‘Long-suffering’ Grange Johnson Gives Stamps.com A Licking

Aug 2 2007 | 11:54am ET

Grange Johnson is mad as hell, and he’s not going to take it anymore. The hedge fund manager is demanding action from mailing and shipping services company Stamps.com, whose stock price is languishing near its 52-week low, to improve its performance.

Johnson, the head of LaGrange Capital Management, demanded that Stamps.com announce a tender offer for as many as one-third of its outstanding shares. And if that doesn’t work –quickly – Johnson said the company should explore a sale.

“We are long-term and long-suffering holders of Stamps.com,” LaGrange, whose two funds own a combined 6.4% of the company, wrote in a letter to its board of directors. “The company’s consistently poor execution, which has driven its woeful stock performance, requires more aggressive corporate actions.”

Stamps.com--of which LaGrange wrote, “I can think of few better investments than buying STMP stock at its current multi-year low price,”--generates cash and is over-capitalized, he argued, meaning the company could complete the tender offer without taking on any debt. But Johnson made clear that he is not averse to pushing for a sale, even suggesting some possible buyers.

“Perhaps STMP is best run as part of a larger firm such as Intuit or j2 Global Communications,” he wrote. “Such firms could offer PC Postage as part of a broader package of products.”


In Depth

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of