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SODI- Solitron Devices


ragnarisapirate

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I have reviewed the presentation and honestly, I have never seen anything as bad as that. I have seen poor corporate governance and abuse but, this is well over the top and wonder how he got away with it. This looks illegal isn't? Conrad Black and Dennis Kozlowski were angels compared to that man!

 

Now, the company has only a $9.5 million market cap and a ton of cash on the balance sheet. Why not going for a 51% take-over offer at something like a 30% premium? I have not reviewed how many shares Tim and others control but, how much more do you need to reach that threshold? Who are the other holders who have accepted this bad treatment for years?

 

On the other hand, this may not suffice considering what this guy has done historically. He may resort to have the company give him such a golden parachute that this would become impractical.

 

Anyway, good luck with your fight guys and hope you are successful. However, I am afraid that you may have to sue to force him to lose his power or similar to what Tweedy Browne did with Conrad Black.

 

Cardboard

 

 

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Tim, did you consider contacting media about the proxy battle? I work as a business journalist (Europe though) and have followed from the sideline, but I do think it's a very good "story" that I'd do in a flash if it was relevant for our readers. The small size of Solitron is the only issue but then again it could be one part of a bigger piece on shareholder activism/abuse. You already did most of the research and layed it out there. Local media where Solitron employ people is one option, nationwide media another since there are so many fascinating aspects in this utterly grotesque story.

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http://www.sec.gov/Archives/edgar/data/91668/000135448815003431/sodi_defa14a.htm

 

Solitron is actively engaged in a few potential value-adding takeover deals that could be transformative for the company. Not only would a deal increase the revenue and cash flow signficantly, diversify its revenue and customer base, but it would allow Solitron to fully utilize its NOLs within 3-4 years and provide a deep management bench that could replace Saraf eventually without having to worry about succession plans.

 

In addition, Solitron will create a shareholder advisory committee composed of delegates from investor groups that hold more than 100.000 shares. This solidifies the shareholder position in the future, even beyond a board seat win by Tim Eriksen, or my involvement with the company.

 

 

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Is there anyone here, that is actually voting for management in light of recent events?

 

I can't imagine...

 

Management has been doing shareholder unfriendly things for literally decades. The fact that they might lose their spots is causing them to project change, but that doesn't seem as good as actual change. Sure, if the CEO gets replaced (not likely with only two activists on the BOD) that might affect operating performance, but this seems like the type of business where you could find a competent manager to run it.

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Has anyone heard anything about the meeting yesterday? Vote results or any other worthwhile news?

 

Seem to have a lot of the large holders represented on this board....someone must have been there or have some news?

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The scale of that win suggests that management will need to work with Tim/David. They received approximately twice as many votes as managements nominees, suggesting that if they're not happy they would likely win more seats next year.

 

Also, (and a bit pedantically) I'm curious who voted 2 shares for Tim but withheld them for David. That seems odd to me.

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