December's Activist Investments - 68 Companies Targeted

Below is a summary list of investments made by shareholder activists during December. This information was extracted from Hedge Fund Solutions' Catalyst Equity Research Report (TM), a free in-depth weekly research on activist investments.

Subscribe to the free report here.

Ticker	Company Name	Activist Investor
ACLS	Axcelis Technologies Inc	Sterling Capital
AEPI	AEP Industries	KSA Capital
ARS	Arris Group	Shamrock Activist Value fund
ATML	Atmel Corp.	Microchip Technology
AVGN	Avigen Inc	Biotechnology Value Fund
BCSB	BCSB Bancorp	Financial Edge Fund
BIOD	Biodel Inc	Moab Partners
CAMD	California Micro Devices Corp	Dialectic Capital Management
CKEC	Carmike Cinemas	Mark Cuban
CPWM	Cost Plus	Stephens Investment Management
CXX	CombinatoRX, Incorporated	Biotechnology Value Fund
CTO	Consolidated Tomoka Land Co	Wintergreen Advisers
DANKY	Danka Business Systems PLC	DCML LLC
DDS	Dillard's Inc.	Barington Capital; Clinton Group
DIN	DineEquity Inc	Southeastern Asset Management
DPS	Dr Pepper Snapple Group	Trian Fund
DUSA	DUSA Pharmaceuticals	SRB Management
DVD	Dover Motorsports	GAMCO
ESIO	Electro Scientific Industries	Nieremberg Investment Management
FIC	Fair Isaac Corp	Sandell Asset Management
FSFG	First Savings Financial Group	Joseph Stilwell
GGP	General Growth Properties	Pershing Square Capital
GLOB.OB	Global Med Technologies	Victory Park Capital
HIFN	Hifn, Inc	Adaptec, Inc
ICGN	ICAgen, Inc	Xmark Opportuntiy Partners
INFS	InFocus Corp	Nery Capital Partners
ITP	Intertape Polymer Group	KSA Capital Management
JAVA	Sun Microsystems	Southeastern Asset Management
JTX	Jackson Hewitt Tax Service	Shamrock
KANA.OB	Kana Software	KVO Capital Management
KFS	Kingsway Financial Services	Joseph Stilwell
KONA	Kona Grill	Mill Road Capital
LAQ	The Latin America Equity Fund	City of London Investment Management Co
LCAV	LCA-Vision Inc.	Stephen Joffe
MAG	Magnetek Inc	Riley Investment Management
MATH.PK	Mathstar, Inc	Salvatore Muoio; Zannet Opportunity Fund
MGAM	Multimedia Games	Dolphin Limited Partnership
MGLN	Magellan Health Services	Shamrock
MOVE	Move Inc.	Nierenberg Investmetn Management
MVCO	Meadow Valley Corp	Carpe Diem Capital
NDD	Neuberger Berman Dividend Advantage Fund	Western Investment
NTMD	Nitromed Inc	Deerfield Capital
OFIX	Orthofix International	Ramius Capital;
OPTV	OpenTV Corp.	Discovery Equity Partners
ORNG	Orange 21	Costa Brava Partnership
PHMD	PhotoMedex, Inc.	James Sight
PIF	Insured Municipal Income Fund	Bulldog Investors
PPCO	PenWest Pharmaceuticals	Perceptive Advisors
PRXI	Premier Exhibitions, Inc	Sellers Capital
RDC	Rowan Companies	Steel Partners
RHIE	RHI Entertainment	Baupost Group
RIVR	River Valley Bancorp	Davee Thomas
SLRY	Salary.com	Cannell Capital
SLTC	Selectica, Inc	Versata
SUG	Southern Union Co	Sandell Asset Management
SUTM.OB	Sun-Times Media Group Inc.	K Capital
TIER	Tier Technologies Inc	Discovery Equity Partners
TLGD	Tollgrade Communications Inc	Bradford Capital
TMI	TM Entertainment & Media	Bulldog Investors
TRGL	Toreador Resources	Nanes Delorme Partners
TRMA	Trico Marine	Kistefos AS
TXCC	TranSwitch Corp	Brener International Group
TXI	Texas Industries	Southeastern Asset Management
WBSN	Websense Inc	Shamrock
WEDC	White Electronic Designs Corp	Wynnefield Capital
WOC	Wilshire Enterprises	Bulldog Investors
WRLS	Telular Corp	Simcoe Partners

Selectica Inc. Pulls Trigger on Poison Pill

Selectica Inc. SLTC issued a press release on Saturday evening announcing that a Special Committee of the Board has ordered the exchange of each outstanding right under its Rights Agreement (aka the "Poison Pill"), as in effect as of the close of business on January 2, 2009, for one share of the Company’s common stock. Click here for the press release.

