William Martin’s Raging Capital Trims Activist Position in Struggling Company

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However, if expectations were that the company could reverse its misfortunes following the merger, those expectations have yet to pan out. The stock slowly drifted back under the $3 mark over the next few months, and last week took another drubbing on unflattering financial results, which sent it below the $2 mark on January 28. Raging Capital sold 126,295 of their shares the next day, for just $1.99, showing that they too were clearly unimpressed with the results. The stock has since tumbled to a record low of just $1.24 in the days since, giving Standard Register a market cap of just $13.14 million.

Standard Register Co (NYSE:SR) has hired advisors to help the company go through a financial makeover, while the possibility of the company being sold is now a very real one as well. Standard Register is suffering from debt service requirements, pension obligations, and weak financial results that have left it in a very vulnerable position, and likely in need of debt restructuring and possibly liquidation of some of their assets to avoid bankruptcy.

Needless to say, things do not look very good for Standard Register Co (NYSE:SR), and even their once stalwart champion in Raging Capital appears to be giving up on them, which is a good indicator that a miracle does not seem likely, and buying in even at these low prices is likely foolhardy.

Few of our tracked hedge funds here on Insider Monkey have shown much interest in Standard Register over the years, but they did have one other major investor from among their ranks in the form of Edward A. Mule’s Silver Point Capital, which holds 1.65 million shares. Jeffrey Gendell’s Tontine Asset Management, and Phil Frohlich’s Prescott Group Capital Management each had small stakes of 182,610 and 108,741 shares respectively, as of September 30.

Disclosure: None

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