Christopher1 Posted November 12, 2009 Share Posted November 12, 2009 I was reading the latest OICO 10Q, it seems that Linnartz it's pushing the company to a different strategic direction partially similar to what Sardar has done with WEST and SNS. Maybe my interpretation is wrong, but it will be interesting to see how this company will evolve. From OICO 10Q: "We are in the process of implementing a change in strategic direction under which we will begin to operate in a manner designed to emphasize cash flow. Our long-term objective is to maximize our intrinsic business value per share of common stock. (Intrinsic value is computed by taking all future cash flows into and out of the business and then discounting the resultant number at an appropriate interest rate.) Thus, our financial goal is to maximize free cash flow and return on invested capital. We regard capital allocation as immensely important to creating shareholder value. The basic premise of our new strategy is to reinvest cash generated from our operations into investments with the objective of achieving high risk-adjusted returns. These investments may span a broad spectrum, including acquisitions of product lines, companies, or other assets. In addition, due to current low interest rates, we will consider longer-term debt options to raise additional cash using some of our assets as collateral. Our Board has established an investment committee consisting of two independent directors and our CEO/CFO who will make decisions regarding investment and other capital allocation decisions." Link to comment Share on other sites More sharing options...
Parsad Posted November 12, 2009 Share Posted November 12, 2009 Yes, looks like they are headed in the right direction. John is a smart fellow, and if management works with him, then they will be able to allocate capital into areas that generate a higher return on investment. Cheers! Link to comment Share on other sites More sharing options...
Parsad Posted November 12, 2009 Share Posted November 12, 2009 I should also mention that Ray Cabillot, CEO and CFO of Farnam Street Partners owns about 14% of OI Corp. Along with John's 12.7%, they control 26.7% of OI Corp, so it should be pretty easy to implement a business plan focusing on increasing shareholder value. Cheers! Link to comment Share on other sites More sharing options...
bargainman Posted November 13, 2009 Share Posted November 13, 2009 Who exactly is this Farnam St Capital? Did some googling but didn't find anything too interesting other than this: http://people.forbes.com/profile/raymond-e-cabillot/59349 Does anyone have more info on these guys? Are they active investors? Are they looking to turn this into a holding company? Mustang's SNS within SNS? Link to comment Share on other sites More sharing options...
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