Raging Capital buys 5.1% Stake in Emerson Radio

Highlights from the letter include:

The Reporting Persons intend to review their investment in the Issuer on a continuing basis and may from time to time engage in discussions with management and the board of directors of the Issuer concerning the business, operations and future plans of the Issuer.  The Reporting Persons specifically intend to engage in discussions with the Issuer concerning alternatives available to the Issuer to return excess capital to stockholders in a timely manner.  The Reporting Persons also intend to engage in discussions with the Issuer concerning the status and potential consequences to the Issuer of the appointment of Provisional Liquidators over The Grande Holdings Limited (“Grande”) and the subsequent filing by Grande with the United States Bankruptcy Court in Manhattan of a Chapter 15 petition.  The Reporting Persons intend to evaluate whether the board of directors is truly independent and acting in the best interests of stockholders based on the results of the foregoing discussions.  Depending on various factors including, without limitation, the Issuer’s financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, making proposals to the Issuer concerning changes to the capitalization, ownership structure, board structure or operations of the Issuer, purchasing or proposing to purchase additional Shares (including Shares owned by Grande), selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares or changing their intention with respect to any and all matters referred to in Item 4.

Shares of Common Stock Purchased

Price Per Share($)

Date of Purchase

RAGING CAPITAL FUND, LP

6,835		1.6000	11/28/2011
7,696		1.5800	11/29/2011
2,729		1.5720	11/30/2011
3,420		1.5700	12/05/2011
2,922		1.5766	12/12/2011
39		1.5949	12/13/2011
797		1.5700	12/14/2011
1,555		1.5970	12/15/2011
8,627		1.5779	12/19/2011
1,810		1.5800	12/22/2011

RAGING CAPITAL FUND (QP), LP

4,969		1.6000	11/21/2011
100		1.6000	11/22/2011
5,960		1.6000	11/23/2011
15,800		1.6000	11/25/2011
10,749		1.6000	11/28/2011
12,102		1.5800	11/29/2011
4,291		1.5720	11/30/2011
5,446		1.5800	12/01/2011
700		1.5700	12/02/2011
5,377		1.5700	12/05/2011
3,700		1.5700	12/07/2011
12,200		1.5889	12/08/2011
4,593		1.5766	12/12/2011
730		1.5948	12/13/2011
1,253		1.5700	12/14/2011
2,445		1.5970	12/15/2011
775		1.5700	12/16/2011
13,566		1.5779	12/19/2011
5,700		1.5949	12/20/2011
29,300		1.5500	12/21/2011
2,845		1.5800	12/22/2011
7,600		1.5977	12/23/2011
9,258		1.5882	12/29/2011
600		1.5700	12/30/2011

Greenlight Capital 2011 Letter

My Investing Notebook: Greenlight Capital 2011 Letter:

'via Blog this'

Relational files 13D for PMC Sierra stake

Per the filing:

The Reporting Persons believe the Company’s share price does not adequately reflect the longer-term earnings and cash flow generating potential that is currently depressed due to delays in converting design wins to sales. In addition, the Company maintains a net cash balance (cash, short-term investments and investment securities, less short and long-term debt) as of October 2, 2011, as reported by the Company on its Form 10-Q dated November 10, 2011, representing approximately 30% of the Company’s market capitalization as of January 13, 2012.

The Reporting Persons believe the Share discount is at least partially attributable to the Company’s business mix and capital allocation strategy. While the Reporting Persons believe that anticipated sales growth in both the Optical and Mobile segments will lead to an improved valuation, to the extent these sales do not materialize and the discount persists, the Company’s board may need to consider broader strategic alternatives. Since their initial investment in January 2011, the Reporting Persons have maintained a dialogue with the Company’s management and members of the board and have periodically presented their views and concerns.

While the Reporting Persons have gained confidence in the Company’s board and management and their ability to maximize shareholder value going forward, the Company’s sub-optimal size and diverse business mix create numerous capital allocation challenges in maximizing R&D spending efficiency. Longer-term, to improve R&D efficiency and achieve scale benefits, it may be necessary to rationalize the business mix and/or pursue industry consolidation.

The Reporting Persons intend to closely monitor management’s progress toward improving the Company’s operations and ultimately the share price. Depending on such progress (or lack thereof) the Reporting Persons may modify their plans.

The Reporting Persons and their representatives and advisers intend to continue from time to time to discuss the Company and its performance with members of the Company’s board and management. In addition, the Reporting Persons and their representatives and advisers may communicate with other shareholders, industry participants, and other interested parties concerning the Company. Although the Reporting Persons do not have any current plans other than the monitoring program outlined above, the Reporting Persons may in the future exercise any and all of their respective rights as shareholders of the Company in a manner consistent with their equity interests, including seeking representation on the Company’s board of directors at a special or annual meeting of the Company’s shareholders.

