Shares of Monster Worldwide are up over 8% in afternoon trading on Friday after news that MediaNews Group, its largest stakeholder, raised objections over the company’s proposed sale.
Based in Weston, MA, Monster is an online recruitment service and parent company of Monster, the global careers website. On August 10th, Monster reported a Q2 earnings miss, but also announced that it was to be acquired by Amsterdam-based staffing agency Randstad for about $429 million, or $3.40 per share in cash. The deal is expected to close in the fourth quarter of 2016.
On Friday, MediaNews revealed that it has an 11.6% stake in Monster, and called Randstad’s offer the definition of “selling it at the bottom.” The company wrote a letter to Monster’s board, in which it encouraged fellow shareholders to oppose the deal, and for the company to explore all strategic options. This includes an auction, review of business operations, and restructuring.
As a result of the MediaNews’ statement, shares of Monster traded up as high as $3.75 on the day.
Leading up to Friday’s events, shares of Monsters were down over 40% year-to-date. The company has been underperforming in North America as a result of competitive pressures, with trends showing no signs of reversal. Furthermore, the company’s rebranding and cost-cutting have also not paid off.
MediaNews’ claim that Monster is selling at the bottom is a bit difficult to believe, particularly when considering that the company has seen downward earnings estimate revisions for the foreseeable future. Current quarter estimates stand at $0.01 in earnings per share, down from the $0.05 estimate of 60 days ago, while full-year estimates have slipped 16 cents to $0.05 per share.
However, the day before MediaNews’ statement, Monster announced a collaboration with Recruiting.com in order to “deliver a combined job candidate experience solution that will improve how people interact with small businesses as potential employer.”
Although this partnership could potentially help spice things up for an otherwise bland Monster, investors should remain wary of the company’s extended stagnation.
Monster Worldwide currently sits at a Zacks Rank #4 (Sell).
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Why is Monster Worldwide (MWW) Stock Up 8% Today?
Shares of Monster Worldwide are up over 8% in afternoon trading on Friday after news that MediaNews Group, its largest stakeholder, raised objections over the company’s proposed sale.
Based in Weston, MA, Monster is an online recruitment service and parent company of Monster, the global careers website. On August 10th, Monster reported a Q2 earnings miss, but also announced that it was to be acquired by Amsterdam-based staffing agency Randstad for about $429 million, or $3.40 per share in cash. The deal is expected to close in the fourth quarter of 2016.
On Friday, MediaNews revealed that it has an 11.6% stake in Monster, and called Randstad’s offer the definition of “selling it at the bottom.” The company wrote a letter to Monster’s board, in which it encouraged fellow shareholders to oppose the deal, and for the company to explore all strategic options. This includes an auction, review of business operations, and restructuring.
As a result of the MediaNews’ statement, shares of Monster traded up as high as $3.75 on the day.
Leading up to Friday’s events, shares of Monsters were down over 40% year-to-date. The company has been underperforming in North America as a result of competitive pressures, with trends showing no signs of reversal. Furthermore, the company’s rebranding and cost-cutting have also not paid off.
MediaNews’ claim that Monster is selling at the bottom is a bit difficult to believe, particularly when considering that the company has seen downward earnings estimate revisions for the foreseeable future. Current quarter estimates stand at $0.01 in earnings per share, down from the $0.05 estimate of 60 days ago, while full-year estimates have slipped 16 cents to $0.05 per share.
However, the day before MediaNews’ statement, Monster announced a collaboration with Recruiting.com in order to “deliver a combined job candidate experience solution that will improve how people interact with small businesses as potential employer.”
Although this partnership could potentially help spice things up for an otherwise bland Monster, investors should remain wary of the company’s extended stagnation.
Monster Worldwide currently sits at a Zacks Rank #4 (Sell).
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week’s financial and investment news.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>