Author Topic: SYTE - Enterprise Diversified  (Read 217454 times)

sarganaga

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Re: SYTE - Enterprise Diversified
« Reply #680 on: April 03, 2019, 12:32:43 PM »
Iíve seen a lot of crazy stuff in small caps.  But Iíve never seen a situation where a company acquires assets from the chairman, and then those assets get written down just months later (while heís selling his stock?).  And this wasnít some minor deal like buying the chairmanís car: they acquired something like $12 million in RE against beginning equity of $16 million. 

Iím surprised the shareholder lawsuit firms havenít showed up yet.  Youíd think stuff like this would be red meat for that crowd.

It certainly doesnít help to win new customers for the asset management business, thatís for sure.

When you consider the original premise for the change in control/management, the very insider friendly, discount to market raise of capital, operational failures, related party transactions, not much looks very beneficial to the common shareholder.


fishwithwings

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Re: SYTE - Enterprise Diversified
« Reply #681 on: April 03, 2019, 09:20:40 PM »
I canít believe how complicated the financial statements have become...

roark33

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Re: SYTE - Enterprise Diversified
« Reply #682 on: April 05, 2019, 10:54:07 AM »
"And in November 2018, we signed our first external FMS customer, Arquitos Capital."

So much for shooting straight--this fund isn't an external customer.  Geesh....

https://www.otcmarkets.com/filing/conv_pdf?id=13335472&guid=4V03Up6bWYUdz3h
« Last Edit: April 05, 2019, 10:55:52 AM by roark33 »

NoCalledStrikes

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Re: SYTE - Enterprise Diversified
« Reply #683 on: April 05, 2019, 12:16:17 PM »
"And in November 2018, we signed our first external FMS customer, Arquitos Capital."

So much for shooting straight--this fund isn't an external customer.  Geesh....

https://www.otcmarkets.com/filing/conv_pdf?id=13335472&guid=4V03Up6bWYUdz3h

In the context of the paragraph, I took "external" to just mean a non-ENDI managed fund. In the press release on the transaction last year, the term was "independently run". Frankly, I'd be more concerned if Steve didn't want to use ENDI's back office service for his fund.

roark33

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Re: SYTE - Enterprise Diversified
« Reply #684 on: April 12, 2019, 09:59:26 AM »
I am not sure of the lock-ups on this, but Kiel's fund is going to show a huge decline in its returns given the share price decline.  I wonder what will happen if Kiel has to sell.  This could get even uglier than it already is. 

Tim Eriksen

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Re: SYTE - Enterprise Diversified
« Reply #685 on: April 12, 2019, 12:29:52 PM »
I am not sure of the lock-ups on this, but Kiel's fund is going to show a huge decline in its returns given the share price decline.  I wonder what will happen if Kiel has to sell.  This could get even uglier than it already is.

While Kiel's fund could incur some redemptions, I would question your assumption of a huge decline.  SYTE was 29% of Arquitos at year end.  It has declined 37%, negatively impacting the portfolio by 11% (29% times -37%).  The rest of the portfolio (MMAC, WED.V, ALJJ, BOMN, BRK options) is likely up say 12%.  That would mean positive contribution of 8 percentage points (if we assume 5% cash, then the other 66% has risen by 12%. 66% times 12% = approx. 8%).  So overall return as of today is likely minus 2 to 3%.  Huge under performance but not a huge decline.  Nearly all of STYE's decline is post March 31 so investors will not even see it in their statements until April month end (approx. May 10).   

Secondly assuming SYTE has an insider trading policy it would likely mean any window is closed until after earnings (mid May).   

All else equal SYTE would have declined from 29% of the fund to under 20% due to its decline.  If there were redemptions he could sell other holdings and allow SYTE to move back up as a % of the fund.

valueyoda

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Re: SYTE - Enterprise Diversified
« Reply #686 on: April 20, 2019, 10:01:29 AM »
It will be very hard for SYTE to overcome the SG&A burden as a small company with limited prospects of revenue growth. Therefore, a substantial price re-evaluation of the stock will be unlikely. It is even more likely that the stock will trade at a discount to adjusted book value going forward with the current problems facing the company. Also unsure whether this stock can absorb any large selling by large holders.

Especially since we are getting closer toward the end of the economic cycle and with current market valuations, large upside from stakes in associated funds seems less likely.

Tim Eriksen

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Re: SYTE - Enterprise Diversified
« Reply #687 on: May 06, 2019, 02:06:19 PM »
further changes happening.  CEO, COO and a board member resign.  Kiel back as CEO.  Thomas Braziel joining board.

https://www.sec.gov/Archives/edgar/data/1096934/000143774919008844/syte20190505_8k.htm



Broeb22

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Re: SYTE - Enterprise Diversified
« Reply #688 on: May 06, 2019, 02:31:52 PM »
Wow. What is going on? Feels like complete chaos.

stahleyp

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Re: SYTE - Enterprise Diversified
« Reply #689 on: May 06, 2019, 02:54:22 PM »
In Kiel's fund letter dated April 23rd he stated:

"Now that I have been bumped up to chairman of Enterprise Diversified, our CEO Michael Bridge is the
person to direct any questions that you may have about the company. The annual meeting will be a
good opportunity to talk with him and the rest of senior management, and I encourage you to attend."

If he was on the way out (which, I mean the SEC filing says his resignation effective April 30th!), what is up with that statement? Did his resignation come out of nowhere?

"Effective April 30, 2019, G. Michael Bridge resigned from his positions as President and Chief Executive Officer of Enterprise Diversified, Inc. (the ďCompanyĒ) and as a member of the Board of Directors (the ďBoardĒ) of the Company."
« Last Edit: May 06, 2019, 02:58:31 PM by stahleyp »
Paul