Okumus Fund Management Trims Its Stake In Web.com Group Inc. (WWWW), While Wynnefield Capital Still Believes In Global Power Equipment Group Inc. (GLPW)’s Turnaround

Global Power Equipment Group Inc. (NYSE:GLPW) represents a relatively new position for Wynnefield Capital, which was initiated just a few weeks ago (see more details). Global Power is a leading provider of custom-engineered auxiliary equipment and maintenance support services for the global power generation industry. It’s commonly known that the energy demand has been constantly increasing all around the world lately, which in turn leads to higher demand for power generation products and services. However, it seems that the increasing energy demand is not reflected at all in the share price of Global Power, as the stock has dropped by over 48% since the beginning of this year. On May 7, the company announced that it would delay to report its first quarter financial results and that it would restate its results for the last fiscal year due to accounting errors discovered by the Audit Committee, which immediately resulted in a 33% drop in the company’s share price by the end of the trading session on that day. Furthermore, a massive number of law firms have initiated lawsuits against Global Power in relation to these accounting errors, which might actually result in huge costs for the company. However, as soon as all these accounting issues and lawsuits are resolved, is highly probable that the stock will achieve a turnaround. The hedge fund Royce & Associates, managed by Chuck Royce, is the largest shareholder in Global Power Equipment Group Inc. (NYSE:GLPW) within our database, owning an ownership stake of 1.98 million shares.

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