'via Blog this'

Related articles

• Ralph Whitworth Wants PMC-Sierra to Get Big or Sell Out (blogs.wsj.com)
• PMC-Sierra shares fall almost 11% (marketwatch.com)

Taconic Buys 5.14% of CA

CA Inc has been the subject of buyout rumors for years. And while nothing has ever materialized, we could see some sort of activity in the coming months.

Yesterday, Taconic Capital Advisors disclosed a 5.14% stake in CA. Below is some of the language found in the filing:

The Reporting Persons believe the Company’s management and board of directors could immediately implement actions that would result in a significant increase in the value of its common stock including: (i) increasing the amount of cash returned to shareholders, (ii) implementing an efficient capital structure and (iii) elevating profit margins in its Enterprise Solutions business segment to appropriate levels. The Reporting Persons recognize management’s recent efforts to begin addressing these issues but they emphasize the importance of taking substantial and timely action in pursuit of these objectives. Additionally, in order to align appropriately management and shareholder incentives, the Reporting Persons believe the Company’s board of directors should implement a senior management compensation structure that is based primarily on total shareholder returns rather than the current structure’s emphasis on absolute growth metrics.

The Reporting Persons have had and intend to continue to have discussions with the Company’s management and the board of directors relating to, among other things, the Company’s business strategy, operations, capital allocation and management compensation structure. In addition, the Reporting Persons and their representatives and advisers may communicate with other shareholders, industry participants and other interested parties concerning the Company.

Date		Purchase/Sale		Number of Shares		Price per Share
1/6/12		Purchase		50,000		$20.5451
1/6/12		Purchase		100,000		$20.5920
1/9/12		Purchase		200,000		$20.6578
1/10/12		Purchase		150,000		$20.9647
1/10/12		Purchase		150,000		$20.9519

Related articles

• Shareholder Activism - Year in Review (activist-investor.com)

Icahn Responds to Oshkosh

Carl Icahn today issued the following open letter to shareholders of Oshkosh
Corporation:

                                 Carl C. Icahn

                                                         January 11, 2012
Dear Fellow Oshkosh Shareholders:

     On January 9, 2012 Oshkosh put out an investor presentation indicating that
I  have  a  "mixed"  track  record  of  delivering  value to shareholders. In my
opinion,  this  presentation  is  a  complete  misstatement  of  the facts and a
transparent  attempt to divert attention away from the real issues in this proxy
contest.

     I  believe  my  investment  track  record  speaks for itself and have never
thought  it  needed  to  be  defended  in a public proxy contest. However, since
Oshkosh  chose  to bring up my record, I will make the following brief comments.

     Oshkosh  conjured  up  a  list  of  subject  companies  that they purported
measured  my  track  record.  Much  of  the information they present is not only
inaccurate  but  they  fail  to include on their list many of my most successful
investments,  such  as  ImClone, Biogen, Genzyme, Motorola Mobility, Kerr-McGee,
BEA  Systems,  Medimmune,  Fairmont Hotels and Chesapeake Energy, to name only a
few.

     Over  the last five years, my investment funds have achieved a gross return
of  nearly  50%,  compared  to a negative 1.2% return in that period for the S&P
500.  Meanwhile,  over  the  last  five  years, the Oshkosh board has overseen a
decline  in  the  Oshkosh  share  price of more than 55% and a loss of over $4.3
billion  of  total enterprise value, despite landing a lucrative M-ATV contract,
which  is  now  at  the  end  of  its production cycle. In addition, in 2011, my
investment funds were up 35%, or approximately $1.9 billion, which is nearly the
entire  market capitalization of Oshkosh, while the Oshkosh share price declined
nearly  40%  and  performed  worse  than  all 16 companies they mention in their
presentation  as  their  peers.  But  perhaps  more  importantly,  much  of  our
investment  record is due to the fact that we had a minority position on many of
the  boards of the companies in which we were invested. Examples of these, among
others,  are  Biogen, Genzyme, Motorola, Yahoo, Mentor Graphics, Hain Celestial,
and  Take-Two.  As  minority  representatives on these boards, we fought for and
helped  to  expedite positive changes which enhanced value for all shareholders.

     I hope you, the Oshkosh shareholders, will give my nominees the opportunity
to  achieve  the  same  results  for Oshkosh that my various nominees and I have
produced  at  the  companies  mentioned  above.

Related articles

• Oshkosh execs blast Icahn in shareholder letter (marketwatch.com)
• Icahn Walks Away From Commercial Metals (thestreet.com)

Becker Drapkin is making demands

Below is a copy of the demand letter that Becker Drapkin sent to Pixelworks. As previously reported, Becker Drapkin has bought a significant share of Pixelworks and is clearly prepared to shake things up.

Becker Drapkin Demand Letter

Icahn's Case Against Oshkosh

With all the other activist activity today, this one seemed to slip through the cracks. Below is Carl Icahn's case against Oshkosh's current management:

Icahn Presentation to Shareholders of Oshkosh

Related articles

• Icahn's January Plays Could Ruin His 2012 Plans (thestreet.com)