Would appreciate your updated views on PKI with the recent news that Simpson is taking steps to field 9 new board members.
What is your educated guess on how this plays out?
I see the chart indicating a bounce opportunity as it's trading back to levels currently that look like triple bottom to my non educated eye.
Appreciate your assesment.
This feud has been simmering for a year. Simpson likely wants a quick sale of the company, to at least improve its return on its 19.8% investment. PKI says Simpson is short sighted, biased and that Simpson is trying to control the company without paying a control premium. Simpson wants the CEO gone. In his 14 years, shares are up 75%, hardly a stunning performance. PKI offered a board seat to Simpson (at its May annual meeting) and added two directors last month to appease Simpson and Engine Capital. It's hard to call this. PKI will fight hard, and we would agree that Simpson looks to be opportunistic. But, there are a lot of unhappy shareholders who might vote for 'any' change. We would expect a lot of fighting via press releases, and we would give Simpson a 50/50 chance of taken over the board in May. After that, the board would focus (as stated in letters) on capital allocation, with asset sales but more likely (in our view) putting the whole company up for sale at some point.