JCP Investment Management recently filed an amended 13D with the SEC concerning Casella Waste Systems Inc. (NASDAQ:CWST). The investment firm, based in Houston, Texas, disclosed ownership of 5.4% of Casella’s outstanding stock, amounting to just under 2.11 million shares. That represents an increase from the 1.98 million shares reported in a 13D filing one month ago. Along with the filing JCP included an open letter sent to Casella’s board of directors. Among other things, JCP mentioned its desire to have three candidates elected to the company’s board. We believe if JCP succeeds in its activist campaign, Casella shares will outperform the broader indices.
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JCP has invested in Casella Waste Systems Inc. (NASDAQ:CWST) since March of 2010. The firm is managed by James Pappas, who has steadily built his reputation as an activist shareholder. Recently he worked with Glenn Welling‘s Engaged Capital on a campaign involving Jamba Inc. (NASDAQ:JMBA) which resulted in both Pappas and Welling being elected to that company’s Board of Directors.
Pappas is also one of JCP’s current nominees for Casella’s Board, along with Brett Frazier and Joseph Swinbank. JCP claims a shake-up of Casella’s Board is needed. It is frustrated with the “chronic underperformance” and the “unwillingness” of the current board to enhance shareholder value. The fund claims multiple potential strategic acquirers have already contacted it expressing interest in Casella, and JCP wants Casella to hire an investment bank to explore these strategic alternatives.