In early September, 2012, I called my daughter and told her I was buying her shares in On Track Innovations (OTIV) as a birthday gift. After her warm thank you, she went on the internet and did some rudimentary research on OTIV. An hour later, she called me back and said, "Are you crazy? OTIV has been in business for 22 years, and never showed a profit". Then I told her about the company's two dissident shareholders, Marc Silk and Jerry Ivy, and how I felt that a shareholder revolt would force change in the company's board of directors and senior management, I made an initial investment for her at $1.09/share. Since that time, the price per share of OTIV has risen to $1.48. Furthermore, the shareholder revolt has progressed, and OTIV shareholders will vote on a new board at a special shareholder meeting on December 30,

ISS, a proxy advisory service, changed its recommendation from "FOR" to "AGAINST" On Track Innovations' (OTIV) nominees to the company's board of directors. This move was precipitated after ISS reviewed the 13D filing of dissident shareholder Jerry Ivy and Ivy's "VOTE NO" campaign against the company's nominees.

Apparently, ISS agrees with IVY. ISS states that "A vote against these elections is warranted given the company's continued poor financial and stock performance over the past several years, as well as concerns about compensation and corporate governance."

This is a severe blow to OTIV's current management and board of directors, a group of individuals who, in my opinion, are "rubber stamps" to the wishes of company CEO and Chairman, Oded Bashan. ISS cites poor corporate governance by having a CEO sit on the compensation committee. This is a committee that approved high executive compensation when losses keep piling up year

There is a song sung during the Jewish Passover Seder called "DAYENU". Translated into English, Dayenu means "it would have been enough". After reading OTIV shareholder Jerry Ivy's latest 13D filing, it appears to me that Jerry Ivy has had enough with the board of directors of On Track Innovations (OTIV) and the OTIV management team headed by Oded and Ohad Bashan.

In his filing, Ivy states he has "long been impressed with the Issuer's technology and efforts of its employees in creating new, innovative, patentable technology". He calls OTIV's financial performance "dismal", and says the company has a "long history (22 years) of failing to make a profit" and uses the company's reported Q2 2012 financial results (a $5M loss) as an example. Ivy calls for a management and board of directors who will "align" their interests with shareholders. He further notes a "lack of

Last evening, On Track Innovations (OTIV) filed notice for their annual meeting to be held on November 9, 2012. Included in this notice is a proxy solicitation for three board seats, and in my opinion, neither of the three candidates represent OTIV shareholders' best interests. None of the candidates offer any experience in the NFC (Near Field Communications) industry. Nor do any of the candidates have a background in intellectual property, a value that the company places great emphasis in their press releases.

With complete disregard to OTIV shareholders who have been demanding changes in company management and a stronger voice on the board, the OTIV board nominating committee has chosen nominees who, in my opinion, will just be "stooges" for an ineffective management team. These candidates offer no legitimate support of share holder interests, in my opinion, and standing up these board candidates demonstrates management's bad faith relating

On Track Innovations (OTIV) began 2012 with nine directors listed on it's company website. Today, the website lists only six directors. The terms of three directors, Ohad Bashan, Ora Setter, and Eliezer Manor have expired. I believe that these three board seats will be filled at the company's annual meeting in late 2012. Also, under Israeli company law, a public company has to have one female director, and with the departure of Ora Setter, I believe OTIV is in violation of Israeli company law. The following was taken from the November 2009 proxy solicitation:

When questioned during the Q2 2012 financial results conference

Gentleman:

In a recent Seeking Alpha article, Management Under Attack, I identified certain press releases where I feel that On Track Innovations (OTIV) management has misled shareholders. In another article, Primed For A Hostile Takeover, I pointed out how shareholders defeated your attempt to increase the authorized shares of OTIV and, in my opinion, the company could not effectively defend its poison pill defense.

I am sure that you are well aware of shareholders' dissatisfaction with the current OTIV management team. This management team has never shown a profit in the company's 22 year history, and revenue growth has not been consistent. Two of your major shareholders, Marc Silk and Jerry Ivy, have 13D filings with the SEC. Commenting on my recent Seeking Alpha article, former OTIV shareholder and successful businessman Gonzalo ("GG") Pique said,

Had a big position in OTIV. Met with management

This morning, On Track Innovations (OTIV) announced that it signed a five year agreement with Wright Express (WXS) that appoints OTIV as a reseller in Africa, and an exclusive reseller in South Africa of Wright Expresses Quantum+ Solutions. So what? In my opinion, this is just another meaningless press release from OTIV, one which has no teeth, and one which will not lead to revenue in the near future, and revenue and profitability are surely lacking with this company.

