Author Topic: SYTE - Enterprise Diversified  (Read 196674 times)

Jurgis

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Re: SYTE - Enterprise Diversified
« Reply #640 on: February 26, 2019, 09:24:47 AM »
Thank you.
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ratiman

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Re: SYTE - Enterprise Diversified
« Reply #641 on: March 17, 2019, 05:19:55 AM »
https://www.sec.gov/Archives/edgar/data/1096934/000114420419010133/tv514749_sc13da.htm

Moore is now selling.

You've got to give Moore credit for this, he sure made his fleet of half-empty crapshacks sound like the greatest investment ever.

Drokos

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Re: SYTE - Enterprise Diversified
« Reply #642 on: March 17, 2019, 09:12:54 AM »
Wow, what an absolute scam. You're right though, not sure if you should be upset with Moore or give him credit for convincing the rest of the board that his "crapshacks" were some gold-mine, one of a kind business opportunity.

At this point, can anyone honestly say with a straight face that current management is better than the old management? The self-dealing and value destruction has continued, the only difference is now management calls themselves value investors and tries to write folksy annual letters.


Spekulatius

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Re: SYTE - Enterprise Diversified
« Reply #643 on: March 17, 2019, 09:35:55 AM »
https://www.sec.gov/Archives/edgar/data/1096934/000114420419010133/tv514749_sc13da.htm

Moore is now selling.

You've got to give Moore credit for this, he sure made his fleet of half-empty crapshacks sound like the greatest investment ever.

He still owns 280k shares, so that would be 100 days worth of trading volume. Could be hard sell without totally trashing the share price.  I smell an exchange of the Melrose properties for his shares in the near term future.

If he sells this in the open market, we might get a net-net.
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John Hjorth

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Re: SYTE - Enterprise Diversified
« Reply #644 on: March 17, 2019, 11:44:10 AM »
Wow, what an absolute scam  ...
https://www.sec.gov/Archives/edgar/data/1096934/000114420419010133/tv514749_sc13da.htm

Moore is now selling.

You've got to give Moore credit for this, he sure made his fleet of half-empty crapshacks sound like the greatest investment ever.

I do not recall - after about now six years - ever - even considering also reading major parts of CoBF before my own personal entry - here on CoBF - to have read anything as snide as this about a fellow CoBF member.

Shame on you.
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Gregmal

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Re: SYTE - Enterprise Diversified
« Reply #645 on: March 17, 2019, 12:03:29 PM »
IdK but anyone investing in something like this gets what they deserve. They are visible as POS’s (at best) from a mile away. At worst it’s wishful gambling on a needle in a haystack endeavor. I’ve been pretty critical of all of these “projects” that are present on websites like this, and frankly, cant see why anyone would invest in something like this. Did anyone really think they’d hit a moonshot buying HVAC businesses? I mean come on...

There’s so many easy places to make money and yet it seems so many intelligent yet capable folks on places like this spend so much time debating arbitrary nonsense like estimating BRKs intrinsic value to the nearest ten thousandth of a decimal, to on the other end, weaving together overly optimistic pictures of nonexistent dots, trying to justify a crap investment.

slkiel

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Re: SYTE - Enterprise Diversified
« Reply #646 on: March 17, 2019, 12:15:41 PM »
Thanks John.

Spekulatius- While Jeff is no longer associated with SYTE, he has consistently publicly said that he wants to remain a significant shareholder.

Ratiman- I recommend you read the rule 144 filing and Form 4 filing. Jeff already sold those shares three weeks ago. He would need to do another rule 144 filing prior to selling any other shares that he purchased through the private placement a few years ago or that were issued to him.

I have seen the criticisms about Jeff here and think they are off base. I am the one who convinced him to do the deal. It did not work out as planned. Because it did not work out, Jeff is no longer associated with SYTE, he lost his baby with the private company, and I am no longer SYTE’s CEO. I don’t see how Jeff or the company or I came out ahead.

Jeff has described this publicly as personally devastating. Yes, he was paid for the properties, but that value remains in SYTE. The problems came from the losses after the acquisition as he built overhead far above its needs.

