Little-known Intrado (TRDO), a provider of 911 phone services to U.S. carriers, has attracted some big hitters, such as Roy Disney and Stanley Gold of Shamrock Capital Advisors. What are Disney and Gold -- who led the charge against Michael Eisner at Walt Disney (DIS) -- up to?
Some pros sniff a move to shake up Intrado that may lead to the sale of the company. One investor close to Shamrock says Disney and Gold, who own 1 million shares, or a 6.2% stake, "aren't in this just to make a couple of bucks on their stock." A corporate raider has also been buying shares, says one pro who did not want to be identified. Shamrock wants Intrado to boost its return on capital. Its stock has been flat since it went public in 1998 at 12 a share. In June, when Shamrock bought shares, the stock jumped to 15, where it is now. Intrado's board will meet Shamrock execs on July 27. William Benton of William Blair (it did banking for Intrado and owns shares) rates Intrado "outperform" because shareholder pressure could improve profitability. He says some private equity funds were interested in taking Intrado private even before the Disney move. He sees earnings of 54 cents in 2005 and 55 cents in 2006, vs. 72 cents in 2004.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.
By Gene G. Marcial