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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: richardred who wrote (5970)8/31/2020 9:54:28 AM
From: richardred
   of 6545
 
Ionis Pharmaceuticals to Acquire Remaining Stake in Akcea Therapeutics For $18.15 Per Share in Cash
BY MT Newswires
— 7:22 AM ET 08/31/2020

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To: richardred who wrote (5550)9/2/2020 11:37:40 AM
From: richardred
   of 6545
 
CTG staffing competitor- Announcing Small staffing acquisition.

Stock Alert: TSR Jumps 15%

PUBLISHED
SEP 2, 2020 10:12AM EDT

nasdaq.com

Message #5550 from richardred at 9/24/2019 1:21:40 PM

CTG:Speculation - Picked up some shares today. FWIW-IMO ASGN still a nice hypothetical fit. Highlighted Oldies points are listed , but IMO still relevant. Small competitors seem to be struggling RE: STAF/TSRI/RCMT. ASTN also had a down qtr, but has a stellar balance sheet. This is where the economies of scale through a hypothetical acquisition would come into play. You have a pusher like AGS trying to put the company in play for a low ball offer. This low ball offer has been tried before when the company's prospects were poor. IMO the prospects are much better now. IBM (Important CTG Customer)big into AI with Watson in healthcare. Looking to see if AGS files a 13d. I very much doubt they have the money to put up, but will they be shut up?

US IT staffing 2018/2019: Stocks out like a lamb; revenue growth in like a lion March 5, 2019

The US equity markets briefly entered bear market territory in late 2018. The turbulence dragged down stock prices across numerous sectors, including staffing. As you can see in the chart below, the correction was quite harsh to this subset of staffing firms when comparing the low price point of the year with the high that occurred earlier.

Click on chart to enlarge.



Sources: Yahoo! Finance and SIA

This group of US-based staffing companies represents those where we can isolate temporary IT staffing revenue growth. Despite the fact that stock prices got caught in a storm of selling pressure in Q4, the group of staffing firms managed to outperform the broader S&P 500 index in 2018 (up 2.4% group average versus down 6.6%). In fact, the recent round of Q4 earnings reports showed that 2018 proved to be an impressive year in terms of IT staffing revenue growth among these companies. As detailed below, this group’s aggregate 2018 temporary IT staffing revenue growth was approximately 10.7% year over year and almost entirely organic.

www2.staffingindustry.com

Oldie post with bold type underlying recent thoughts.

To: Paul Senior who wrote (4218)8/4/2016 9:14:40 AM
From: richardred Read Replies (1) of 5548

I'm hanging on to my shares with possible adds. I actually thought 8 cent for the quarter wasn't to bad. It is a top ten portfolio holding for me. IMO still high as a Takeover target. Competitors, big and small in the group are also undergoing tough times. IMO In market and economic conditions were currently undergoing. In general, I've noticed many weaker companies are being consolidated for economies of scale, margins, and efficiency. This company has a new CEO who has been there 25 years. IBM & Levano are still important customers. IBM recently bought Truven Health Analytics for 2.6 Billion for it's Watson Health unit. Any more IBM acquisitions in this field IMO could have a positive impact. It might take awhile for a turnaround so the company will be vulnerable to a reasonable hypothetical offer. I'm guessing you might have seen an IBM Watson commercial? Xerox's spin-off of Conduent is also trying to compete in this field. I saw Conduent was recently mentioned as a target itself. The company put it's corporate headquarter are up for sale at 3 times book value (over 3 mill). If completed should be a one time gain as an extraordinary item. Divided payout to earnings level level exceeds past historical levels due to poor earnings. I'm just guessing it will be maintained as the headquarters are for sale.
RE- Conduit
@Tavi59 @DandC The last Classic name Change for #Xerox once a #Rochester great. pic.twitter.com/9nqiDV0vs7

— Richard - richardred (@rreding1) June 16, 2016

I've posted an article of the Buffalo News you might find interesting.

