wachtwoord Posted July 12, 2016 Share Posted July 12, 2016 Anyone else interested in SPRS can confirm my above post? Am I interpreting this correctly? Isn't 15% dilution in share incentive in a single share extremely excessive abuse of shareholder funds? Link to comment Share on other sites More sharing options...
NeverLoseMoney Posted December 22, 2016 Share Posted December 22, 2016 Activists Bradley Rexroad and Michael Tofias have reached an agreement with the company: http://www.businesswire.com/news/home/20161222005378/en/Surge-Components-Reaches-Agreement-Investors-Bradley-Rexroad SPRS will repurchase at least 5.0 million shares at $1.43 per share. Activists will participate with their entire stake and management will not participate. One new independent director will be added to the board. Company will be reincorporated from Nevada to Delaware and the board will be declassified. Link to comment Share on other sites More sharing options...
oddballstocks Posted December 22, 2016 Share Posted December 22, 2016 Activists Bradley Rexroad and Michael Tofias have reached an agreement with the company: http://www.businesswire.com/news/home/20161222005378/en/Surge-Components-Reaches-Agreement-Investors-Bradley-Rexroad SPRS will repurchase at least 5.0 million shares at $1.43 per share. Activists will participate with their entire stake and management will not participate. One new independent director will be added to the board. Company will be reincorporated from Nevada to Delaware and the board will be declassified. Wow, quite the news! Great work for Brad and Mike. Management knew they were toast and kept pushing the election back. Looks like they finally caved. Link to comment Share on other sites More sharing options...
InelegantInvestor Posted December 22, 2016 Share Posted December 22, 2016 Great outcome. Also impressive that Brad and Mike wouldn't take a deal that didn't benefit all the shareholders. Link to comment Share on other sites More sharing options...
TBW Posted December 22, 2016 Share Posted December 22, 2016 Their hardwork certainly paid off. I have a lot of respect for guys like Brad and Mike. Not easy fighting management, lots of personal expense as well. But in the end they got a great deal for shareholders and was a homerun investment for both of them. Question, can management reverse all the positive corp governance steps in the future? They will own >50% and only have one independent director, so not sure what stops them. I wonder where this trades after tender. You still have a company earning 1mil a year with overpaid management and only 5mil shares. If trades at 8 pe would $1.60. There will be a management haircut to the shares post tender, but is that a pe of 6, 8 or 10? I think some of that depends on who is the director. Link to comment Share on other sites More sharing options...
rukawa Posted December 23, 2016 Share Posted December 23, 2016 If you expect a double on this, they will either have to change some things, or your hoping to sell it to some bigger idiot. Looks like they did change some things and this is going to be a double or maybe even a triple. Link to comment Share on other sites More sharing options...
NeverLoseMoney Posted December 23, 2016 Share Posted December 23, 2016 One thing I'm wondering about: Surge deregistered with the SEC in 2004 and then re-registered in 2010. Does anyone know why they registered with the SEC again at that time? This dark period is what created the real bargain prices for this stock as it traded for $0.03 - $0.08 for much of this time. Link to comment Share on other sites More sharing options...
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