PENSION SYSTEM SLAMS FIRMS; CALPERS NAMES WEAK STOCK PICKS.Byline: Katherine Burton Bloomberg News Circus Circus Circus Circus is used as the name for two casinos:
CalPERS, the nation's biggest public pension fund, picked nine companies this year for shareholder activism aimed at improving their stock prices. CalPERS chose its target companies based on stock performance, board practices and a financial performance measure called economic value added Economic value added (EVA) A method of performance evaluation that adjusts accounting performance for investors' required return on investment. Suppose a division produces a 12% return on capital invested. . ``We intend to push for an end to the dual class structure at Tyson and win greater independence on the board of Circus Circus,'' said Charles P. Valdes, chairman of CalPERS' Investment Committee, in a prepared statement. Cummins Engine Co., Sierra Health Services health services Managed care The benefits covered under a health contract Inc., Pioneer Natural Resources Co., St. Jude Medical St. Jude Medical, Inc. NYSE: STJ is a $2.9 billion global cardiovascular device company, with headquarters in St. Paul, Minnesota, United States. The company sells products in more than 100 countries and has over 20 operations and manufacturing facilities worldwide. Inc., Pacific Century Financial Corp., Mallinckrodt Inc., and National Semiconductor Corp. are the other companies on CalPERS' list. CalPERS puts pressure on lagging Lagging Strategy used by a firm to stall payments, normally in response to exchange rate projections. companies to reform their board practices, rather than just selling the shares, because the fund has found that activism can improve stock performance. The stocks of 53 companies targeted by the fund trailed the Standard & Poor's 500 Index by 75.2 percent in the five-year period before CalPERS placed them on its lists, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a study by pension consultants Wilshire Associates Inc. The same stocks outperformed the index by 54.4 percent in the following five years, adding about $150 million annually to the fund. Last year's target companies includes Michaels Stores Inc., Sybase Inc. and Advanced Micro Devices Inc. One company on this year's list, St. Louis-based Mallinckrodt Inc., a maker of drugs and medical devices, complained that CalPERS used old data in compiling its list. Since Sept. 30, the cutoff date CalPERS used to measure stock performance, Mallinckrodt shares have climbed 49 percent, compared with 29 percent for the Standard & Poor's 500 index. |
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