this post was submitted on 17 Jul 2023
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Activist Investing

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This community is intended to discuss Activist Investors and Activist Investor Groups - terms used to describe individuals or groups who use sufficient ownership to lobby public companies to make changes which a board might otherwise resist. This could be in order to improve working conditions, keep jobs domestic rather than exporting overseas, or encourage more environmentally sustainable choices when operating the business.

Activist investor campaigns can also simply focus on maximizing shareholder value, and can be organized by parties who feel the current board is not meeting the fiduciary obligation to shareholders and wants to influence their decisions and practices. Even hedge funds which specialize in the application of public pressure through media partners can be considered activist investors.

Typically, a threshold of 5% ownership of a company must be reached by an individual or a group before they are recognized. This is because 5% is the ownership level which requires public filing through the SEC using a 13D disclosure - and that public filing will require a public response to demands from the incumbent board of directors.

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3 Platform Items I would like to see from a GameStop Activist Investor Group (lemmy.whynotdrs.org)
submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]
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  1. GME should work with Computershare so they (CS) can serve as a custodian for IRA’s. Ally and Mainstar have both walked back their support for DRSing IRAs. Computershare acting as a custodian as part of their contract with GameStop should allow for a cleaner solution.

  2. Revise the contract w/ Computershare w/ respect to their DirectStock plan, and provide more transparency to investors about both the ownership hierarchy of shares in the plan and the degree to which DirectStock shares are utilized for 'operational efficiency' - often 10 to 20%

  3. Issue a bulk of shares available for direct purchase by investors, similar to Home Depot's Depot Direct. This would allow for GameStop to sell shares directly to investors, and would allow purchases to be "Pure DRS" without further steps or actions.

Edit - Adding in 4, 5, and 6 from my comments on this post.

  1. request that GameStop insiders (or at least board members) must hold their shares in Pure DRS, especially for vested shares that cannot be sold for a while.

  2. GameStop should consider becoming their own transfer agent when their contract with Computershare is up for renewal.

  3. Introduce pro reward incentives, like additional percentage off, for verified stockholders on their ledger.

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[–] [email protected] 3 points 1 year ago

We could definitely organize ourselves like this. But we would need statutes, a direction, meetings with meeting minutes, etc.