Author Topic: SYTE - Enterprise Diversified  (Read 222157 times)

Spekulatius

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Re: SYTE - Enterprise Diversified
« Reply #720 on: May 28, 2019, 03:12:34 PM »
Sitestar (Enterprise Diversified) sold its HVAC operations in Arizona.  They will receive a revenue royalty over the next five years.

https://finance.yahoo.com/news/enterprise-diversified-announces-sale-home-211600304.html

Good move. I think HVAC was bought for roughly $2M and I guess the royalty stream is probably going to bring in $0.5-0.7M (a cumulative of 0.275x revenues, but those have been dropping rapidly), so I estimate a $1.3M-1.5M writeoff. Still better than nothing and the company needs to cash.
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InelegantInvestor

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Re: SYTE - Enterprise Diversified
« Reply #721 on: May 28, 2019, 04:17:47 PM »
Sitestar (Enterprise Diversified) sold its HVAC operations in Arizona.  They will receive a revenue royalty over the next five years.

https://finance.yahoo.com/news/enterprise-diversified-announces-sale-home-211600304.html

Good move. I think HVAC was bought for roughly $2M and I guess the royalty stream is probably going to bring in $0.5-0.7M (a cumulative of 0.275x revenues, but those have been dropping rapidly), so I estimate a $1.3M-1.5M writeoff. Still better than nothing and the company needs to cash.

Zero cash upfront. I think your estimate of royalty stream is too high as well. Good that they're out of this disaster but even in the PR about it, there's no acknowledgement that this investment was disappointing. No contrition. No reflection. No discussion of how this impacts financials. Implies that it's all great and they're doing this so they can focus on Willow Oak.


roark33

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Re: SYTE - Enterprise Diversified
« Reply #722 on: May 28, 2019, 04:20:05 PM »
This is totally like Buffett since his first investment in Berkshire Hathaway was a total disaster and mistake.  You can't be like Buffett if you don't make a horrible first investment. They should really change their ticker to HVAC to remind themselves of this point. 

LowIQinvestor

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Spekulatius

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To be a realist, one has to believe in miracles.

rkbabang

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Re: SYTE - Enterprise Diversified
« Reply #725 on: June 10, 2019, 08:01:19 AM »
They should really change their ticker to HVAC to remind themselves of this point. 
 

That would be great.  Maybe some of us shareholders should get together to get the ticker change on the next proxy ballot.  A hostile takeover of the ticker symbol.

oddballstocks

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Re: SYTE - Enterprise Diversified
« Reply #726 on: July 03, 2019, 01:12:32 PM »
The ultimate edge for bank investors: http://www.completebankdata.com

gfp

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Re: SYTE - Enterprise Diversified
« Reply #727 on: July 03, 2019, 01:28:44 PM »
I had not seen that yet.  They really seem gifted at turning millions of dollars into thousands of dollars.

Surprised no one is talking about this: https://www.sec.gov/Archives/edgar/data/1096934/000143774919013461/syte20190703_8k.htm

writser

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Re: SYTE - Enterprise Diversified
« Reply #728 on: July 03, 2019, 01:29:13 PM »
Well done. Buy it for $3.5m in December 2017, sell 65% for $100k in July 2019. Also props for a well-timed July, 3 after hours filing.
« Last Edit: July 03, 2019, 01:58:11 PM by writser »
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gfp

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Re: SYTE - Enterprise Diversified
« Reply #729 on: July 03, 2019, 01:45:56 PM »
I was trying to figure out why he thought Woodmont Lexington was Jeff.  Who knows who it is, its a Delaware LLC registered to an incorporation service's address.  I guess when they say unaffiliated 3rd party that's what they mean