porcupine

Company has formed a special committee to determine if they should uplist or not, as suggested by 10%+ holders B. Riley and 272 Capital. Given that Kamin and Jacullo are not on the special committee, I think there is a pretty high probability of this occurring (would be hypocritical of them to be on the committee that uplists the company when they were the ones who delisted the company in the first place). Congrats to all who are still in this. Funny that the initial thesis revolved around buying from institutions who were forced to sell, and that those same investors may now have the potential to sell back to those same institutions (small cap index funds) who will be forced to buy at much higher prices.

Nice call Oracle.

This is great work. Thank you for sharing.

$.25 div Ex Date May 29th.

I dont suppose they had any information on their delayed financials ? Maybe going dark is a real possibility for the company. This was a client service email rather than an IR email. They should delist IMO.

For those interested in this situation, the publicly available documents filed by Bernstein Litowitz Berger & Grossmann LLP contain some great info (e.g., board considering special div in 2020, 2020 EBITDA guidance, emails between Jacullo and Kamin) within the exhibits and Plaintiffs' Opening Brief. The Rucker resignation letter doesn't hold a candle to the emails between Jacullo and Kamin. https://www.blbglaw.com/cases/Tile-Shop?viewDocs=1

Getting closer and closer to the day. I'm not sure where the confidence from the author was coming from. Your interpretation seems correct. Perhaps those who were comfortable with this proposition will become sellers on Monday (February 17th). With a $47mm market cap, is it even worth the compliance costs for the company to stay listed on the Nasdaq and comply with the SEC? Either way, this still looks extremely cheap... and may become cheaper on Monday. No position.

Was wondering if anybody with an accounting/audit background could help with this. Given the statement below found in this particular company's credit agreement, could the line of credit potentially be cancelled if this company were to receive a qualified audit opinion (or worse)? The potential qualified opinion would likely be related to their internal control procedures. Below is included in the Affirmative Covenants Section: "...audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit;" Thanks in advance.

Tile Shop Holdings is delisting and recently plunged from $3.35 down to where it is currently trading at $1.52. On top of the surprise delisting, the company also discontinued its dividend and buyback program (which was 66% complete). The company has been facing some difficulties as same store sales have been declining for several quarters. Foot traffic has been a problem. They recently switched their ERP system, which led to to difficulties with their POS system. After talking to an employee today, I learned that the system would go down frequently earlier this year and they would have to write out invoices then charge the customers later when the system was back up and running. Management believes that this caused Pro customers (their pro program gives discounts to pro customers) to temporarily stop coming into the store. Additionally, they attributed same store sale declines to weather in Q1 of 2019. There is also the China concern. They have been shifting the sourcing away from China for the past two years. Less than 50% of their sourcing comes from China today. They currently have 142 stores and their goal is to have around 400 in ten years. They operate in a highly fragmented industry, with local and national competitors. Their main point of differentiation is the breadth of their offerings (they believe that nobody comes close to how many different products they offer). Two board members, Peter Kamin and Peter Jacullo, have purchased 4.3mm and 2.3mm shares (respectively) in the open market since the announcement on the 22nd. I think these purchases warrant further investigation into TTS. Still doing research on this, but it seems like forced selling from institutions and those investors concerned with liquidity has driven the price down to levels where there is simply too much pessimism priced in. They have had some bad press recently. Wynnefield Capital is suing to stop them from delisting, stating that the board broke their fiduciary duty by purposefully plunging the share price so Rucker (the founder) can regain control of the company through Kamin and Jacullo. There were also some related party issues that occurred back in 2013. Looks like an interesting situation.

I will open one.

Shall we do this again in the near future?

Sold some KTB.

Voted for. Looks like this is going to happen. Nice find, Writser.

Loved this doc. One of the co's featured was my first investment ever... got done w the intelligent investor and was looking for net nets. Got burned by a fraud. First experience displaying and acknowledging cognitive dissonance as well, which has been helpful going forward. Good research, long or short, should eventually be rewarded.

Likewise. I'm always game.