Why You Should Pay Attention to Nierenberg Investment Management’s Latest Purchase

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Nierenberg Investment Management’s second top pick was in C&J Energy Services Inc (NYSE:CJES), in which the fund holds 1.36 million shares worth $15.19 million, having held the position for over three years now. There haven’t been any insider transactions since the end of the first quarter of 2015 in the company, which has returned 13% year-to-date. The performance is the beginning of a rebound from a poor 2015, in which its shares tumbled by over 50%, due to the weakening oil market. C&J Energy Services Inc (NYSE:CJES) provides well completion and stimulation services.

Nierenberg Investment Management’s third pick, in Rosetta Stone Inc (NYSE:RST), has had four insider sales since the end of the first quarter. The first big insider transaction came from Interim President & CEO, John A Hass who sold 2,996 shares for $23,581 in two separate transactions. The second transaction was from CFO Thomas M Pierno who sold 1,393 shares for $10,211. The last transaction was from Principal Accounting Officer Sean M. Hartford who cashed in on $3,303 worth of shares, 429 in all.

Rosetta Stone Inc (NYSE:RST) is under pressure from activist investor John Lewis of Osmium Partners. In a letter dated June 8, the company was advised by the fund to not sell itself for a price less than $350 million. Osmium Partners is the second-largest shareholder with 1.97 million shares worth $14.99 million. The fund is of the view that the company should not accept any offer less than $16 per share, which is a 101% premium to Rosetta Stone’s closing price on June 5. Earlier, New York based RDG Capital had shown interest in the company. The letter also mentions other possible suitors like Houghton Mifflin Harcourt Co. (NASDAQ:HMHC), Pearson PLC (ADR) (NYSE:PSO), and Walt Disney Co. (NYSE:DIS). Nierenberg owns 1.51 million shares of the company valued at $11.52 million as of March 31.

Disclosure: None

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