ValueAct Capital Looks for Value in Omnicare (OCR)

In an amended 13D filing after the close Wednesday on Omnicare, Inc. (NYSE: OCR), ValueAct Capital disclosed they raised their stake in the beleaguered pharmaceutical care company. ValueAct bumped their stake from 6.5% (7,942,925 shares) to 7.7% (9,319,330 shares).

Omincare, already sitting near 52-week lows, sank further this week as investors became worried about an inquiry by the United States Attorney's Office. The stock sank 7% on Tuesday and another 6% yesterday following a Dow Jones news report on the DOJ probe. In response to the sell-off and media stories the company said, "We do not believe there is anything significant related to this review that has not already been disclosed in our public filings."

Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings.

ValueAct is showing actions of a true value investor ---- buying when blood is on the streets. It remains to be seen if their aggressive investment pays off.