Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, August 24, 2018

Article Excerpt

SYMANTEC CORP., $19.76, symbol SYMC on Nasdaq, makes software that helps protect computers from viruses and electronic attacks. Its best-known products are the top-selling Norton Anti-Virus program and LifeLock, a software program that protects against identity theft. Activist investor Starboard Value has now acquired a 5.8% stake in Symantec. Starboard has also sent a letter to Symantec nominating five of its own directors to its board. One of the nominees is Dale Fuller, who served on the board of directors of AVG Technologies, one of Symantec’s competitors, between March 2009 and October 2016. Starboard wants operational changes at Symantec to improve profit margins. The activist believes directors like Fuller will be able to assist in improving operations, plus help with any issues that arise from the company’s ongoing internal accounting probe. Meanwhile, Symantec’s underlying business remains strong, and the stock is attractive at just 12.7 times its forecast earnings for 2018. The $0.30 dividend yields 1.5%. OUR RECOMMENDATION: Symantec is a buy.   MACK-CALI REALTY CORP.,…