New CEO for Acxiom Corporation

Originally Published In the News January 25, 2008 9:50 AM

Broken deals have decimated several stocks that Wall Street had assumed would disappear via takeouts. Acxiom (ACXM-NASDAQ) is one of the walking wounded, and shareholders likely feel they have been left for dead. We have long had problems with this management team, but every stock has its price. This one might be approaching that point, and if you want to eventually play a rebound in consumer credit this stock offers a different angle than most:

The company suffered a significant slowdown in the key financial services vertical, which declined 7.6% versus last year primarily due to cutbacks in the volume of marketing by credit card companies. Management stated that these cutbacks typically last about six months (now in month four), that trends are not getting any worse, and that the business seems to be bottoming. We are not entirely convinced that there will be a quick turn and are cautious regarding the spending environment for this important segment. William Blair

This stock has been an unmitigated disaster; perhaps a catalyst, in the form of a new CEO, will inspire the BuySide to take another look at the name. This is unlikely to provide Fast Money traders with thrills, but merits a look from contrarians who like to buy other peoples pain. Acxiom is a made up word, which must translate into “debacle”, at least if you talk to their sadomasochist stakeholders.

Acxiom Conference Call Transcript
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