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Stock Market & Financial Investment News

News Breaks
December 20, 2013
17:32 EDTHOLXRelational Investors reports 7.3% stake in Hologic, will continue talks
Relational believes the company trades at a discount to fair value. Relational attributes this discount to subpar operational execution and a history of deploying capital to over-priced acquisitions. These acquisitions have burdened the company with excessive leverage and pushed the company’s return on invested capital below its cost of capital. Driving this acquisition strategy was a short-term executive compensation program focused on revenue and EPS targets, without regard to investment returns, as well as a long-term executive compensation program that did not include performance targets. Relational began accumulating shares of the company in August. Beginning in September, Relational has presented its views to the company on the issues outlined above and emphasized that the company should use its discretionary cash flows to normalize debt levels and accelerate debt reduction with selected divestitures. Relational also stressed that the company should adopt a disciplined capital allocation program designed to avoid future dilutive acquisitions. Relational commends the company for announcing a strategic review and adopting Relationals’ capital allocation recommendations on the company’s fourth quarter earnings call held November 11th. Relational is further encouraged by recent management changes and the addition of shareholder representatives to the Board of Directors. Management should continue to regularly communicate and report on its stated plan to pay down debt and return cash to shareholders. Relational intends to monitor the company’s adherence to this strategic plan and capital allocation disciplines. Relational and their representatives and advisers intend to continue from time to time to discuss the company and its performance with members of the company’s board and management. Relational may in the future decide to seek representation on the company’s board of directors.
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April 17, 2014
16:31 EDTHOLXFDA alert on laparoscopic morcellation mixed for Hologic, says Piper Jaffray
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