New CEO of Computer Task Group confident he can reverse company’s plunge

By David Robinson | News Business Columnist
on July 31, 2016 - 12:01 AM



Bud Crumlish has his work cut out for him.

Crumlish, who has spent the past 25 years at Computer Task Group, is taking over as the Buffalo information technology company’s president and CEO at one of its darkest times in the past decade.

CTG’s profits are plunging. Its sales are on pace to decline for the fourth straight year. Its stock is at a six-year low.

And Crumlish’s predecessor as CEO, former Dell executive Cliff Bleustein, lasted just 16 months on the job before he “resigned by mutual agreement” with CTG’s board of directors.

In other words, Bleustein was shown the door by CTG’s board, pocketing a $1 million severance package on his way out.

Oh, and Bleustein came to CTG only because James R. Boldt, the company’s CEO for 13 years, died unexpectedly on Columbus Day in 2014.

Amid that tidal wave of misfortune, Crumlish, is charged with trying to pull CTG out of its tailspin.

Crumlish, who has run CTG’s biggest business unit – its staffing segment – for the previous 15 years, thinks the company has what it takes to turn around. In an interview, Crumlish said he’s comfortable with CTG’s general strategy under Bleustein, which put more focus on its staffing business that provides information technology services and personnel to companies.

He still sees opportunity in the health care sector, which fueled CTG’s rapid growth from 2009 to 2012 as hospitals scrambled to install expensive electronic medical records systems under pressure from the federal government.

But as hospitals started feeling the squeeze from lower federal insurance reimbursements, they lost interest in expensive technology upgrades and CTG’s electronic medical records work dried up, leaving a gaping hole in its revenue base. Boldt couldn’t plug the gap before he died, and Bleustein didn’t have any luck, either. In fact, CTG’s slide has accelerated this year, likely contributing to his departure.

“I’ve seen this company enjoy many good times and also weather a few tougher periods, like that which we’re experiencing today,” Crumlish told analysts during a conference call last week. “It takes hard work and resourcefulness to get through the difficult periods.”

Crumlish, for now, isn’t promising any major changes. He said he wants to take the next month or two to review CTG’s strategy. But by and large, Crumlish thinks CTG’s problem isn’t that it’s following the wrong strategy. The issue is how the company is doing at carrying it out.

“There’s not a whole lot of change in the strategy,” Crumlish said in the interview. “It’s more a matter of execution.”

CTG bolstered its sales staff under Bleustein. It’s pushing to win more work from existing clients. Crumlish wants to build closer ties between its staffing and IT solutions businesses, especially in the health care market.

Crumlish warned that those initiatives will take time to develop. “These things take time to build,” he said. “You start small.”

But small improvements won’t stop CTG’s decline.

• CTG’s sales, which peaked in 2012 at $424 million, have dropped for three straight years and are on a path to decline again this year.

Over the past three years, CTG’s sales have fallen by 13 percent and the company warned last week that it expects sales to drop by another 10 percent this year. If that pans out, it would leave CTG’s sales at roughly the same level they were back in 2010.

• CTG’s profits, which more than doubled to an all-time high by 2012 as the company’s health care business grew rapidly, has suffered an equally precipitous fall as the sector softened.

The company’s profits have tumbled by 60 percent over the past three years and are expected to drop by another 50 percent this year, after excluding write-downs and other one-time expenses. That would leave CTG with its weakest annual profits in 10 years.

• The company’s stock has taken a nasty beating. CTG shares, which traded as high as $25.71 in 2013 as optimism over the health care business peaked, now trades for around $5 a share – a plunge that has wiped out 80 percent of the stock’s value.

• The company’s health care market has slumped badly as cash-strapped hospitals have held off on making investments in expensive technology upgrades, including the electronic medical records projects that were such a bright spot for CTG just four years ago.

The health care market, which accounted for a third of CTG’s revenues in 2012, provided less than a quarter of the company’s revenues last year. That decline has cost CTG a lot of money – $53 million in annual revenue from 2012 to 2015.

And it’s only gotten worse since then. During the second quarter of this year, health care clients provided less than 19 percent of CTG’s shrinking revenues.

