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What's happening?
Shares of Container Store (TCS +0.00%) currently hold a 7% gain after briefly topping out at a gain of more than 13%. The stock's unusual rise was prompted by a presentation by Apex Capital at the Sohn Conference yesterday afternoon, which revealed that the hedge fund now owns roughly 4.5% of Container Store's stock and will begin agitating for change.
Why it's happening
Apex founder Sandy Colen presented his case for faster store growth and tighter cost controls at the conference in San Francisco, pointing out that Container Store could conceivably produce 15% revenue growth a year for the next decade under his plan. Another option on the table, according to Colen, is a potential private equity buyout. Colen noted that Apex is "actively engaged in suggestivism" (not a word) in an interview with Bloomberg before his presentation, and has already met with both Container Store's senior leadership and 57% majority owner Leonard Green & Partners to push his plan.