The exchange will double the number of shares of Selectica common stock owned by each stockholder of record as of the close of business on January 2, 2009, other than Versata Enterprises Inc., a subsidiary of Trilogy, Inc who has been accumulating stock above the Pill level.

Background
Activist investor Steel Partners owns 12.5% of SLTC.

On November 14th Versata Enterprises, a subsidiary of Trilogy, Inc., acquired 5.1% of the Company and made a verbal proposal to acquire the Company. (The details of the proposal have not yet been made public)

Reducing the Pill
On November 17th SLTC reduced the trigger on their poison pill from 15% to 4.99% purportedly to protect the value of their tax loss carry-forward benefits. (As of March 31st 2008 SLTC had federal and state net operating loss tax carry-forward assets equivalent to approximately $250M)

Ignoring the Pill
On December 18th and 19th Versata purchased an additional 154,051 shares of SLTC’s stock, bringing their ownership to 6.7%.

Triggering the Pill
On December 22nd Versata received a complaint (Selectica, Inc. vs. Versata Enterprises, Inc. and Trilogy, Inc., filed in the Court of Chancery of the State of Delaware on December 21, 2008) from Selectica seeking a declaratory judgment as to the validity of the Rights Agreement.

Selectica is currently trading around $0.88/share. As of October 31st 2008 the Company had $1.06/share in cash and short term investments.

Posted by Damien Park, Hedge Fund Solutions

Phil Goldstein on Activist Investing

This video is taken from the Deal's M&A Outlook 2009 conference where Phillip Goldstein, a principal at the activist hedge fund Bulldog Investors, recently spoke about corporate boards and activist investors. If you are having trouble viewing the video below, click here.

Real Time Activist Investment Updates on RealMoney.com

Damien Park, The CEO of Hedge Fund Solutions - the administrator for this blog, is providing current market commentary on activist investments for RealMoney.com.

Park, who will focus exclusively on activist investments, will join 45 of Wall Street's best investment professionals that provide RealMoney subscribers with a running commentary on actionable investment ideas throughout each trading day.

RealMoney, the paid subscription service for TheStreet.com, provides insights, analysis and detailed investment recommendations from top investment professionals, all in real time.

10 Reasons Why 2009 Will Bring More Activism

Eric Jackson (one of our Activist Blog & Tacklers) recently wrote an article for TheStreet.com titled "Why 2009 Will Bring More Activism". Here are the 10 reasons he gives. Read the whole article on TheStreet.com or go to Eric's blog.

1. Obama will look favorably on pro-shareholder measures.
2. The new SEC chair will sponsor several new shareholder-friendly measures.
3. Valuations are on the floor.
4. A flight to quality in hedge funds will benefit activist investors.
5. Management and corporate boards will not want to be viewed as anti-shareholder.
6. There will be a wave of industry consolidation.
7. Activists have the longest lock-up periods of any hedge fund class, so they can put fresh capital to work.
8. Limits on short-selling will benefit activists.
9. Activists will become more blanaced on the long and short sides.
10. There's more to get "active" about than ever.

Shareholder Activism Insight

Marc Weingarten and David Rosewater from Schulte Roth & Zabel, a couple of the better legal minds working with activist investors (and some companies too), recently issued an interesting report titled “Shareholder Activism Insight”. Click here to get the full report.

The report highlights current trends in activist investing and provides an outlook for activist investing in the year ahead.

SRZ commissioned mergermarket to interview 25 senior corporate executives and 25 activist investors regarding their thoughts. Here are a few highlights:

• 56% of overall respondents expect to see an increase in shareholder activism over the next 12 months.
• 48% of corporate respondents view activist shareholders as short-term market opportunists.
• 48% of activists believe corporate boards are passive rather than proactive when it comes to maximizing shareholder value.
• 48% of activists were passive investors for a year or more before turning active.
• 67% of corporate respondents believe the best defensive strategy a company can use against activism is maintaining an active dialogue with its shareholders.

Posted by Damien Park, Hedge Fund Solutions

November's Activist Investments - 75+ Companies Targeted

Below is a summary list of investments made by shareholder activists during November. This information was extracted from Hedge Fund Solutions' Catalyst Equity Research Report(TM), a free in-depth weekly research report on activist investments.

To receive the FREE report subscribe here.

