WTF!

[premfan]

Thanks premfan for sharing the details - I have been following Sham on and off, I thought he was a great investor in the Biglari mould. His returns last year look impressive

 

Shareholder letter, pgnt going below book - opportunity to buy  ;)

 

http://pgntgroup.com/wp-content/uploads/2014/02/PGNT-2016-Letter-to-Shareholders.pdf

 

I wrote a decent length post which I deleted because its such a small startup i don't want to indirectly influence anyone's decision making process. That said, i actually want shareholders to win. Where the only winner is Sham currently heres why:

 

1.) Since Sham become ceo in 2012 shareholder equity has gone from 5.21 million to currently Q1 2016 3.578 million.

 

Yet his salary in 2012 was 110k (combo cash and stock) to 2016 of 150k.

 

2.) Negative Intrinsic Value and Book Value since 2012. Yet roughly 40 percent increase in yearly salary not including director payments and Sed salary

 

3.) Announced share buyback authorization last year yet he buys 68.58k shares at 0.85 on 6/4/15 and 67.22k at 0.89 on 6/11/15 for himself before the company shows an operating profit knowing that would increase the share price. He could of finally gave value to his shareholders by buying back shares below IV but he decided to increase his personal stake. Bad PR move. No shares bought back below IV for shareholders.

 

4.) Choosing to run a proxy on rubicon while owning only  0.1 of stock. This seems like a desperate move and someone struggling to increase earning power of pgnt. Since his biggest investment Sed is supposedly bankrupt ( he earned salary running SED). 

 

Only Winner is Sham so far. Good for his family that he has earning power. 

 

Full disclosure = no position

 

Shalab,

 

Look at shareholders equity when he become Ceo in 2012 until Q1 2016.  Net net it has not been good. That said, i'm rooting for him to create business momentum and value for his shareholders. I like success stories. I like win/win's.  Again i think he made a major mistake not buying back the 120kish shares at those prices. That would have been a great signal and would have rewarded his patient shareholders. By buying that block of shares for himself it signals that he might be paranoid about control.  Also is the 0.1 percent ownership activist campaign a new normal? I believe Swenson tried his on Sardar and got exposed and shamed during a recent annual meeting. He might want to get his 50.1 percent ownership soon then. Since anyone that owns roughly 3,400 dollars in pgnt can run an activist campaign against pgnt. To get there hands on the 1.9 million in cash. That said, good luck Shalab and pgnt shareholders. Premfan out ( my homage to Kobe).

[wabuffo]

His returns last year look impressive

 

Where are you seeing that? 

 

wabuffo

[OracleofCarolina]

http://pgntgroup.com/wp-content/uploads/2017/05/Letter-to-Shareholders.pdf

 

anyone still following this company?

[eclecticvalue]

The P/E ratio is insane. It is trading slightly below book value. For SED Columbia is the net profit figure in dollars? Because if they can turn around the other two companies. PGNT shares will be worth a lot more.

[frugalchief]

Q2 Results Out.

 

News Release - http://pgntgroup.com/wp-content/uploads/2014/02/Press-Release-Q2-2017-FINAL.pdf

 

Report - http://pgntgroup.com/wp-content/uploads/2014/02/2017-Q2-Final.pdf

 

First full quarter with inclusion of SED Columbia.

 

Selling for almost 1/3 BV.

 

Anyone else watching this?  Curious if anyone has attended the annual meeting before?

[sjh]

You don't see a low valuation like this very often. However when I had a look at the cashflow statement I was quite disappointed as cash flow is very low compared to earnings. So you really have to trust the CEO that the value on the balance sheet is actually there and will materialize in the future.

 

By reading those reports I don't get the impression that his track record with buying private companies is very good. Maybe he should stick to buying securities.