Activist investors can often point to undervalued companies that need to make a few major changes in order to unlock tremendous value.
That’s why the recent purchase by activist investor Nelson Peltz is attracting attention. The latest undervalued find is a company in the media space that also has some legacy operations. Any transformation there that improves profitability could score a huge win for shareholders.
The company? Comcast (CMCSA). Owner of a cable network, over the past decade the company has transformed with the acquisition of properties such as NBCUniversal to become a content giant as well. Peltz has taken a 0.4 percent stake, which could quickly be scaled up into a big enough size to clamor for board seats as well.
- Crash Warning: Everything just changed
After 18 months of near vertical gains…the greatest bull run in history is starting to falter. And while some experts are urging investors to "buy the dip"…others are warning that the worst crash in financial history is straight ahead. Who's right…who's wrong? And more importantly, what should you do with your money right now to get ready?
The answer could save you potentially hundreds of thousands of dollars in the coming weeks.
Make no mistake, a major market shift is already underway... and this is the exact day it's going to hit U.S. stocks.
The opportunity here is a bit reminiscent of that in AT&T (T), the telephone giant that has also expanded into the entertainment space in recent years with a series of acquisitions. The company is better noted for its high dividend yield.
Action to take: Investors should consider buying AT&T for its dividend, and buying call options on Comcast for a move higher should Peltz convince the company to do something to raise the share price. The January 2021 $50 calls, trading for around $1.30, look attractive for a potential jump higher.