Author Topic: SODI- Solitron Devices  (Read 124590 times)

wachtwoord

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Re: SODI- Solitron Devices
« Reply #290 on: September 30, 2017, 07:38:39 AM »
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Tim Eriksen

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Spekulatius

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Re: SODI- Solitron Devices
« Reply #292 on: April 12, 2018, 05:49:11 PM »
A press release was issued today after the market's close

https://globenewswire.com/news-release/2018/04/12/1469599/0/en/Solitron-Devices-Inc-Announces-Preliminary-Unaudited-Fourth-Quarter-Sales-and-Bookings.html

Tim

Bookings are falling off a cliff. Solitrons products look like offerings from the nineties, which is probably one of the biggest issues with this company.
« Last Edit: April 13, 2018, 04:20:37 AM by Spekulatius »
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writser

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Re: SODI- Solitron Devices
« Reply #293 on: December 03, 2018, 06:40:02 AM »
Saraf probably feels great about selling his shares at $3.91 in 2016. Share price is falling off a cliff.
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valueyoda

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Re: SODI- Solitron Devices
« Reply #294 on: December 03, 2018, 07:58:29 AM »
Absolutely, the balance sheet margin of safety was gone with the buyout of Saraf, so then it became a bet on the underlying business, and we never felt comfortable enough that the company in its current form would or could produce sustainable profits. I don't envy Tim, who has been dealt a tough hand despite his good efforts, in this situation.

Tim Eriksen

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Re: SODI- Solitron Devices
« Reply #295 on: December 04, 2018, 10:58:37 AM »
Saraf probably feels great about selling his shares at $3.91 in 2016. Share price is falling off a cliff.

Boards face two choices in this situation.  Negotiate a severance only package or a severance plus stock repurchase.  I felt he would stick to his guns on the severance but probably didn't want to own the stock if he wasn't in control.  Thus a combination deal would be the better approach.   
   
Another way to look at the repurchase price is if you assume he would have fully collected his three years severance pay plus accrued vacation and COBRA benefits had he pursued it legally, that would have been $1.41 million.  So the issue was should the Company do a comprehensive package and gain some savings regardless of whether either side viewed it as reducing the severance or the repurchase price.   If you assume he could fully collect severance the buying back of his stock and options was an additional $1.43 million.  If so the effective repurchase price was $2.53 per share for the 331,027 shares of stock and approx. 290,000 options less their respective exercise prices.         

bookie71

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Re: SODI- Solitron Devices
« Reply #296 on: December 04, 2018, 05:29:28 PM »
I've been watching this thread for quite a while and have to ask, Is this the same Solitron Devices that broke a lot of folks in the 60's?
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Hielko

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Re: SODI- Solitron Devices
« Reply #297 on: December 05, 2018, 03:20:01 AM »
I think buying Saraf's shares made a lot of sense at the time, even though in hindsight it now doesn't look so great. At the time the thesis was obviously that Solitron was undervalued, and buying back a large block of shares at market price should have been a good deal. I think the real problem is simply that Solitron isn't as good as a business that people thought it would be with Saraf removed.

Spekulatius

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Re: SODI- Solitron Devices
« Reply #298 on: December 05, 2018, 03:36:58 AM »
I think buying Saraf's shares made a lot of sense at the time, even though in hindsight it now doesn't look so great. At the time the thesis was obviously that Solitron was undervalued, and buying back a large block of shares at market price should have been a good deal. I think the real problem is simply that Solitron isn't as good as a business that people thought it would be with Saraf removed.

Agreed. Their products look very stale to me. Right now, if you are in the defense business and it isnít humming, you are doing something wrong. My guess is that their products were in some long tale projects.platforms that are running out and never were replaced.
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Tim Eriksen

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Re: SODI- Solitron Devices
« Reply #299 on: December 05, 2018, 08:42:23 AM »
I think buying Saraf's shares made a lot of sense at the time, even though in hindsight it now doesn't look so great. At the time the thesis was obviously that Solitron was undervalued, and buying back a large block of shares at market price should have been a good deal. I think the real problem is simply that Solitron isn't as good as a business that people thought it would be with Saraf removed.

Agreed. Their products look very stale to me. Right now, if you are in the defense business and it isnít humming, you are doing something wrong. My guess is that their products were in some long tale projects.platforms that are running out and never were replaced.

Much of sales are legacy products, although we have invested in some development projects.  Unlike most industries where prices fall on legacy products, Solitron's have tended to rise.  It is not so much a case of end of life for programs other than Sea Sparrow which ended in 2015, as prior management pissing off customers to the point they went elsewhere.  Changing our reputation and regaining that business takes a long time.  In some cases it takes failure by the other company in either quality or delivery time.  Others it just takes becoming an approved bidder and winning the annual contract.