No, what you should also give me the nod on the serious possibility that, no matter what Starboard does with QTM, history will show that it was a bad investment. You blame QTM management? I blame the fact that QTM management is stuck in a niche market, much of which seems to be shrinking, and doesn't have the resources to transition out of that niche to a "real" growth market. It seems to me that nothing that Starboard can do, short of injecting HUGE AMOUNTS of NEW capital will change that trajectory. New management won't change that trajectory. Only capital investment that fosters new product innovation will make a difference. Is Starboard doing that? No. To think that a company whose highest revenue side is a shrinking segment has great value without any sign of significant investment in product shift doesn't exactly scream "I'm a smart investor." More likely, its a sign of totally mis-reading QTM's niche business. Way to go, again, Starboard!
QTM announces positive financial news. QTM briefly spikes, then drops. Then, the market has a big up day. QTM closes flat on average volume. Hmmm, I wonder what major holder might be slowly selling? Could it be Starboard? Nah! They would never even think of selling slowly to reduce their position over the next year. They're in this to profit from QTM's bright future way out after 2016! They always make smart investments! I love Starboard! They're my heroes!
Position? Yes. Managerial influence? WHAT managerial influence?! They can't even manage to get all the board positions that they need until 2016! You call in managerial influence. I call it scrambling for a way out. The track record suggests that Starboard doesn't always make good choices. This absolutely has the signature of one of those. Oooo, QTM's down to $1.27! BUY! Duh...
Given all the turmoil in the industry, the VPCO report was surprisingly good, and indicates the right moves to be very well positioned. My 18yo non-smoker nephew (from a 100% non-smoking family) recently bought a vaporizer. He brought it out at a family party and all the relatives, regardless of age, thought it was awesome. Everyone loved the non-nicotine flavored e-juices. A GREAT sign of things to come!