• CTG’s staffing business has always been heavily dependent on a handful of big clients. IBM Corp. has long been CTG’s biggest client, accounting for 30 percent of the company’s revenues so far this year.

That’s one of the few bright spots for CTG this year: Its IBM business has actually grown by nearly $3 million during the first half of this year.

But it’s a different story for CTG’s No. 2 client – computer maker Lenovo, which accounted for nearly 10 percent of the company’s revenues during the first half of this year. Its business with CTG has been shrinking, dropping by more than $8 million during the first half, more than offsetting the good news from IBM.

Crumlish thinks the Lenovo work is stabilizing and will start growing again.

He can only hope for the same from the rest of CTG’s business.

buffalonews.com


Oldie acquisition proposal of CTG to push for CTG progress. This industry is cutthroat. The elimination of competition or accretive complementary acquisitions that fit margin expansion is the way moving forward in this industry IMO. Looking at micro cap competitors in comparison. Microcap competitor Staffing 360 has become barely profitable. The recent public stock offering @ 1.65 with a 9 million market cap IMO shows cracks in their acquisition strategy moving forward. TSR seems to be still struggling.

Computer Task Group Responds to Unsolicited Proposal from RCM Technologies, Inc.

Aug 21, 2007



BUFFALO, N.Y., Aug 21, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --

Computer Task Group, Inc. (Nasdaq: CTGX) (CTG) today issued the following statement in response to RCM Technologies, Inc.'s (Nasdaq: RCMT) (RCM) proposal to acquire all of its outstanding common stock for $5.25 per share, with 50% being payable in RCM stock and 50% in cash:

Since June 25, 2007, RCM has made two opportunistic proposals to acquire the Company. Today's announcement by RCM simply reiterates the terms of its July 25, 2007 proposal, which, after careful consideration, the CTG Board of Directors unanimously determined is inadequate and does not reflect the value inherent in CTG or the Company's potential growth opportunities. The CTG Board strongly believes in the Company's ability to successfully execute its strategic plan and provide significant value to its stockholders. With regard to its business, the Company expects to continue to see improvements in staffing demand, and has closed several large solutions projects. In addition, CTG expects to enter into additional solutions contracts, particularly in its healthcare vertical, that the Company believes will contribute to its results in the second half of the year. Given these growth opportunities and the improving mix of higher margin solutions business, the Board and management are confident in its future prospects.


investors.ctg.com

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To: richardred who wrote (5972)9/10/2020 10:09:43 AM
From: richardred
   of 6545
 
AGS who owns 6.4% of CTG looks like they want to cause some trouble again. They never came through with disclosed capital backing for a formal bid. This although they offered 7.00 for the company.

*Assurance Global Services, Wax Asset: To Vote Against Proposal Regarding Approval and Ratification of Computer Task Group Proposed 2020 Equity Award Plan at Upcoming Annual Meeting of Shareholders -- Filingl] DJ REALTIME NEWS 09/09/2020 5:53 PM

CTG-Response

Computer Task Incorporated : CTG Outlines Strategic Initiatives and Commitment to Further Enhancing Shareholder Value





09/10/2020 | 08:05am EDT
Successfully Transforming Business Toward a Solutions-centric Organization

On Track to Position CTG as a Premier Global Solutions Provider

BUFFALO, N.Y., Sept. 10, 2020 (GLOBE NEWSWIRE) -- CTG (NASDAQ: CTG), a leading provider of information technology (IT) solutions and services in North America and Western Europe, today issued the following statement:

For the past several years, the CTG Board and management team have been implementing a plan to transform into a high-margin, solutions-centric business. We have made significant progress in this transformation and our strong performance trends over the past eighteen months are proof that our strategy is working. Despite the unprecedented and challenging global business environment, we delivered strong second quarter results with both revenue and non-GAAP operating profit increasing sequentially. These results are directly attributable to our team's dedication and the disciplined execution of our strategy, and contributed to CTG achieving our highest first half operating margin and non-GAAP earnings per share in six years.

