Activist buys into Mentor

Article Excerpt

MENTOR GRAPHICS $28.69 (Nasdaq symbol MENT; TSINetwork Rating: Extra Risk) (503-685-7000; www.mentor.com; Shares ooutstanding: 108.2 million; Market cap: $3.1 billion; Dividend yield: 0.9%) makes systems that improve the design of electronic products and speed up their development. Businesses in a wide range of industries use those systems. The stock has moved up over 16% since late September 2016. That’s up over 7% since prominent activist investor Elliott Management Corp. disclosed that it has doubled its stake in the company to 8.1%. Elliott, founded by hedge-fund manager Paul Singer in 1977, believes that Mentor’s shares are deeply undervalued. It wants the company to boost shareholder value by “enhancing operational efficiency and revenue quality, as well as strategic opportunities.” Whatever the outcome, Elliott’s involvement should draw attention to Mentor’s longterm growth prospects. Mentor Graphics is still a buy. buy…