The press release today concerns OTIV's Easy Fuel subsidiary. The last revenue producing contract for Easy Fuel was July 26, 2010, two years ago. Today's press release means that OTI can use the WXS product if there is a need. With a sales and/or marketing team that can't generate consistent Easy Fuel sales, I surely am not excited about this announcement.

Speaking of the sales and marketing efforts of

Recently, Samsung (SSNLF.PK) reported that they are switching their employee credentialing to Near Field Communications (NFC) equipped smartphones. Shortly afterward, I received an email communication from Jay Meier, former Senior Vice President for Investor Relations and Business Development of On Track Innovations (OTIV). Jay very succinctly explained how NFC works, which is as follows:

"NFC is just an evolution or application extension of contactless smart card technology. In fact, the standard for NFC utilizes ISO/IEC 14443-A/B, the international standard for contactless smart cards. Thus, NFC "is" simply a contactless smart card that's been wired to a SIM-card and embedded in a mobile handset. Thus, we can further describe an NFC module inside a smart phone as a "dual interface smart card". The "dual" implies bi-modal communication signal paths between an integrated circuit (IC) chip (smart chip), and a reader device. The bi-modal communication paths are "contact" and "contactless". Thus,

On March 27, 2012, On Track Innovations (OTIV) announced a patent infringement lawsuit against T-Mobile (DTEGY.PK) that alleges T-Mobile sells near field communications (NFC) equipped cell phones that infringe on one of OTIV's patents. A late-May 2012 preliminary conference between both parties and the judge was postponed until early July 2012, and a recent progress check on PACER (Public Access to Court Electronic Records) indicated that this meeting was postponed until Aug. 3, 2012, as both parties filed a letter with the judge stating that both are in talks to settle the lawsuit and asking for a continuance. The court allowed the continuance and scheduled the pretrial conference for Aug. 3, 2012, allowing no other continuances.

While T-Mobile has not made any claims as to the validity of the lawsuit, it appears to me that it would like to settle this case. A lucrative settlement could be a

Rosh Pina, a town in northern Israel, is the home of On Track Innovations (OTIV). The company headquarters is a modern, state of the art facility, and offers employees a first-class work environment. Oded Bashan, the company's chairman and CEO, is a beloved father figure to OTIV's employees, and when employment vacancies appear, they are filled quickly.

Unfortunately, this picture of Oded Bashan is not the one perceived by the investment community. After 20 years in business, the company has not shown a profit from operational revenues. Five years ago, Ohad Bashan, Oded's son, become company President. Operational revenues for the past 5 years have grown 6% (compounded annually). Would you consider this growth rate acceptable for a micro cap company? I don't.

The company was the first company to enter the Near Field Communications (NFC) industry and has developed over 100 patents and patents pending. Unfortunately, the company has

It is extremely rare to find a value play that is completely misunderstood by the public, and yet happens to, when analyzed closely, provide real value at an extremely large discount. It is rarer still to find one that owns a growing portfolio of high-quality assets, run by a skilled team of managers with a proven long-term track record. It is rarer still to find it in a public company trading as a NYSE stock, under $5, with name brands in its portfolio. Harbinger Group HRG is such a company, and I sincerely doubt the opportunity will be around for long.

Harbinger was created as a permanent capital vehicle for Phil Falcone and his team to transition from their hedge fund, Harbinger Capital, into an investing strategy that didn't have to rely on the monthly capital inflows and outflows associated with a hedge fund. The first thing HRG did in

On Track Innovations (OTIV) is a small Israeli company competing with Veriphone, Gemalto and others in the Near Field Communications and contactless payments industries. This 20-year-old company has a patent portfolio of 100 patents and patents pending. OTIV recently signed a $7M non exclusive licensing agreement for one of its patents, and initiated a patent infringement law suit against T-Mobile.

The company has been in business for 20 years, and has never been profitable. Led by its founder, CEO Oded Bashan, and Oded's son, Ohad, the company President, the company has given past guidance and goals that, in my opinion, have not been met.

Recently, two major investors, Mark Silk and Jerry Ivy, have filed 13D filings with the SEC. Both Silk and Ivy report an average cost of shares purchased around $3/share, and the stock has been trading well below the $3 price investors paid