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SODI- Solitron Devices


ragnarisapirate

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Who lives near the Solitron headquarters? (Florida as far as I can remember) Would be a shame if after all the harrassing nobody is actually going to the meeting .. I'd go, but I live in the Netherlands and would rather spend the money on more shares instead of an airplane ticket :) If nobody lives near, maybe we can pool some resources to send a forum representative to take notes and ask some questions.

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I'd be interested in going.  Don't know if I could justify it for my position size.  Though I may increase that.

 

I'd be interested in sending nominee(s) as well.  Though I think if we are considering that, we need to become more organized, and agree upon a specific agenda to push prior to sending.  We should probably determine how many shares within our "block" for voting purposes, and in determining the nominee(s) their level of personal investment should be considered. 

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A follow up question to the recent developments:

 

Does anyone know more details regarding the share repurchase? Who was the private party? I'm assuming it was one of the majority shareholder/executives...does anyone have more detailed info?

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A follow up question to the recent developments:

 

Does anyone know more details regarding the share repurchase? Who was the private party? I'm assuming it was one of the majority shareholder/executives...does anyone have more detailed info?

 

Even though it isn't material info at this point, I would guess that the only people that know about it are the sellers and Saraf. So, good luck finding out. I am guessing that it was not the Lauriston group though, as the shares were repurchased on Aug 31st, and they didn't amend their 13G until late September...

 

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8839347-1461-18529&type=sect&TabIndex=2&companyid=5452&ppu=%252fdefault.aspx%253fcompanyid%253d5452

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Just want to offer my congratulations on what you guys have achieved so far. It will be very interesting to follow this one.

 

Seems to me that if the board acted on both the buybacks and the annual meeting, then they clearly are willing to listen to their minority partners.

 

Was the shareholders rights plan adopted because of you guys?

 

I skimmed through the AoI,  the by-laws and the last 10-K. It surprised me that there are only 2 directors besides Saraf. Those two have been there since 1996 and the in the 10-K it says: "The term of each Director has expired. Each Director shall continue in office until his successor is elected at the next annual meeting of stockholders."

 

I only glanced through the documents, so I did not find how many directors there can (could you propose adding an additional director?) be according to the AoI or how the voting procedure would be (how many votes would you need to be elected?).

 

Best of luck to you guys.

 

EDIT: Just read the post by valueprox about his dealings with Saraf, guess he´s not that friendly after all... but still, that only makes it more impressive that you guys forced a change.

http://valueprax.wordpress.com/2012/09/26/my-bizarre-treatment-at-the-hands-of-solitrons-board-sodi-corpgov/

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  • 2 weeks later...
On October 29, 2012, Solitron Devices, Inc., its affiliates, agents and representatives (collectively, the "Company") entered into a Settlement Agreement and Release (the "Agreement and Release") with the Police and Fire Retirement System of City of Detroit, its affiliates, agents and representatives (collectively, "PFRS"). In connection with the Company's bankruptcy, in 1993, the Company was ordered to pay PFRS a total of $1,056,226.85 over time in connection with an unsecured claim against the Company. As of the date of the Agreement and Release, the Company has paid PFRS an aggregate of $359,653.27. Pursuant to the Agreement and Release, the Company will pay PFRS a lump sum payment of $475,000.00 within ten days of the Agreement and Release in full and final satisfaction of PFRS' unsecured claim against the Company. The Agreement and Release also provides for mutual releases among the parties.

 

Solitron cleaning up the balance sheet. Based upon his actions I can only appreciate mr. Saraf. He might not be the best PR guy in town, he might be too conservative for some shareholders but he appears to be good at managing a small business.

 

Slightly off-topic, but Mod-Pac (MPAC) was another small business that popped up in several NCAV screeners. Management recently offered to take the company private at a small premium. Any shareholders here?

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On October 29, 2012, Solitron Devices, Inc., its affiliates, agents and representatives (collectively, the "Company") entered into a Settlement Agreement and Release (the "Agreement and Release") with the Police and Fire Retirement System of City of Detroit, its affiliates, agents and representatives (collectively, "PFRS"). In connection with the Company's bankruptcy, in 1993, the Company was ordered to pay PFRS a total of $1,056,226.85 over time in connection with an unsecured claim against the Company. As of the date of the Agreement and Release, the Company has paid PFRS an aggregate of $359,653.27. Pursuant to the Agreement and Release, the Company will pay PFRS a lump sum payment of $475,000.00 within ten days of the Agreement and Release in full and final satisfaction of PFRS' unsecured claim against the Company. The Agreement and Release also provides for mutual releases among the parties.

 

Solitron cleaning up the balance sheet. Based upon his actions I can only appreciate mr. Saraf. He might not be the best PR guy in town, he might be too conservative for some shareholders but he appears to be good at managing a small business.

 

Slightly off-topic, but Mod-Pac (MPAC) was another small business that popped up in several NCAV screeners. Management recently offered to take the company private at a small premium. Any shareholders here?

 

 

Things to consider...

 

This was a liability that carried NO interest. Yes, the company did settle it for a lot less than it's face value, but if you discount their payments to the present, savings aren't nearly what they appear to be. They would have been better off letting the cash sit in treasuries.

 

That said, I am not overly upset by the move, but, there are better things that he could have done. my envelope tells me that they are down to ~$300K in BK liabilities at the moment.

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Done some quick math.

 

Total prepetition liability: 988K

Repayment rate: 28K/year (will take ~35 years to pay)

Average weighted maturity ~18years

US Gov Bond yield for this maturity ~2.4%

 

NPV of 988K liability using 2.4% discount rate => 652K

 

They repaid ~70% previous month, NPV of that part would be: 460K

 

That is very close to the 475K Solitron paid, and seems a fair price to me.

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Done some quick math.

 

Total prepetition liability: 988K

Repayment rate: 28K/year (will take ~35 years to pay)

Average weighted maturity ~18years

US Gov Bond yield for this maturity ~2.4%

 

NPV of 988K liability using 2.4% discount rate => 652K

 

They repaid ~70% previous month, NPV of that part would be: 460K

 

That is very close to the 475K Solitron paid, and seems a fair price to me.

 

No doubt, it is a fair price, however, I would have rather the money gone to buying back shares (which are still very undervalued). OR, paying a dividend- I can get better deals than what they got on that note. For me, it is simply a matter of opportunity cost of the cash they used, vs what they could have used it on.

 

That said, there is a perception of them paying it down and getting it off the books that is also valuable.

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  • 3 months later...
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This is great, I can't believe I got the ball rolling on this thing and it's finally happened!

 

I'll be there for sure, my wife and I are planning on going down for a few days of relaxing on the beach.  I'm surprised to see this is in Miami not at their plant in West Palm Beach.  Our hotel is in West Palm, so it'll be a bit of a drive, but worth it for sure.

 

I wonder how many people the conference room at the law offices can sit?  It might be a little cramped in there!

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Now that we have a date and time it's probably worth getting the idea floating around of a shareholder lunch.  I've been thinking it might be nice to get together somewhere in Miami right after the annual meeting where anyone who attends can meet and talk Solitron and other undervalued nano-cap stocks.

 

I've spent a lot of time in West Palm Beach, but never ventured down to Miami.  Any good places to eat that could accommodate a semi-large group of people?

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I wonder how many people the conference room at the law offices can sit?  It might be a little cramped in there!

I have no idea how many people intent to show up, and I guess that they have no idea either. Hard to make a guess if you haven't had a shareholder meeting in decades... Hopefully we'll see a nice group of value investors turn up. Unfortunately Miami is 8000 kilometers away from were I live, so doubt that I'll be there...

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