Author Topic: SYTE - Enterprise Diversified  (Read 244331 times)

Parsad

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Re: SYTE - Sitestar
« Reply #280 on: January 30, 2017, 11:10:50 PM »
One thing I will say.  It's fair to comment on issues when they don't look quite right, but it's also not particularly fair on this type of forum to become accusatory.  The reason being is we are dealing with a public company, and the CEO is somewhat restricted from what he can say, so we may not have all of the facts and circumstances.  He can't just go on Twitter and say whatever the hell he wants...only the President gets to do that!   :P

Cheers!
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Sunrider

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Re: SYTE - Sitestar
« Reply #281 on: January 30, 2017, 11:28:11 PM »
Tim he is being paid twice. Whether that's good/bad is a different question. Problem with your argument is that he's being paid to allocate investors' capital as a full time job by his investors and he's getting paid by shareholders to be a full time CEO --- in a business where the capital is now being disbursed and actual 'operations' are in run-down. I don't like that because there's no way he works 2x 100% that he's getting paid for. Looking at it another way, both roles could be seen as capital allocation roles that can be done in 1x100% but then I think it would be fairer to pay him no base for Syte and only a carry on the increase in BV, sustained over, say 3 years (i.e. 3 - 5 year average increase in BV).

On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.


I beg to differ that he is getting paid twice to manage the same money.  They are two separate issues it is just that the same person is doing both.  He is getting paid as a fund manager to allocate capital.  He is also getting paid as the CEO which entails a whole lot more than managing the company's capital.  Being in that situation as a part time CEO I can attest to the different use of time.  It is not an overlap.  I suspect you would have no problem if a hired CEO got paid that amount.  To expect him to work for nothing when you would happily pay someone else shows the rationale of your argument is flawed. 

     

ScottHall

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Re: SYTE - Sitestar
« Reply #282 on: January 30, 2017, 11:57:02 PM »

I don't feel comfortable saying more, except that the reason I found it interesting had nothing to do with location necessarily.

Cryptic.

Sorry, don't want to dish on other people's deals with potentially outdated info. Just thought people would benefit from some knowledge from someone who has met & briefly worked with Sean Sun, etc.

Sean Sun is a really bright guy. He's a good growth investor but also has a great value skill set. He doesn't (or didn't) shy away from esoteric things; he found the Walker's Manual quite fascinating, for instance. There are smart people on both sides of this deal and if I had to guess, it'll work out very well for all involved.
Understood.

Reading the full filing, this doesn't seem like the deal I heard of previously. So no clue on economics.

Everything I said about Sean Sun stands, though.

Parsad

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Re: SYTE - Sitestar
« Reply #283 on: January 31, 2017, 12:48:37 AM »
Tim he is being paid twice. Whether that's good/bad is a different question. Problem with your argument is that he's being paid to allocate investors' capital as a full time job by his investors and he's getting paid by shareholders to be a full time CEO --- in a business where the capital is now being disbursed and actual 'operations' are in run-down. I don't like that because there's no way he works 2x 100% that he's getting paid for. Looking at it another way, both roles could be seen as capital allocation roles that can be done in 1x100% but then I think it would be fairer to pay him no base for Syte and only a carry on the increase in BV, sustained over, say 3 years (i.e. 3 - 5 year average increase in BV).

On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.


I beg to differ that he is getting paid twice to manage the same money.  They are two separate issues it is just that the same person is doing both.  He is getting paid as a fund manager to allocate capital.  He is also getting paid as the CEO which entails a whole lot more than managing the company's capital.  Being in that situation as a part time CEO I can attest to the different use of time.  It is not an overlap.  I suspect you would have no problem if a hired CEO got paid that amount.  To expect him to work for nothing when you would happily pay someone else shows the rationale of your argument is flawed. 

     

Not necessarily true.  I can't speak for what is happening at Sitestar, as I don't know the facts fully, and I'm not there watching operations daily.  But speaking for myself:

- I'm in the office from 10am to 7-8pm most days, unless I have meetings downtown...about 70% of that time is PDH and 30% is CMC. 
- I'm also up around 8am to check emails and quick calls before I head to the office. 
- When I get home usually around 7:30-8:30pm, I have dinner, put on hockey while I read 10-Q's & 10-K's, run screens, look for ideas, etc for CMC, answer emails till 1-2am.   
- Then I'm also usually in the office one day on the weekend for at least 6-8 hours (usually Saturdays) and then I'm working for 3-4 hours on Sunday from my home office on CMC stuff while football is on. 
- I go into the office on holiday Mondays, even when the building is closed to staff.
- I don't really take vacations...usually I add one day here or there on business trips.
- I generally eat a late breakfast at 11am and a late lunch at around 3pm...all on my desk, unless someone wants a lunch meeting...but I prefer coffee meetings so I don't waste much time.

Now that I actually think about what I do, I work pretty f**king hard!  And at times it feels like it.  But most of the time, I feel very fortunate doing what I'm doing and I love it.  That being said, if anyone begrudges me taking a fixed $99,000 salary because I'm CEO, even though I control a lot of the stock, they can bugger off. 

