LowIQinvestor Posted April 3, 2019 Share Posted April 3, 2019 My guess is massively discounted capital raise soon Maybe by insiders again? Link to comment Share on other sites More sharing options...
Poor Charlie Posted April 3, 2019 Share Posted April 3, 2019 I’ve seen a lot of crazy stuff in small caps. But I’ve never seen a situation where a company acquires assets from the chairman, and then those assets get written down just months later (while he’s selling his stock?). And this wasn’t some minor deal like buying the chairman’s car: they acquired something like $12 million in RE against beginning equity of $16 million. I’m surprised the shareholder lawsuit firms haven’t showed up yet. You’d think stuff like this would be red meat for that crowd. Link to comment Share on other sites More sharing options...
Spekulatius Posted April 3, 2019 Share Posted April 3, 2019 I’ve seen a lot of crazy stuff in small caps. But I’ve never seen a situation where a company acquires assets from the chairman, and then those assets get written down just months later (while he’s selling his stock?). And this wasn’t some minor deal like buying the chairman’s car: they acquired something like $12 million in RE against beginning equity of $16 million. I’m surprised the shareholder lawsuit firms haven’t showed up yet. You’d think stuff like this would be red meat for that crowd. It certainly doesn’t help to win new customers for the asset management business, that’s for sure. Link to comment Share on other sites More sharing options...
sarganaga Posted April 3, 2019 Share Posted April 3, 2019 I’ve seen a lot of crazy stuff in small caps. But I’ve never seen a situation where a company acquires assets from the chairman, and then those assets get written down just months later (while he’s selling his stock?). And this wasn’t some minor deal like buying the chairman’s car: they acquired something like $12 million in RE against beginning equity of $16 million. I’m surprised the shareholder lawsuit firms haven’t showed up yet. You’d think stuff like this would be red meat for that crowd. It certainly doesn’t help to win new customers for the asset management business, that’s for sure. When you consider the original premise for the change in control/management, the very insider friendly, discount to market raise of capital, operational failures, related party transactions, not much looks very beneficial to the common shareholder. Link to comment Share on other sites More sharing options...
fishwithwings Posted April 4, 2019 Share Posted April 4, 2019 I can’t believe how complicated the financial statements have become... Link to comment Share on other sites More sharing options...
Guest roark33 Posted April 5, 2019 Share Posted April 5, 2019 "And in November 2018, we signed our first external FMS customer, Arquitos Capital." So much for shooting straight--this fund isn't an external customer. Geesh.... https://www.otcmarkets.com/filing/conv_pdf?id=13335472&guid=4V03Up6bWYUdz3h Link to comment Share on other sites More sharing options...
NoCalledStrikes Posted April 5, 2019 Share Posted April 5, 2019 "And in November 2018, we signed our first external FMS customer, Arquitos Capital." So much for shooting straight--this fund isn't an external customer. Geesh.... https://www.otcmarkets.com/filing/conv_pdf?id=13335472&guid=4V03Up6bWYUdz3h In the context of the paragraph, I took "external" to just mean a non-ENDI managed fund. In the press release on the transaction last year, the term was "independently run". Frankly, I'd be more concerned if Steve didn't want to use ENDI's back office service for his fund. Link to comment Share on other sites More sharing options...
Guest roark33 Posted April 12, 2019 Share Posted April 12, 2019 I am not sure of the lock-ups on this, but Kiel's fund is going to show a huge decline in its returns given the share price decline. I wonder what will happen if Kiel has to sell. This could get even uglier than it already is. Link to comment Share on other sites More sharing options...
Tim Eriksen Posted April 12, 2019 Share Posted April 12, 2019 I am not sure of the lock-ups on this, but Kiel's fund is going to show a huge decline in its returns given the share price decline. I wonder what will happen if Kiel has to sell. This could get even uglier than it already is. While Kiel's fund could incur some redemptions, I would question your assumption of a huge decline. SYTE was 29% of Arquitos at year end. It has declined 37%, negatively impacting the portfolio by 11% (29% times -37%). The rest of the portfolio (MMAC, WED.V, ALJJ, BOMN, BRK options) is likely up say 12%. That would mean positive contribution of 8 percentage points (if we assume 5% cash, then the other 66% has risen by 12%. 66% times 12% = approx. 8%). So overall return as of today is likely minus 2 to 3%. Huge under performance but not a huge decline. Nearly all of STYE's decline is post March 31 so investors will not even see it in their statements until April month end (approx. May 10). Secondly assuming SYTE has an insider trading policy it would likely mean any window is closed until after earnings (mid May). All else equal SYTE would have declined from 29% of the fund to under 20% due to its decline. If there were redemptions he could sell other holdings and allow SYTE to move back up as a % of the fund. Link to comment Share on other sites More sharing options...
valueyoda Posted April 20, 2019 Share Posted April 20, 2019 It will be very hard for SYTE to overcome the SG&A burden as a small company with limited prospects of revenue growth. Therefore, a substantial price re-evaluation of the stock will be unlikely. It is even more likely that the stock will trade at a discount to adjusted book value going forward with the current problems facing the company. Also unsure whether this stock can absorb any large selling by large holders. Especially since we are getting closer toward the end of the economic cycle and with current market valuations, large upside from stakes in associated funds seems less likely. Link to comment Share on other sites More sharing options...