By continuing to shift our portfolio toward higher margin services and solutions, we will enhance the durability of our business model, improve operating leverage and position the Company to capitalize on opportunities for growth and value creation over the long-term.

CTG’s directors are actively engaged in overseeing the Company’s transformation, and challenge the executive management team to deliver on our strategic objectives and create value for stakeholders. The CTG Board brings significant senior leadership experience and expertise in information technology, strategic planning, risk management and other areas relevant to the Company’s strategy and operations. In the last three years the Board has added two new directors who bring fresh perspective, and whose diverse backgrounds add to the Board’s deep bench of talent.

The CTG Board reviews the Company’s pay programs, including those for directors, to ensure they are competitive with our peers and reflect industry best practices. We continue to stand at the forefront of aligning executive and director compensation with performance and total shareholder returns. To that end, the Compensation Committee of the Board, with the support of an independent consulting firm, develops packages that include a significant amount of tailored, performance-based incentives. In January 2018, we eliminated cash compensation for non-employee directors in favor of providing compensation exclusively in CTG shares to directly align the interests of our non-employee directors to those of our shareholders. In addition, in 2017 and 2018 the Board awarded equity-based compensation for senior leadership that included grants and associated vesting solely based upon a 50% and 100% increase in CTG’s share price. In both 2019 and 2020, a significant portion of the equity grants to the leadership team included performance targets that must be met before any vesting will occur.

Based upon the most recent study performed by the Company’s independent consultant, CTG directors are paid at the median as compared with similar sized companies, and other than a minor change to the chairman’s fee for participation on the Nomination and Governance Committee, there have been no changes in Board fees since 2014. Prior to October 2014, the position of CEO and Chairman were combined in one position. In October 2014, a non-executive chairman was elected by the Board. The fees paid to the Chairman of the Board, totaling $100,000 annually, were a significant part of the increase in the Board’s total compensation when comparing the 2015 Board fees with those from 2014.

Our dynamic business generates solid and consistent free cash flow. In recent years, with the support of numerous CTG investors, the Company has developed a program to return excess capital to shareholders in a tax-free manner under a robust share repurchase authorization.

We will continue to take steps to build on our momentum and position CTG to capitalize on the significant long-term growth opportunities in our served end markets. We are confident that our expanded solutions offerings during the second half of the year will advance our future growth opportunities and accelerate the achievement of our objectives, including generating substantial long-term value for CTG shareholders.

As previously announced, the Company will hold its Annual Meeting of Shareholders on Thursday, September 17, 2020, at 10:00 a.m. Eastern Time. In connection with the Annual Meeting, the CTG Board recommends shareholders vote “FOR” all CTG director nominees and “FOR” the Company’s additional proposals outlined in its proxy statement. Due to concerns about COVID-19, this year’s Annual Meeting will be a completely virtual meeting conducted via live webcast.

Raymond James is serving as financial advisor to CTG, and Baker & McKenzie LLP is serving as legal counsel to the Company.

About CTG

CTG has established a reputation for responsiveness and reliability—traits that our clients say set us apart—since our founding in 1966. Today, we provide comprehensive information, technology, and business solutions that address critical challenges for clients in high-growth industries in North America and Western Europe. Backed by a proven track record of reliable delivery, CTG fosters long-term client relationships and trust, which allows us to develop strategic insights that maximize client investments in solutions and competitive advantage. CTG has operations in North America, South America, Western Europe, and India. The Company regularly posts news and other important information online at www.ctg.com.

Additional Information and Where to Find It

On August 13, 2020, CTG filed a definitive proxy statement on Schedule 14A with the SEC. CTG has mailed the definitive proxy statement and a proxy card to each shareholder entitled to vote at the annual meeting of shareholders. BEFORE MAKING ANY VOTING DECISION, CTG SHAREHOLDERS ARE URGED TO CAREFULLY READ THESE MATERIALS (AND ANY AMENDMENTS OR SUPPLEMENTS) AND ANY OTHER RELEVANT DOCUMENTS THAT CTG FILES WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The definitive proxy statement and other relevant materials in connection with the annual meeting (as they become available), and any other documents filed by CTG with the SEC, may be obtained free of charge at the SEC’s website (http://www.sec.gov) or at CTG’s investor website (http://investors.ctg.com).

