Shares of Nautilus (NYSE: NLS), the maker of the BowFlex and the StairMaster, have hit a 6-year low after the company reported another disappointing quarter last week. To make matters worse, Herb Greenberg wrote an interesting piece on the company, based on an interview with an analyst who claimed that the company was giving him the silent treatment after he downgraded the stock. So investors are left questioning the character of top executives, while the company's operational failures speak for themselves.

In steps Sherborne Investors, which reported a 19.9% stake in the company this morning. This is especially interesting because according to the firm's website: "Sherborne Investors is a 'turnaround' investment firm which targets publicly quoted European and US companies that have underperformed the market due to operational, rather than capital structure, issues. We develop a turnaround thesis, acquire a significant equity position, and then obtain a shareholder mandate to effect a change in board composition. Sherborne does not agitate for others to make changes; rather, we assume responsibility for directing or managing a turnaround for the benefit of all shareholders."

The shares are badly beaten down and the company is need of a turnaround. But there's no question that the core brands have a lot of value, and stock may be undervalued now that someone has arrived on the scene to shake things up.