Why Shares of ValueVision Media Inc. Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ValueVision Media  were soaring today, up as much as 11% and finishing up 7% after shareholders voted for a change in the home-shopping network's board of directors.

So what: The Clinton Group, an activist investor firm which has been agitating for a board change, reported that in preliminary vote tallies from the annual shareholders meeting, shareholders "expressed overwhelming support" for change in the board.  The Clinton Group said that it expected six of the eight directors to be new once the election was certified. 

Now what: The Clinton Group and ValueVision have been embroiled in a long debate with Clinton Group President Gregory Taxin accusing the company of consistent underperformance, and for not creating a plan to take advantage of its distribution agreements with cable and satellite. ValueVision's current board defended itself, of course, noting that those members have led the stock up 166% and delivered positive sales growth. It's too soon to tell if Clinton's nominees will be able to drive any additional value for shareholders, but clearly, the group's fellow investors bought its argument. ValueVision has missed earnings estimates in its last two reports, and has operated at a loss in its last three years.

Will this stock be your next multibagger?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

The article Why Shares of ValueVision Media Inc. Jumped originally appeared on Fool.com.

Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story