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.
Love it. What’s the next step towards forming one? Time to lawyer up?
For better or worse, I think that may be needed. Maybe not, though... with all of us, I'm tempted to say we can sift through the various red-tape and bullshit (loosely speaking) easily enough.
Not a chance. You don’t take complex regulatory actions like this without legal counsel. Take another positive from there being so many of us: the cost per person will be low.
Though I suppose we could get a miracle and have some pro bono work gifted to us.
Love it!
Adding two other ideas -
GameStop should consider becoming their own transfer agent when their contract with Computershare is up for renewal.
Introduce pro reward incentives, like additional percentage off, for verified stockholders on their ledger.
ChatGPT...
Here's what it has to say from "How do you form an Activist Investor Group?"
Forming an activist investor group involves a strategic and organized approach. Here are general steps to consider when forming an activist investor group:
Define Objectives:
Identify Like-minded Investors:
Build a Network:
Establish Legal Structure:
Define Roles and Responsibilities:
Develop a Strategy:
Conduct Research and Due Diligence:
Engage with Target Companies:
Leverage Resources:
Execute and Monitor:
Note that forming an activist investor group involves legal, financial, and regulatory considerations. It's crucial to consult with legal and financial professionals to ensure compliance with applicable laws and regulations and to mitigate any potential risks.
(note by me: this last sentence is interesting and, to me, I think is legitimate in many ways, though does come across as maybe something that would be said by a sort of Wall Street lackey)
More resources:
.. just came across this and thought it is a good, quick article and (maybe) whole website. https://theactivistinvestor.com/The_Activist_Investor/Blog/Entries/2015/7/21_13D_Groups.html
few other potential resources:
I clicked "Regenerate response" on ChatGPT and got more with a couple duplicates.
It also said,
"It's important to note that each activist campaign is unique, and outcomes can vary depending on the specific circumstances, company dynamics, and market conditions. Successful "wins" by activist investor groups are often the result of thorough research, strategic engagement, building alliances, and effectively articulating the case for change to other shareholders and stakeholders."
at this rate it's hard to trust just about any websites about this.. about guaranteed one or all of those are corrupted somehow
"The American Council of Doctors for Smoking" type of thing comes to mind.
A fourth potential - 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.
We could definitely organize ourselves like this. But we would need statutes, a direction, meetings with meeting minutes, etc.