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PRLS - Peerless Systems


ragnarisapirate

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I've been reading a bit about the fight. Apparently, they are trying to get a couple board seats on MLNK. The guys running Peerless is a former money manager and MLNK says that he is running a hedge fund against SEC regulations. Pretty entertaining stuff.

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Pretty interesting situation, but looks kind of speculative at current price. At $3.75 PRLS is trading around book value as of 10/31 although MLNK is up about 35% since then so probably trading at about 10% discount to current BV. So seems like it is just a bet that Brog can find more activist targets as the IP licensing runs off. Also seems like he is trying to start an asset management business out of Peerless, so if that works out I guess they would have a revenue stream from the fees as well.

 

Valueslant

valueslant.com

 

 

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Pretty interesting situation, but looks kind of speculative at current price. At $3.75 PRLS is trading around book value as of 10/31 although MLNK is up about 35% since then so probably trading at about 10% discount to current BV. So seems like it is just a bet that Brog can find more activist targets as the IP licensing runs off. Also seems like he is trying to start an asset management business out of Peerless, so if that works out I guess they would have a revenue stream from the fees as well.

 

Valueslant

valueslant.com

 

Yeah, it almost seems like a smaller version of BH, but without the restaurants and real estate... Yet, it trades at a discount like a closed end fund might.

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I owned Neutral Tandem (TNDM) in 2010. If I remember correctly Peerless Systems had a patent lawsuit against them. I looked into Peerless while researching the suit. I agree that they are basically a holding company. My experience with these type of investments is it is hard to make a buck in their line of work. They collect some money from patents, but lawsuits are needed to bring in more money. There are better investments that don't rely on the law to generate profits.

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  • 2 years later...
  • 6 months later...

Does anyone know anything about the large amount of transactions in the cash flow statement?

 

http://investingsidekick.com/peerless-systems-nasdaqprls/

 

I remember seeing that...who knows.  Was Brog day-trading?  That's a ton of buying/selling based on cash.

 

I know it's 2 months old, but they finally sold out of MDLS, business still isn't pretty...http://goo.gl/2lK9O4

 

 

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  • 3 months later...

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