company generated robust organic growth, gained market share and witnessed progress at its UK operations last quarter. The auto-seller hit a 52-week high last quarter after it announced results that beat Wall Street estimates by a wide margin. Now, estimates for next quarter are being raised even further.

Copart is a provider of vehicle remarketing services in the United States and United Kingdom. The company provides vehicle suppliers, like insurance companies, with a range of remarketing services aimed at helping them process and sell salvage vehicles primarily over the internet through the company's virtual bidding internet auction-style sales technology known as VB2.

So, how does the Copart look now? Well, the company is growing at a strong pace but is priced with a PEG ratio of 1.68, meaning that it may be slightly overvalued. However, the company also has no debt and $250 million in cash, meaning that there may be opportunities to leverage up and unlock value for shareholders. Additionally, insiders still hold over 30% of the company's stock, indicating a strong belief in the future. Combined, these factors make CPRT a stock worth watching!

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Sprint Nextel Corp (NYSE:S) announced that Dan Hesse would be the company's new chief executive after Gary Forsee agreed to step down amid shareholder pressure. The move comes as the telecommunication company is struggling to regain its foothold and win back market share that it has lost over the past year. Shareholders are hoping that this could be the change needed to finally turn around the company's stock.

Dan Hesse has been serving as chief executive at Embarq, which was spun off from Sprint not long ago. His performance there and at AT&T earlier drew applause from Wall Street. Now, many are hoping that the new chief executive will be able to help the company recover from its failed 2005 merger with Nextel and help the company more effectively compete with rivals Verizon Wireless and AT&T.

The culture problems at Sprint Nextel still run deep - the two do not even share a headquarters! Sprint employees insist that Nextel's poor network infrastructure was the cause of the recent turmoil while Nextel employees insist that Sprint is an overly bureaucratic and slow-moving company that is unable to keep up with the industry trends. It was a combination of these two combined with a divided workforce that are the root of the problems today.

One other key issue will by the so-called WiMax initiative, which has proven to be a cash drain on the company. The plan involves spending a further $5 billion to build out a new high-speed wireless network using WiMax technology. The company's attempt to split the job with Clearwire Corp recently fell through while the company also rejected a $5 billion injection. This has led many to believe that the company may be willing to cut back on the program.

Overall, it will be interesting to see whether ot not Dan Hesse can integrate these two cultures and turn Sprint Nextel into a competitor once again. It will also be interesting to see what becomes of the WiMax initiative that has so many people divided. Combined, these factors make S a stock worth watching!

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Loews Corporation (NYSE:LTR) announced yesterday that it would finally separate itself from the tobacco business via a spin off of its Lorillard Tobacco interests. The diversified conglomerate had been slowly divesting its stake for some time, but has enjoyed a good ride on the stock over the past few years. Shareholders are now eyeing the new spin off as an opportunity of its own.

Lorillard Tobacco is the maker of Kent, Newport, Maverick and True brand tobacco products. The value of the division is apparent via the tracking stock setup by Loews in 2002, known as the Carolina Group. Since its inception, Loews has sold shares in blocks several times to the group. Now, Loews is finally independent enough to fully separate itself from the tobacco business.

The tobacco industry has been shaken recently by a series of mergers and acquisitions and owning a small independent company with top-notch brand names may not be such a bad move. Interestingly, the company is divesting its stake in the tobacco segment by offering one share of the new stock in exchange for one share in the company. Effectively its a share buyback.

In the end, this is good news for shareholders since it is an opportunity for them to enter a new business. Unfortunately, since the shares are optionally acquired, we will likely not see the initial selling after the spin off. Regardless, this is definitely a stock worth watching!

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