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3 Reasons Why I'm Selling Nuance Communications

Things at Nuance Communications (NASDAQ: NUAN  ) aren't exactly going great. The voice recognition company faces a difficult revenue transition, it recently swallowed a poison pill to likely thwart activist investor Carl Icahn, and its CEO compensation package isn't exactly aligned with shareholders' best interests. What's more, Nuance's performance over the last year is flirting with bear market territory.

Add up all of these factors, and Fool contributor Steve Heller has decided to sell his shares in Nuance in the coming weeks, after his disclosure period expires. Check out the video below to get the top three reasons why he decided to throw in the towel.

Do you think Steve is capitulating? Drop a comment in the box below.

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Read/Post Comments (6) | Recommend This Article (4)

Comments from our Foolish Readers

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  • Report this Comment On August 28, 2013, at 9:38 PM, goepero1 wrote:

    Cant blame him. The company has some good technology, but very poor management. Id be down on it except Ive written a lot of calls on the position, following the stock down writing more.

  • Report this Comment On August 29, 2013, at 10:07 AM, dviz wrote:

    You *do* understand that the poison pill in this case is a *provision* and was in no way swallowed; right? It is a threat. Nothing more at this time. Nuance only said "don't do this or I will". Still not a good sign, but you should get it right if you're going to write for the Fool.

  • Report this Comment On August 29, 2013, at 11:51 AM, DamekMW wrote:

    Hey steve. Where's your daily tirade against nuance today?

  • Report this Comment On August 29, 2013, at 11:58 AM, DamekMW wrote:

    dviz - I honestly don't think Heller understands how a poison pill works lol. Watch the video 'nuance swallows it's poison pill' at about 1 minute into the video. watching him try to explain it is hilarious. seems like he believes it's actually a little poison pill to ward off Icahn... like garlic and vampires. lmfao!!!!

  • Report this Comment On August 29, 2013, at 12:13 PM, dviz wrote:

    Yeah, I saw that and wondered if The Fool actually has anyone screen these for ineptitude before they go live... <disclosure - I do hold NUAN, and I am long with it, and I agree it is undervalued and could be managed a lot better and the poision pill *provision* IMHO was a bad idea, but nonetheless...>

  • Report this Comment On August 29, 2013, at 2:27 PM, TMFTopDown wrote:


    Nuance *did* in fact swallow a "poison pill" by adopting a shareholder rights plan. It all depends if the conditions are met (a single investor owning more than 20% of common shares outstanding), whether the "pill" aka shareholder rights plan will be exercised.

    Thanks for your comment.

    Steve Heller

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