Ticker	Company	Activist Investor
ABTL	Autobytel Inc	Trilogy Inc
ACF	AmeriCredit Corp	Fairholme Capital Management
ACTL	Actel Corp	Ramius Capital
ADPT	Adaptec, Inc	Steel Partners
ARCW	Arc Wireless Solutions	Brean Murray Carret Group
ATSG	Air Transport Services Group	Perella Weinberg Partners
AVGN	Avigen Inc	Biotechnology Value Fund
BBI	Blockbuster Inc	Marlin Sams Fund
BEE	Strategic Hotels & Resorts	Security Capital Research & Management
BITI	Bio-Imaging Technologies	Healthinvest Partners
CHG	CH Energy Group Inc	Gamco Investors
CHIC	Charlotte Russe Holding Inc	KarpReilly Capital Management
CPN	Calpine Corp	Harbinger Capital
CRXX	CombinatoRX, Incorporated	Biotechnology Value Fund
CTO	Consolidated Tomoka Land Co	Wintergreen Advisers
CWLZ	Cowlitz Bancorporation	Crescent Capital
DBD	Diebold Inc	Gamco Investors
DCAP	DCAP Group	Infinity Capital Partners
DVD	Dover Motorsports	Mario Cibelli
ENTU	Entrust Inc.	Empire Capital Partners
FACE	Physicians Formula Holdings, Inc	Mill Road Capital
FSCI	Fisher Communications	Gamco Investors
FTAR.OB	Footstar Inc	Schultze Asset Management
GBE	Grubb & Ellis Company	Anthony Thompson
GGP	General Growth Properties	Pershing Square Capital
GSLA	GS Financial Corp	FJ Capital Long/Short Equity Fund
HCBK	Hudson City Bancorp	Gamco Investors
HFFC	HF Financial Corp	PL Capital
INFS	Infocus Corp	Nery Capital Partners
INFS	Infocus Corp	Lloyd Miller
ISH	International Shipholding Corp	Liberty Shipping Group
KANA.OB	Kana Software	KVO Capital Management
KEYN	Keynote Systems	Ramius Capital
KFS	Kingsway Financial Services	Joseph Stilwell
KONA	Kona Grill	Mill Road Capital
LCAV	LCA-Vision Inc	Stephen Joffe
LDIS	Leadis Technology Inc	Kettle Hill Capital Management
LNET	LodgeNet Interactive Corporation	Mark Cuban
LTM	Life Time Fitness	Green Equity Investors
MCGC	MCG Capital Corporation	Springbok Capital Management
MGAM	Multimedia Games Inc.	Dolphin Limited Partnership
MGI	Moneygram Interntaional Inc	Blum Capital
MIM	MI Developments	Greenlight Capital
MYE	Myers Industries Inc	Gamco Investors
NAV	Navistar International	Owl Creek
NLS	Nautilus Inc	Sherborne Investors
NOOF	New Frontier Media	Steel Partners
NYT	New York Times	Harbinger Capital
OEH	Orient-Express Hotels	SAC Capital; DE Shaw
ORNG	Orange 21	Costa Brava
PBIP	Prudential Bancorp Inc. of PA	Joseph Stilwell
PGRI.OB	Platinum Energy Resources Inc	Syd Ghermezian
PHH	PHH Corp.	Pennant Capital Management
PNNW	Pennichuck Corp	Gamco Investors
PPCO	Penwest Pharmaceuticals Co	Perceptive Advisors
PRXI	Premier Exhibitions, Inc	Sellers Capital
PWER	Power One	Bel Fuse
PXG	Phoenix Footwear Group	Reidman Corp
RDEN	Elizabeth Arden	Shamrock Activist Value Fund
SCOP	Scopus Video Networks Ltd.	Optibase Ltd
SECX.PK	SED International Holdings	Hummingbird Management
SLTC	Selectica Inc	Trilogy Inc (Versata Enterprises)
SNG	Canadian Superior Energy	Palo Alto Investors
SNSTA	Sonesta International Hotels	Gamco
SUAI	Specialty Underwriters Alliance	Philip Stephenson
SUMT	SumTotal Systems	Discovery Capital
SUTM.OB	Sun-Times Media Group Inc.	K Capital
SUTM.OB	Sun-Times Media Group Inc.	Davidson Kempner Partners
SWWI	Simon Worldwide Inc	Everst Special Situations Fund
TIKRF.OB	Tikcro Technologies Ltd	Steven Bronson
TXCC	TranSwitch Corp	Brener International Group
TXI	Texas Industries	Shamrock Activist Value Fund
UIS	Unisys Corp	MMI Investments
UTEK	Ultratech Inc	Temujin Fund
WBSN	Websense Inc	Shamrock Activist Value Fund
WEDC	White Electronic Designs	Wynnefield Capital
WINS	SM&A	Mill Road Capital
YHOO	Yahoo	Carl Icahn
ZLC	Zale Corp.	Breeden Capital Management