High above the Alps my Gnome continues to hear activism talk on $TWTR. I believe this one from my little Gnome and have been adding.
Mr. Kass is the President of Seabreeze Parnters Management Inc, and has been in the hedge fund business a long time. Until 1996, Kass was a senior portfolio manager at the billion dollar investment partnership Omega Advisors. By virtue of his experience, Kass has many hedge fund/activist friends.
Given Facebook and Snap’s rally and Twitter Inc (NYSE:TWTR)’s own slide into the $14-$15 range, it isn’t surprising that some investors have become rather anxious to see an uptick in either the stock or the social media company’s fundamentals. Although there is no guarantee that an activist will appear, an activist could have multiple avenues at lifting Twitter’s share price, including asking for more cost cuts, or asking Twitter to sell some assets. As has been the case before, rumors about a potential activist could just be rumors and not facts, however, and Twitter’s stock could remain dependent on sentiment and management’s execution.
What Does The Smart Money Sentiment Say?
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According to our data, the smart money was slightly less bullish on Twitter in the fourth quarter. Of the 742 top funds we track, 41 were long shares of Twitter Inc (NYSE:TWTR) at the end of the fourth quarter, down 6 funds from the previous quarter. James Dondero‘s Highland Capital Management went the opposite way of the crowd and raised its stake by 46% to over 6.1 million shares.
The Bottom Line
More traders are watching Twitter Inc (NYSE:TWTR) due to Doug Kass’ comments and the stock could bounce if an activist appears.