Participants in the Solicitation

CTG and its directors and executive officers may be deemed to be participants in the solicitation of proxies from CTG shareholders with respect to the annual meeting. Information about CTG’s directors and executive officers and their ownership of CTG common stock is set forth in CTG’s definitive proxy statement on Schedule 14A filed with the SEC on August 13, 2020. To the extent that holdings of CTG securities have changed since the amounts printed in CTG’s proxy statement, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the identity of the participants in the proxy solicitation, and their direct or indirect interests in the transaction, by security holdings or otherwise, are set forth in the proxy statement and other materials filed with SEC in connection with the transaction.

Contacts
Investors:
John M. Laubacker, Chief Financial Officer
(716) 887-7368

Media
Michael Freitag / Joseph Sala
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

marketscreener.com

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To: richardred who wrote (5973)9/10/2020 10:22:28 AM
From: richardred
   of 6545
 
Picking up some MTW again trading near it's low.

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To: richardred who wrote (5108)9/12/2020 8:30:24 PM
From: richardred
1 Recommendation   of 6545
 
Gilead Nears Deal to Buy Immunomedics for More Than $20 Billion Biotech drugmaker has a market value of roughly $10 billion


Updated Sept. 12, 2020 3:31 pm ET

wsj.com

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From: richardred9/14/2020 9:18:59 AM
   of 6545
 
Merger Monday

Verizon to buy wireless services provider Tracfone in $6.25 billion deal
cnbc.com

Dow Jones Today, Futures Boosted By Nvidia, Gilead, Oracle Merger News; Micron Pops On Upgrade

investors.com

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To: richardred who wrote (5974)9/14/2020 12:56:52 PM
From: Paul Senior
   of 6545
 
MTW: Following you with a small tracking buy

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From: richardred9/18/2020 11:52:34 AM
1 Recommendation   of 6545
 
New buy today-PAHC-PHIBRO ANIMAL HEALTH CORP- This company is looking interesting to me. It was impacted last Qtr. by covid. Animals need protection to. RE-Swine flu-bird flu

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To: richardred who wrote (5978)9/18/2020 2:33:51 PM
From: E_K_S
   of 6545
 
Followed you in on this one. One I have owned before


I started a small position in PAHC (Phibro Animal Health Corp). Added to my AG basket (as well as AGGZF)

Phibro Animal Health Corporation is a global diversified animal health and mineral nutrition company. It develops, manufactures and markets a broad range of products for food animals including poultry, swine, beef and dairy cattle and aquaculture. The Company offers vaccines, anti-infectives, disinfectants, mineral premixes, medicated feed additives, antimicrobials, performance chemicals, and cosmetics. Phibro Animal Health Corporation is based in Teaneck, New Jersey.
I owned this in 2016 and 2018 and sold it at/near $36.00/share. I had it in my Ag basket and am building that basket up again.



I have a small starter position @ $17.71/share @ 17.51/share and will scale in news Buys every 2% lower. Not a screaming value Buy but if that Hog virus picks up (or any of those other animal viruses) PAHC is where farmers get the medicine. The also have a pretty good feed supplement business that provide farmers preventative additives to their animal feed.

First African Swine Flu Case Confirmed Near Germany-Poland Border

I also notice that ADM is at/near multi highs. Corn & Soybean harvest starts soon and have been adding AGGZF to my Ag basket. They sell/manufacturer grain bins among other farm supplies.

If you compare PAHC to ZTS (another animal vaccine supplier w/ $76Bln market Cap and forward PE at 30x), PAHC is pretty cheap. PAHC only a 0.76 Bln market cap.

EKS


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To: richardred who wrote (5978)9/18/2020 3:08:00 PM
From: Paul Senior
   of 6545
 
Also following you with a small buy.

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