Thursday, February 22, 2007

Jove Partners Discloses 5.1% Stake in Matrixx Initiatives (MTXX), Suggests Acquisition

In a 13D filing on Matrixx Initiatives Inc. (Nasdaq: MTXX), Jove Partners disclosed a 5.1% stake (500K shares) in the company.

The firm noted in the filing that they appreciate the job that management has done and is doing to build the Zicam brand. However, they believe that the value created to date has not been appropriately recognized by the market and will not be fully realizable as long as Zicam remains a stand-alone brand. In particular, the the firm believes that the company's profit margins have been depressed and should normalize over the next several years. The firm believes that this normalization could be meaningfully enhanced if the company were acquired by a strategic investor.

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