The hedge fund Elliott Associates, which holds an eleven percent stake in Cabela’s, has said that the shares of the hunting equipment retailer were significantly undervalued. The investor, therefore, urges the management to explore ways to restructure the chain or even to sell it. Following the Elliott statement, Cabela’s share went up by 18 percent.
It was rumored that other financial investors may be interested in taking over the retail group. The management was urged to look into new ways to overcome the chain’s undervaluation.
Last week, Cabela’s reported sales down by 18.8 percent compared with the previous year’s third quarter. The management admitted some weaknesses in its current fall/winter line of garments and footwear.