4 Energy Stocks on Activist Investors’ Hit Lists

Activism by hedge funds and other institutional investors isn't always a good thing, but it can spark profitable change

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4 Energy Stocks on Activist Investors’ Hit Lists

Energy Stocks on Activist Investors’ Hit Lists: Cameron International (CAM)

CameronInternational185 4 Energy Stocks on Activist Investors' Hit ListsIt’s not just energy stocks in the E&P sector that are seeing rising activist interest. The oil services players are getting the nod as well.

And that includes industry stalwart Cameron International (CAM).

CAM is one of the largest makers of subsea equipment, and that market is booming as energy firm’s dive deeper to exact hydrocarbons. However, sales of its other well completion products haven’t been up to snuff as of late. That caused a significant decline (15%) in Q3 profits, as well as a pair of earnings misses across the past four quarters.

To that end, Jana Partners initiated a huge position in the firm and has been pressing for noncore asset sales.

So far, CAM has bowed to pressure, dumping product lines and facilities that don’t meet with its core business of subsea equipment. That included selling its natural gas gathering and processing equipment business to General Electric (GE) for around $550 million. Cameron also recently boosted its buyback program.

Given that Cameron’s issues were “self-inflicted, temporary and remediable,” Jana’s meddling in the shares could result in streamlined and outperforming oil service stock going forward.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/activist-investors-energy-stocks/.

©2014 InvestorPlace Media, LLC

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