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Microcap Activist
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Small hedge fund manager attempting to become a micro cap activist investor.
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  • EOn Communications Management Not Acting In Shareholders Best Interest

    eOn Communications (EONC) is a great company with great fundamentals as a Ben Graham stock. Trading below book value, with a low P/E ratio, and shares backed by lots of cash, what could go wrong?

    The stock, with current management, Mr. Swartz and Mr. Bowling, is a loser. Even though the company is making money, both top executives can never take the common courtesy to answer, much less return calls from activist.

    One week I decided to call eOn everyday, nearly every 30 minutes, to get in contact with Mr. Swartz and Mr. Bowling. After a few days, calling at every possible time their office was open, I never received an answer. Odd you might ask, an executive getting paid hundreds of thousands of dollars never being in the office? That cannot be right. Well its a normal thing at eOn. I emailed Mr. Swartz following the failed attempt of getting in contact with him and he responded rapidly with an email saying how he had heard the phone ringing and the messages, but he was not interested in speaking to anyone who would be interested in talking a board seat or buying 51% of the company.

    I think is worth about $3M minimum, compared to its current $2.3M market capitalization. With over $1.5M in cash, lots of inventory, good cash flow, and stable product sales, you would have to ask why someone wouldn't be interested in buying the company. The answer to that question is simple. Mr. Swartz greed.

    I have the resources to buy all of eOn at a huge premium, but with an ignorant CEO who will not talk to you, current shareholders lose money.

    I have no position in (EONC) due to this set of events. Please contact me if you would like to speak more on this.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Tags: INVT
    Jun 23 6:02 AM | Link | Comment!
  • Paulson Capital Corp (PLCC) Trading At 50% Book Value, Takeover?

    Paulson Capital Corp, a small investment bank traded on the NASDAQ, is looking better than ever for a takeover, so longing one happens quick. The management family of Paulsons own the majority of the stock, but it is probable they might want to cash out due to the company having about $8M in liquid assets vs the market cap of less than $5M. This stock could get a big pop if they either stopped operations and bought back all shares/divvy money out or a takeover occurred. There needs to be a takeover activist though and one has yet to come up. With a small $250K position, you could own 5% of the company and probably convince management to agree to release the cash to shareholders. I do not own any shares of (NASDAQ:PLCC) nor do I plan to buy any in the near future unless an activist position is taken.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Apr 22 4:36 PM | Link | Comment!
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