Q: Engine Capital bought into PKI and did wonders for the stock price Now they bought a 5.3% holding in DND. What do you think of the transaction? Can I hope for similiar results to PKI?
5i Research Answer:
DND we think is a company in need of some guidance to management. In the past few years it has floated the idea of going private (at much higher levels) and then started issuing stock at much lower levels even after doing stock buybacks at higher levels. It ramped up debt and then said it had too much debt. It has annoyed customers and regulators with pricing moves. If we were shareholders we would welcome Engine's moves as a 'kick in the butt' to the company so it can start acting properly in the interests of shareholders.