I get some 60-70 emails a day...sit on 4 corporate boards...2 charitable boards...usually 4-8 calls a day...7 full-time staff and another 14 staff through associate investments we are involved with...4 public earnings filings a year, a public company audit, two fund audits, numerous press releases, filings, statements...payroll and payable twice a month...8 corporate tax returns, two fund tax returns, two general partner tax returns, CMC's tax return...contracts, agreements, settlements, other legal documents...audit committee meetings, corporate governance meetings...networking events, annual PDH FFH dinner, company events, Pabrai Funds meeting...meetings with potential investments, business consultants bringing a potential acquisition, meetings with young managers, business people, CoBF readers, etc...the list can go on and on.  Wow!

Cheers!
« Last Edit: January 31, 2017, 12:51:09 AM by Parsad »
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InelegantInvestor

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Re: SYTE - Sitestar
« Reply #284 on: January 31, 2017, 03:18:23 AM »
One thing I will say.  It's fair to comment on issues when they don't look quite right, but it's also not particularly fair on this type of forum to become accusatory.  The reason being is we are dealing with a public company, and the CEO is somewhat restricted from what he can say, so we may not have all of the facts and circumstances.  He can't just go on Twitter and say whatever the hell he wants...only the President gets to do that!   :P

Cheers!
I hope I have not crossed the line here. I purposely did not share my thoughts here in the first place, and only responded after others began to discuss what I had said elsewhere. I understand that Steven is somewhat restricted(though he has commented on some of these issues on this thread in the past). Of course, the other side of being a public CEO and having shareholders is that ones actions are open to public discussion and scrutiny. Hiding behind the idea that shareholders do not know all the facts is paternalistic and unfair. We may not know all the facts, but ultimately, we are the owners.

InelegantInvestor

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Re: SYTE - Sitestar
« Reply #285 on: January 31, 2017, 03:20:02 AM »
On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.

I do not believe this to be the case. Please show me that it is, so that I can correct my public statements, if necessary.

rkbabang

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Re: SYTE - Sitestar
« Reply #286 on: January 31, 2017, 05:19:17 AM »
On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.

I do not believe this to be the case. Please show me that it is, so that I can correct my public statements, if necessary.


I don't have the time to read through the filings to find it, but IIRC, there was an SEC filing which basically said that the offer was underfunded and that they were not going to advertise or promote it which was at least implying that accredited investors could contact them for info.  I haven't because I have the same misgivings as you do about the first offering where he took control and I already own almost a million shares.  I'm not sure I want to invest another $25K in this company. If the minimum investment was lower I might have.  I'm holding for now, because I like a lot of what they are doing, and, of course, I can't sell too much without effecting the price.

InelegantInvestor

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Re: SYTE - Sitestar
« Reply #287 on: January 31, 2017, 05:37:05 AM »
On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.

I do not believe this to be the case. Please show me that it is, so that I can correct my public statements, if necessary.


I don't have the time to read through the filings to find it, but IIRC, there was an SEC filing which basically said that the offer was underfunded and that they were not going to advertise or promote it which was at least implying that accredited investors could contact them for info.  I haven't because I have the same misgivings as you do about the first offering where he took control and I already own almost a million shares.  I'm not sure I want to invest another $25K in this company. If the minimum investment was lower I might have.  I'm holding for now, because I like a lot of what they are doing, and, of course, I can't sell too much without effecting the price.

Thought you meant the first offering. The second was at $.05.

oddballstocks

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Re: SYTE - Sitestar
« Reply #288 on: January 31, 2017, 05:43:07 AM »
On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.

I do not believe this to be the case. Please show me that it is, so that I can correct my public statements, if necessary.

It's true, I contacted them and was sent subscription information.  There are rules about companies soliciting for rights offerings.

I'm watching something similar in Aztec Land and Cattle.  They held a rights offering last year, and one this year.  To an outside observer it's just happening.  There are 'special' stockholders who are backstopping it.  But I also know that anyone accredited can subscribe, but you need to call the company and let them know you're interested.  The backstock shareholders were just a few individuals who were in contact with the company and in a position to move on this.

I'll say this on the situation.  I think optics matter, Inelegant from your vantage point you have a lot of well founded points and I understand your perspective.  I've also seen how the sausage is made so to speak and see the other side.

If this was a vanilla company where I didn't know the people involved personally I'd be very worried about perceived red flags.  But after seeing behind the curtain I understand what's going on and I don't have the same view.

I don't want to speak for Steve, but I think they're doing their own filings.  My guess is they're overly conservative in what they're releasing because they don't want to find themselves in a legal nightmare regarding disclosure.

In the end everyone needs to make their own decisions.  I agree with Sanjeev that most outside investors underestimate the amount of work anyone running a company has to do.  It's easy to pick apart what a company is doing from afar, but when actually in the weeds it's difficult to keep all the balls in motion.
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rkbabang

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Re: SYTE - Sitestar
« Reply #289 on: January 31, 2017, 05:47:15 AM »
On the fligpside, the .048 offer was open to all qualified investors if I recall correctly.
C.

I do not believe this to be the case. Please show me that it is, so that I can correct my public statements, if necessary.


I don't have the time to read through the filings to find it, but IIRC, there was an SEC filing which basically said that the offer was underfunded and that they were not going to advertise or promote it which was at least implying that accredited investors could contact them for info.  I haven't because I have the same misgivings as you do about the first offering where he took control and I already own almost a million shares.  I'm not sure I want to invest another $25K in this company. If the minimum investment was lower I might have.  I'm holding for now, because I like a lot of what they are doing, and, of course, I can't sell too much without effecting the price.

Thought you meant the first offering. The second was at $.05.

Yes, you are correct I didn't think the first offering was open to anyone, just the second. And it was at $0.05, still way under market.