Author Topic: SYTE - Enterprise Diversified  (Read 210558 times)

InelegantInvestor

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Re: SYTE - Sitestar
« Reply #60 on: December 04, 2015, 11:11:00 AM »
Hindsight is always much easier, so I'll try to thread carefully here. No position here, ever.

It seems to me that at this point the thesis is essentially a bet on management being replaced (or strongly influenced) in the not-too-distant future, otherwise the value will likely never be realized for shareholders. So I would suggest determining the likelihood of such a scenario occurring, or the willingness into taking and paying for legal action to uphold the rights of minority shareholders (and the costs of doing so versus the potential reward).

Otherwise, while this is indeed legally a company with assets currently worth something, it is not a business you can invest in with any margin of safety. Surely I'm missing information, but the downside unfortunately looks like a zero as a scenario involving costly legal actions cannot be excluded. Might as well bet it all on red.

Put otherwise: would you buy this again today? if not, it may be worth asking why you're staying long, which is essentially the same thing. Best of luck either way.
In an illiquid investment, I'm not sure that would I buy it again is symmetrical. Buying a stake of this size would push the price up meaningfully, while selling would push it down.

I do believe that a management change in the next 6 months is likely, or at least that current management will be forced to change strategy. But, like you said, hindsight is much easier. I like my odds right now, but I'd certainly be sweating if this was a huge % of my assets.


InelegantInvestor

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Re: SYTE - Sitestar
« Reply #61 on: December 15, 2015, 10:45:23 AM »
CEO is out, $900,000 lawsuit is settled. Steven Kiel of Arquitos is Interim CEO:
http://www.sec.gov/Archives/edgar/data/1096934/000072174815000888/site8k121515ex99_1.htm

fareastwarriors

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Re: SYTE - Sitestar
« Reply #62 on: December 15, 2015, 11:02:07 AM »
Whoa! The shareholders can fight back!

rkbabang

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Re: SYTE - Sitestar
« Reply #63 on: December 15, 2015, 11:19:51 AM »
That is great news!   A new CEO (interesting they appointed Steven Kiel rather than Moore) and getting rid of that $900K that was hanging over the company's head for far too long.

DTEJD1997

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Re: SYTE - Sitestar
« Reply #64 on: December 15, 2015, 11:24:12 AM »
That is great news!   A new CEO (interesting they appointed Steven Kiel rather than Moore) and getting rid of that $900K that was hanging over the company's head for far too long.

Jeff Moore may not have wanted that position...he has substantial real estate holdings outside of SYTE's market....

Very good news indeed.  It will be interesting to see what happens.  That $900k is a huge deal for the company.

oddballstocks

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Re: SYTE - Sitestar
« Reply #65 on: December 15, 2015, 11:40:29 AM »
Wow, Steve running the company now, great news!  Time to look at buying some shares..
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Sportgamma

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Re: SYTE - Sitestar
« Reply #66 on: December 15, 2015, 11:41:45 AM »
Well done!

bci23

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Re: SYTE - Sitestar
« Reply #67 on: December 15, 2015, 12:46:53 PM »
anyone have any thoughts on this statement:

"The board has further agreed to engage legal counsel to lead an investigation to determine the appropriateness, scope, and nature of certain related-party transactions involving Mr. Erhartic"

no_thanks

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Re: SYTE - Sitestar
« Reply #68 on: December 15, 2015, 01:28:54 PM »
Probably the loan from his mom that inelegant investor pointed out, right?

ratiman

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Re: SYTE - Sitestar
« Reply #69 on: December 15, 2015, 03:57:07 PM »
Wow, I was 100% wrong on this one. Really surprised that a guy would voluntarily give up control, though he was paying himself just $50,000. Good luck to the longs.