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SIC - Select Interior Concepts


whatdadil9

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Read the letter but have not done any work beyond that. Assuming the comps are even remotely appropriate, the SOTP discount is absurd. The tone of the letter is rather caustic, perhaps deservedly so, though I wonder if management will be receptive to that approach. I have this on my list for my attention, and I would like to know how entrenched the management/board are, or if shareholders are just stuck with the status quo and therefore the stock will trade at a heavily discounted valuation given the corporate governance issues.

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To wit:

 

"We cannot reward SIC's atrocious performance by reappointing this Board and allowing it to make equity awards that dilute shareholders who have suffered at this Board and Management Team's hands! Remember, you need to NOT VOTE and need to instruct your broker NOT TO VOTE. Per the proxy statement, both abstaining or "voting no" will let SIC obtain a quorum. As such, please discard your proxies in the garbage, much like the Board and Management Team have treated shareholders, and let's send SIC an unequivocal message at our meeting in Atlanta! "

 

The needling seems ironic (even counter productive) in the sense the letter makes clear the management team cannot seem to be bothered to engage with shareholders productively. Thus, I do not see how this aggressive approach is likely to be fruitful. Unless ADW is successful in preventing a quorum, it seems like the main purpose of this letter is public humiliation of the management team/BoD. 

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... suspect he tried to reach out first and get one or more board seats. This failed, so given schedule (probably unable to nominate alternative), he now hopes that he can prevent a quorum. If not, then stuck with that board for another year ....

 

Thus seems to me a bet on whether they'll achieve a quorum, because I expect the chances will be slim they engage with him after they have been re-elected.

 

Thoughts?

Thanks!

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... suspect he tried to reach out first and get one or more board seats. This failed, so given schedule (probably unable to nominate alternative), he now hopes that he can prevent a quorum. If not, then stuck with that board for another year ....

 

Thus seems to me a bet on whether they'll achieve a quorum, because I expect the chances will be slim they engage with him after they have been re-elected.

 

Thoughts?

Thanks!

Don't know if it's about the board seat as much as it's about stirring the pot?

 

ADW's comps don't quite match... SIC doesn't get love partly b/c of its size and partly b/c of the means by which it went public. 

 

That mgmt has shown itself unprofessional is material.  There is risk here but I doubt that ADW would buy that much stock without making sure the sales figures aren't in some way bogus?  Then again, he might put more trust in the accountants and auditors than he should have?

 

My guess is that ADW aims to replace mgmt similar to what he achieved at PAR and the timing of his investment was a little late to make the meeting...

 

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  • 1 month later...
  • 4 weeks later...

Yes. the Company put up solid financial results and a strategic alternatives with the most reputable name in building products banking.. Does this make any sense?

 

Their stone business is 75 pct repair and remodel and is a site,wso, pool comp... and basically covers the EV and then some.. RDS should be comped to IBP / BLD which are taking out new 52 wk highs... Does this make sense to anyone here?

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Yes. the Company put up solid financial results and a strategic alternatives with the most reputable name in building products banking.. Does this make any sense?

 

Their stone business is 75 pct repair and remodel and is a site,wso, pool comp... and basically covers the EV and then some.. RDS should be comped to IBP / BLD which are taking out new 52 wk highs... Does this make sense to anyone here?

 

this probably makes sense though I think it will take time for others to warm up?

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