Strategy in TECH...
The relationship between Samsung and its largest union is rapidly deteriorating and suddenly, a strike called by the union initially more for show than impact, has turned very serious. That means that as the union progresses its tactics, the impact on production is likely to quickly reach the point that it will be felt by the company and all of its customers.
Masimo Corporation (Nasdaq: Masi) announced on Tuesday that it has filed a lawsuit in Federal Court in California against Politan Capital Management and CIO Quentin Koffey, asking the court for an injunction to force Politan “to correct material misstatements and omissions”…in its “proxy materials.” It also says it has set a new date for its 2024 Annual Meeting of Stockholders, with a new record date, “to ensure that the vote of the Company’s stockholders is fair and fully informed.” That move is clearly in reaction to evidence uncovered by Politan of a legal but ethically questionable move called “empty voting” in an apparent attempt by an individual who is a friend of Joe Kiani to swing the vote in management’s favor – a move that Politan says would disenfranchise investors who voted.
Every day brings us closer to the Masimo 2024 Annual Meeting of Stockholders scheduled for July 25th…and virtually every day also brings us more Masimo madness. The proxy war for two seats on the Board of Directors being fought between the company management and activist investor Politan Capital Management continues to heat up. Consequently, we learn new things every week, some of which can be disturbing. This week is no exception as we discover: 1) the company publishes letters from employees that suggest they may all quit; 2) the Joint Venture Partner interested in buying a majority stake in Sound United has offered terms that specify a price range it is willing to pay; and 3) Politan has filed paperwork with the SEC that includes a letter to the Masimo Board of Directors claiming it has detected voting irregularities known as “empty voting.”
The National Samsung Electronics Union (NSEU) announced on Monday that it will launch a general strike against Samsung that will continue until the company meets its demands for better pay and more time off, according to a report by Reuters. The union went on to warn “of [a] more damaging action” against the company than a one-day walkout last month.
In a new filing with the Securities and Exchange Commission (SEC), Masimo Corporation (Nasdaq: MASI) reveals that Bilal Muhsin, its Chief Operating Officer (COO) has sent a conditional letter of resignation to the Board of Directors. The move is yet another escalation in the proxy war for control of the company between Masimo management and activist investment group Politan Capital Management – one of the company’s largest shareholders that already holds two seats on its Board.
The annual Masimo (Nasdaq: MASI) shareholder meeting is now just four weeks away, and on Wednesday we saw a blizzard of proxy filings by both Masimo management and activist investor Politan Capital Management. The gloves are off and the pugilists are swinging. But how is this fight shaping up? Who has the upper hand?
In yet another sign of mega changes in the electronics industry, news comes to us out of Japan via the Nikkei that Sharp Corp. – a division of Apple supplier Foxconn – is in negotiation to sell off a majority of the property and factory associated with its largest LCD panel manufacturing facility in Japan. That news alone surprised many in Japan, as Sharp has been a world leader in developing LCD TVs, but also surprising is that it would choose to sell this facility, a flagship for them in Sakai, a coastal city in Osaka.
Also surprising, a bidding war has broken out as multiple big players seek to turn the factory into a data center for use in generative AI, a technology in which Japan feels it lags.
Savant Systems, Inc. announced today that it has expanded its popular line of Inception motorized shades designed by J. Geiger, and in so doing says it created more opportunities for custom integration specialists everywhere – including for integrators using other brands of system control solutions. Inception features a unique, elegant, minimalist roller shade design that was very much popularized by J. Geiger – which is now owned by, and exclusively available from, Savant.
At the recent 2024 Oasys Summit, I had the opportunity to meet with top Nationwide Marketing Group executives who were all directly involved in the birth of the Oasys Residential Technology Group, as well as the greater strategy of the Nationwide Drive to 1,000 initiative. I spoke with Dean Sottile, Andy Orozco, and Hank Alexander, each of whom offered interesting insights and perspectives on the progress of this grand adventure they have collectively embarked upon.
Masimo Corporation (Nasdaq: MASI), yet another company in Tech that reported their financial results for the first quarter of Fiscal 2024 after the close of business on Tuesday, revealed that both revenues and profits had declined double-digit percentages in the quarter. What was remarkable about this result is that Masimo CEO Joe Kiani said in a statement in the release about the Q1 results that the company is “reaching a steady state.”
Investors apparently didn’t see it that way, as shares in MASI stock dropped almost 12% on Wednesday, the next trading day after the announcement.