Even with the swings and misses with Mt Melrose and HVAC, we still have a heckuva company and have created a lot of value over the last 3+ years. And, the idea of first, do no harm, is firmly imprinted in the minds of the directors.


Read the Footnotes

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Re: SYTE - Enterprise Diversified
« Reply #647 on: March 17, 2019, 01:00:32 PM »
Thanks John.

Spekulatius- While Jeff is no longer associated with SYTE, he has consistently publicly said that he wants to remain a significant shareholder.

Ratiman- I recommend you read the rule 144 filing and Form 4 filing. Jeff already sold those shares three weeks ago. He would need to do another rule 144 filing prior to selling any other shares that he purchased through the private placement a few years ago or that were issued to him.

I have seen the criticisms about Jeff here and think they are off base. I am the one who convinced him to do the deal. It did not work out as planned. Because it did not work out, Jeff is no longer associated with SYTE, he lost his baby with the private company, and I am no longer SYTE’s CEO. I don’t see how Jeff or the company or I came out ahead.

Jeff has described this publicly as personally devastating. Yes, he was paid for the properties, but that value remains in SYTE. The problems came from the losses after the acquisition as he built overhead far above its needs.

Even with the swings and misses with Mt Melrose and HVAC, we still have a heckuva company and have created a lot of value over the last 3+ years. And, the idea of first, do no harm, is firmly imprinted in the minds of the directors.

Steve Kiel just promptly and publicly posted on the board to a) take responsibility for a decision, and b) admit that it did not work out as planned.

That is about as close as I have ever heard to a public company CEO saying "I made a mistake". If you can think of better examples of a CEO publicly taking responsibility, please let me know. I would probably like to keep those managers on a list of people I would like to track and potentially invest with. Better yet, start a new thread of CEO's or investment managers who have publicly taken responsibility for mistakes, so that we can all track them.

Whether or not SYTE was a good investment at some point in time is a different question, but I have a suggestion regarding the integrity of management. I would suggest that anyone who still questions the integrity of current management or Steve Kiel or Jeff Moore after seeing Steve's post should consider one of the following:
1) only pursue investments where you think the integrity of management management will make zero difference in most all possible scenarios, or
2) allocate capital to other managers to make investment decisions for you

What Steve did here is rare and commendable.
« Last Edit: March 17, 2019, 03:30:23 PM by Read the Footnotes »

writser

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Re: SYTE - Enterprise Diversified
« Reply #648 on: March 17, 2019, 01:48:45 PM »
That is about the closest I have ever heard to a public company CEO saying "I made a mistake". If you can think of better examples of a CEO publicly taking responsibility, please let me know. I would probably like to keep those managers on a list of people I would like to track and potentially invest with. Better yet, start a new thread of CEO's or investment managers who have publicly taken responsibility for mistakes, so that we can all track them.

I heard about this guy who bought a textile manufacturing company a couple of decades ago. Just doesn't shut up about what a bad investment that was.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

ratiman

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Re: SYTE - Enterprise Diversified
« Reply #649 on: March 17, 2019, 02:52:12 PM »
There is a reason why residential real estate has typically not been owned by public companies. There are few scale advantages in residential real estate and public companies incur significant corporate expenses and corporate taxes that eat into the already low returns. And yet, in none of the public statements did I see any argument for why these assets were suitable for a public company.

You can read the announcement from Chairman Moore here. He says, "Mt Melrose will invest in things where we won’t know what our payback will be or when it will come." OK, so then why invest shareholder funds? Surely management should have some idea of what returns will be before investing?

http://sitestarcorp.com/wp-content/uploads/2017/12/Sitestar-Shareholder-Letter-from-Chairman-Jeffrey-Moore.pdf

What's even more curious is that SYTE already had residential investments on the books that it was trying to get rid of. This was SYTE's second foray into slumlording. 

People make mistakes, it happens. But public company officers who do insider deals have opened themselves up to criticism. Jeffrey Moore is fair game.