Author Topic: SYTE - Enterprise Diversified  (Read 275913 times)

ratiman

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Re: SYTE - Enterprise Diversified
« Reply #830 on: December 19, 2019, 03:26:42 PM »
I've seen this "It's tough being an operator" argument a number of times. That's not the problem. The problem was that they bought assets that had no business being owned by a publicly traded microcap. Owning residential rental properties is a tough business when it's run out of your kitchen, it's impossible inside the cost structure of a public company, not to mention the lack of REIT status. The thing is, SYTE already knew this, as SYTE already had rental properties it was trying to sell in Virginia. I don't know why management thought that rental properties in Kentucky would somehow perform better than rentals in Virginia. It was a bad  business in Virginia, what would suddenly change in Kentucky?

So no, the problem wasn't a lack of operating experience. They just bought the wrong asset and then, amazingly, bought the same exact asset a second time, expecting magic to happen. And yes, I'm aware that it was different management teams that, incredibly, made the exact same mistake. The first management team was fired for stepping in shit and then the second management team stepped in the exact same shit. It's bonkers.

« Last Edit: December 19, 2019, 03:34:50 PM by ratiman »


Foreign Tuffett

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Re: SYTE - Enterprise Diversified
« Reply #831 on: December 19, 2019, 08:23:30 PM »
This has been pointed out earlier in this thread, but the core issue here is that SYTE is very small, yet quite complex. This is a bad combination for a holding company structure.

Corporate level expense was ~$850K last year, and will probably be similar this year. The operating businesses and Alluvial Fund investment are going to have a difficult time offsetting this expense. I think management is moving in the right direction by attempting to simplify the company (aka repenting for past sins), but has become embroiled in this odd legal dispute with Woodmont.

Spekulatius

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Re: SYTE - Enterprise Diversified
« Reply #832 on: December 21, 2019, 06:10:09 PM »
New shareholder at SYTE: https://www.sec.gov/Archives/edgar/data/1096934/000178522519000001/0001785225-19-000001-index.htm

Likely explains the massive jump in volume over the past 10 days or so.

The Spanish fund/investor likely purchased their shares from Jeff Moore, who is now below 5%: https://www.sec.gov/Archives/edgar/data/1096934/000110465919073877/0001104659-19-073877-index.htm

So there is new episode in the SYTE soap opera: ”The Spaniard”

Not sure what they are seeing here to take an ~8% ownership. The acquirer is a real estate company located in Spain. SYTE isn’t really a real estate company any more. Curious to see how this will work out.
« Last Edit: December 21, 2019, 06:14:27 PM by Spekulatius »
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DTEJD1997

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Re: SYTE - Enterprise Diversified
« Reply #833 on: December 21, 2019, 07:24:12 PM »
New shareholder at SYTE: https://www.sec.gov/Archives/edgar/data/1096934/000178522519000001/0001785225-19-000001-index.htm

Likely explains the massive jump in volume over the past 10 days or so.

The Spanish fund/investor likely purchased their shares from Jeff Moore, who is now below 5%: https://www.sec.gov/Archives/edgar/data/1096934/000110465919073877/0001104659-19-073877-index.htm

So there is new episode in the SYTE soap opera: ”The Spaniard”

Not sure what they are seeing here to take an ~8% ownership. The acquirer is a real estate company located in Spain. SYTE isn’t really a real estate company any more. Curious to see how this will work out.
Maybe the acquiring company doesn't know that SYTE is moving out of real estate?

Could also be that because they are located in Spain, they don't talk American real good.  Maybe they got confused about something?  Something lost in translation?

« Last Edit: December 21, 2019, 07:40:59 PM by DTEJD1997 »

Gregmal

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Re: SYTE - Enterprise Diversified
« Reply #834 on: December 21, 2019, 07:31:50 PM »
Or maybe, like everyone else who’s invested here, deep down, they just want a tax write off.

stahleyp

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Re: SYTE - Enterprise Diversified
« Reply #835 on: January 07, 2020, 09:44:06 AM »
Does anyone know how SYTE's ownership interest is with regards to specific managers?

I could see how it could cause some resentment if SYTE has 50% ownership vs 10% for another managers and 20% for another.
Paul

Scunny Bunny

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Re: SYTE - Enterprise Diversified
« Reply #836 on: January 13, 2020, 04:05:06 PM »
Interview with Steve Kiel & Tobias Carlisle https://acquirersmultiple.com/2020/01/monday-ep-48-the-acquirers-podcast-steven-kiel-transition-cos-balance-sheet-to-income-statement-investing-special-situations-and-graham/ It may be a sign of what's happened with this company .... the Arquitos logo falls off the wall and smashes at 24:17 of the podcast!!!!!!

slkiel

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Re: SYTE - Enterprise Diversified
« Reply #837 on: January 13, 2020, 07:31:32 PM »
Even better. It was actually the Willow Oak logo. Ironically, that part of the business is doing great!

CorpRaider

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Re: SYTE - Enterprise Diversified
« Reply #838 on: January 13, 2020, 08:20:15 PM »
It was funny.  Funny tweet about it as well.  Also, nice job Toby by sliding on by the coinstar mix up/confusion.

Moht

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Re: SYTE - Enterprise Diversified
« Reply #839 on: January 31, 2020, 11:26:20 AM »
Two tough years for Arquitos, down 14% in 2019 and down 31% in 2018, per his Q419 letter: https://gallery.mailchimp.com/2511717cdf1bae9a0638c942a/files/8f5f9baf-c8e2-4061-9841-c67bd803bdcc/Arquitos_Investor_Letter_Q4_2019.pdf

Not saying it's going to happen, but in the event his fund faces redemptions, what happens to the illiquid SYTE shares? Do LPs take them instead of cash - and then indiscriminately sell? I've seen it happen plenty of times. And what are Arquitos' terms? I recall reading something about a 60 day lockup in a prior letter. Maybe that's changed?

Fascinating set-up.

Also, for those who missed it, Focused Compounding (a Willow Oak fund) just filed a 13D on Park's America: https://www.sec.gov/Archives/edgar/data/1297937/000179329120000003/0001793291-20-000003-index.htm