Despite the downturn in the economy and start market, activist investors are still making their market on what they consider to be undervalued assets. Here at Stockpickr.com, we track many of the latest activist situations for those interested in piggybacking these investors.

For example, Southeastern Asset Management recently said that the fund management group will continue discussions with Sun Microsystems (JAVA) management or third parties regarding ways to maximize shareholder value.

The fund owns a whopping 21.2% of technology giant Sun Microsystems, so expect some initiatives.

Next on the list is Chimera (CIM). ValueAct Capital Management is asking Chimera’s board to rethink the timing and size of its proposed 250 million common share offering. ValueAct said the proposal, which it called "massively dilutive" and "misguided," shows "complete disregard for current Chimera shareholders." ValueAct believes that Chimera should raise capital through "a much smaller offering."

Chimera was previously spun off from Annaly Capital Management (NLY) and operates as a REIT.

Next we have Contango (MCF). Sellers Capital wants Contango to make its share-buyback program “much more aggressive.” The famous hedge fund said that Contango should buy at last 10% of its outstanding shares immediately, using only about four months worth of after-tax cash flow.

Sellers Capital currently owns about 16% of Contango.

And finally we have Dillard's (DDS). Barington Capital and Clinton Capital are calling for the head of
Dillard’s CEO Bill Dillard. The groups recently stated that “in our opinion, a management team with a comparable record of poor performance at any other company would have been fired long ago.” Barington and Clinton also protested the Dillard family’s compensation, saying the family members are “overpaid and under-qualified for the positions they hold and can be readily replaced with more talented retailers.”

Since Bill Dillard was appointed the CEO of Dillard's, the market cap of Dillard's went from $5 billion dollars in 1998 to less than $250 million today. William Dillard II's average three-year compensation is 54% above the median paid to CEOs at peer companies. The average three-year compensation of the company's other executive officers is 185% above the median, according to Barington and Clinton Capital.

Shares of Dillard's are down about 80% this year alone, and it has a short position of 20%.

For more activist ideas, including Strategic Hotels & Resorts (BEE), Hill-Rom Holdings (HRC) and Epicor (EPIC), please check out the Latest Activist Situations portfolio and the latest activist filings from Barron’s.

Posted on Nov. 3, 2008