Tim Eriksen Posted May 6, 2019 Share Posted May 6, 2019 further changes happening. CEO, COO and a board member resign. Kiel back as CEO. Thomas Braziel joining board. https://www.sec.gov/Archives/edgar/data/1096934/000143774919008844/syte20190505_8k.htm Link to comment Share on other sites More sharing options...
Broeb22 Posted May 6, 2019 Share Posted May 6, 2019 Wow. What is going on? Feels like complete chaos. Link to comment Share on other sites More sharing options...
stahleyp Posted May 6, 2019 Share Posted May 6, 2019 In Kiel's fund letter dated April 23rd he stated: "Now that I have been bumped up to chairman of Enterprise Diversified, our CEO Michael Bridge is the person to direct any questions that you may have about the company. The annual meeting will be a good opportunity to talk with him and the rest of senior management, and I encourage you to attend." If he was on the way out (which, I mean the SEC filing says his resignation effective April 30th!), what is up with that statement? Did his resignation come out of nowhere? "Effective April 30, 2019, G. Michael Bridge resigned from his positions as President and Chief Executive Officer of Enterprise Diversified, Inc. (the “Company”) and as a member of the Board of Directors (the “Board”) of the Company." Link to comment Share on other sites More sharing options...
Guest roark33 Posted May 6, 2019 Share Posted May 6, 2019 Occam's razor--this company is just a sh$tshow. No other mental gymnastics required for explanation. Link to comment Share on other sites More sharing options...
InelegantInvestor Posted May 6, 2019 Share Posted May 6, 2019 They waited a week to let anyone know that the CEO and COO resigned. How long before the fund business implodes? So far it's the only thing management has done that hasn't been a disaster, except keeping the dialup isp. I am so glad to not own any of this, but honestly, saddened that my initial concerns about this management were well-founded. I don't like to see people lose money or value destroyed, and both things have happened here, I'm afraid. Link to comment Share on other sites More sharing options...
fishwithwings Posted May 6, 2019 Share Posted May 6, 2019 Do you have a copy of the letter or link that you don't mind sharing? In Kiel's fund letter dated April 23rd he stated: "Now that I have been bumped up to chairman of Enterprise Diversified, our CEO Michael Bridge is the person to direct any questions that you may have about the company. The annual meeting will be a good opportunity to talk with him and the rest of senior management, and I encourage you to attend." If he was on the way out (which, I mean the SEC filing says his resignation effective April 30th!), what is up with that statement? Did his resignation come out of nowhere? "Effective April 30, 2019, G. Michael Bridge resigned from his positions as President and Chief Executive Officer of Enterprise Diversified, Inc. (the “Company”) and as a member of the Board of Directors (the “Board”) of the Company." Link to comment Share on other sites More sharing options...
InelegantInvestor Posted May 6, 2019 Share Posted May 6, 2019 Interesting what former CEO retweeted today... Link to comment Share on other sites More sharing options...
abitofvalue Posted May 6, 2019 Share Posted May 6, 2019 Why on Earth did they wait a week to announce CEO resigned? That is mighty odd imo... Just take this thing Pvt.. Link to comment Share on other sites More sharing options...
writser Posted May 6, 2019 Share Posted May 6, 2019 Interesting what former CEO retweeted today... Could be coincidence. Still, intriguing find. Link to comment Share on other sites More sharing options...
Drokos Posted May 7, 2019 Share Posted May 7, 2019 Pretty remarkable to think that new management has made the old pre-Moore management team look good. Link to comment Share on other sites More sharing options...
oddballstocks Posted May 7, 2019 Share Posted May 7, 2019 Occam's razor--this company is just a sh$tshow. No other mental gymnastics required for explanation. But Buffett...... :P I like that Braziel is involved now. A guy who specializes in liquidations, bankruptcies and winding down weird assets. Sort of lays out the future fairly clearly... Link to comment Share on other sites More sharing options...
stahleyp Posted May 7, 2019 Share Posted May 7, 2019 For the letter, I just searched for it on Google. Found this: https://finance.yahoo.com/news/arquitos-capital-management-q1-2019-033311720.html How this got posted on yahoo finance...I have no idea. Link to comment Share on other sites More sharing options...
Guest roark33 Posted May 8, 2019 Share Posted May 8, 2019 Willow Oak and the individual investment managers had a big meeting at Berkshire over the past weekend and I imagine the reason that they didn't publish the management change on the Friday before the meeting was to avoid this discussion. Sort of a joke, but what isn't with this company now. Link to comment Share on other sites More sharing options...
5xEBITDA Posted May 9, 2019 Share Posted May 9, 2019 Occam's razor--this company is just a sh$tshow. No other mental gymnastics required for explanation. I like that Braziel is involved now. A guy who specializes in liquidations, bankruptcies and winding down weird assets. Sort of lays out the future fairly clearly... I wouldn't read too deeply into this. Link to comment Share on other sites More sharing options...
NBL0303 Posted May 9, 2019 Share Posted May 9, 2019 Is anyone else surprised the stock didn't go down after this week's filings? Link to comment Share on other sites More sharing options...
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