Nautilus (NLS) CEO steps down -- More changes to come?

Nautilus (NYSE: NLS) President and CEO Greg Hamman resigned abruptly, with no explanation given in the company's press release. Hamman will also be giving up his board seat, and will be replaced in his leadership role by Robert S. Falcone, the company's current lead independent director, on an interim basis.

Sherborne Investors has accumulated just under 20% of the company's shares and, given its activist background, it seems likely that the fund's position in the stock contributed to Hamman's departure.

Also intersting, the company has attracted the scorn of watchdog Herb Greenberg for its harsh treatment of an analyst who had the nerve to give the stock a sell rating. The stock's performance in recent years tells you all you need to know about the wisdom of the analyst's sell-call, and also the performance of the company's management.

But there may be value here. Nautilus is trading close to its book value with a low price-earnings multiple and a firm like Sherborne may be just what is needed to shake things up.

I would consider buying Nautilus here. The party has already ended for one overpaid CEO, and more changes are hopefully coming. There is no question that the Nautilus brands, including BowFlex have value.