Author Topic: SPLP - Steel Partners Holdings  (Read 17253 times)

EricSchleien

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Re: SPLP - Steel Partners Holdings
« Reply #20 on: December 18, 2017, 08:09:59 PM »
Has anyone looked at this recently?


thepupil

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Re: SPLP - Steel Partners Holdings
« Reply #21 on: December 19, 2017, 02:00:20 PM »
I've always viewed it as a slightly more discounted, more operating company (versus asset management/alternative investment) focused Tetragon, meaning I think the person/people involved are smart/cunning and trying to make themselves money, but there are serious governance/external fee issue which explain the discount.

I prefer TFG because I prefer to underwrite the alternative investments and asset managers which comprise NAV (rather than operating companies..I have more personal experience in alternative assets than analyzing businesses), prefer the return of capital via divvy/buyback (TFG pays out 30-50% of sustainable earnings and has bought back 30%+ of shares), prefer the net cash balance sheet, and am generally more comfortable with the scumbags at TFG than the scumbag at SPLP.

I once went through 20+ google search pages on warren lichtenstein. The guy is a piece of work. He's universally reviled in the institutional LP community, lives a  extravagant lifestyle (owns places on the top of the bloomberg building, home in aspen), has gotten at least 1 DUI, got into public disputes with lovers, etc. I don't have all my notes, but some links are below. I'm sure you can find more.

None of that means the guy won't make dough or isn't a good investor. Your just paying full fees to that guy who's also regularly messed with minority investors in his cross-shareholdings, buying them out cheap, doing reverse split buybacks to take out small shareholders for no premium, tendering for controlled companies in preferred stock (the prefs trade at ~$83 so they are/were an inferior currency), etc.

https://www.lexology.com/library/detail.aspx?g=48f73573-f2f1-4fc9-bd64-110950508de6
https://dealbook.nytimes.com/2013/04/25/millionaires-clash-over-socialites-child-support-claims/?_php=true&_type=blogs&_r=0
https://www.aspentimes.com/news/aspen-cop-blotter-2/
https://www.thestreet.com/story/10306557/1/steel-partners-porn-plan.html

I also don't know how the underwrite the bank with the super high ROE and the sustainability thereof.

In short, I think SPLP is very cheap and interesting, and have been following its simplification efforts from afar. I just have the same governance hesitations as everyone else and have always preferred TFG for my hairy scary management warts allocation. My view is no more informed than that.

I assume your thesis gets to NAV of $30 or higher and that you have noticed the consistent effort to simplify the beast and turn it into something that is actually growing in value at a nice clip after fees, but I'm eager to hear the specifics.

« Last Edit: December 19, 2017, 02:12:37 PM by thepupil »

EricSchleien

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Re: SPLP - Steel Partners Holdings
« Reply #22 on: December 20, 2017, 07:37:31 PM »
Yeah that's basically my thesis in a nutshell.

dweiss60

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Re: SPLP - Steel Partners Holdings
« Reply #23 on: June 06, 2019, 11:10:58 AM »

Have you come back to this since? Stock is cheaper and earnings are higher (I think)

Ballinvarosig Investors

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Re: SPLP - Steel Partners Holdings
« Reply #24 on: September 23, 2019, 02:30:34 PM »
New 52 week lows. The business has grown, management are guiding $210m-$230m in EBITDA, even when you factor in the debt and the pension deficit, this still looks pretty cheap. The only thing that bothers me is I am not convinced how durable the underlining businesses would perform in a recession.

thepupil

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Re: SPLP - Steel Partners Holdings
« Reply #25 on: December 13, 2019, 07:58:01 AM »
would probably put this in the interesting tax loss selling candidates list. at 0.57x book where it hasn't been since about 0.6x in early 2016. I don't own it for reasons already stated, but for those willing to invest in lower quality businesses and people, this is very cheap, maybe 30-50% NAV multiple as most people get to NAV higher than book when they look at this. anyone following the fundamentals more closely can comment, just wanted to flag the giant underperformance and de-rating of this bad boy.