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FRMO - FRMO Corp.


Guest hellsten

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  • 2 weeks later...

With you completely Merkhet!  I wish Murray would explain why he feels the stock is so undervalued that he doesn't want to dilute himself with acquisitions using stock.  Love the company and the management but boy is it richly valued by any metric right now.

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Yea, the only way you could still hold it here in my opinion is if you believe that you will hold it for over 10 years and just end up getting the returns that the company makes over that time.  I am holding some, but it is no fun as I also think it is pretty expensive. 

 

I am really curious why they did a 5 million private placement at like 2.50 or something and now are saying that they don't want to dilute themselves.  Seems like there has to be something out there they could find with a low multiple that they could be with their expensive stock. 

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  • 2 weeks later...

WOW.

 

I've been missing out on FRMO!

 

I can understand where Murray stands from. RIA businesses (separately managed accounts) are extremely profitable businesses. The moment you scale your business up, your fees increase along with it. Not to mention, if you earn an adequate return on those assets, your fees increase proportionally to the growth.

 

10% asset growth + 10% asset return = roughly 20% return, and obviously, the numbers could scale even faster.

 

I'm still researching more, but these are probably obvious numbers to readers of this thread. Just giving a little more insight as I manage my own RIA.

 

 

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  • 3 weeks later...
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  • 1 month later...

A young portfolio manager of Horizon Kinetics was elected on the board of Winland in 2013 along with another young fund manager:

 

Thomas R. Braziel serves as a Director and Co-Chairman of the Board of Directors. He is the Founder and a Managing Partner in B.E. Capital Management, an investment partnership which invests in small and micro-cap companies and securities. Mr. Braziel is also the Founder and Managing Partner of Campden Grove Capital, a family investment partnership which was created to leverage opportunities from small company bankruptcies. Prior to his current positions with B.E. Capital Management and Campden Grove Capital, Mr. Braziel was a Quantitative Financial Analyst in 2011 with Hellespont Ship Management. Prior to that, Mr. Braziel was an Economist in the Transfer Pricing and Economic Consulting Group of Thomson Reuters from 2007 to 2009. Mr. Braziel holds a Masters in Mathematics of Finance from Columbia University and a B.A. from New York University. Mr. Braziel is one of the Company’s largest shareholders and his experience with analyzing and investing in small and micro-cap companies make him qualified to serve on the Company’s Board of Directors.

 

Matthew D. Houk serves as a Director and Co-Chairman of the Board of Directors. He is a Portfolio Manager at Horizon Kinetics LLC, an investment management services firm. Mr. Houk has been with Horizon Kinetics since August 2008. Mr. Houk is responsible for identifying, analyzing and monitoring investment opportunities and portfolio companies for Horizon Kinetics. Previously, Mr. Houk was with Goldman, Sachs & Co., an investment bank, which he joined in August 2005. Mr. Houk holds a B.A. from Yale University. Through his work in investment management, Mr. Houk brings to the Board of Directors an ability to assess and oversee corporate and financial performance. Mr. Houk is one of the Company’s largest outside shareholders and has experience as an investor and an understanding of the methods by which companies may unlock value for their shareholders.

 

http://www.winland.com/documents/2014ProxyStatement.pdf

 

Since then the company went dark so its basically anyones guess what´s going on there as there isn´t much reporting anymore:

http://www.startribune.com/business/260458331.html

http://ragnarisapirate.blogspot.com/2014/03/differences-in-types-of-bad-governance.html

 

Recently, two big shareholders, Karen and Brian Hirschman sold their shares. It turns out the majority of those shares where bought by FRMO.

http://www.winland.com/sec_filings.html

 

That Braziel fellow is definitely very interesting...

http://ragnarisapirate.blogspot.com/2013/02/fraud-bankruptcy-and-ethanex.html

http://www.becapitalmanagement.com/uploads/2/6/7/4/26748813/interview_with_chris_demuth_jr..pdf

(BTW, thanks for the resources Jeff and Chris)

 

Edit:

A question for the board: Would FRMO working in a consortium with Houk allow Winland to keep the NOL´s despite FRMO being a new +5% owner?

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