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Nat Stewart  

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  • Kraft +11.8%; company reportedly in buyout talks [View news story]
    It's a wonderful thing, isn't it? Mass layoffs, rationing, "zero cost" budgeting, gutting middle class jobs, factory jobs, and most shreds of human decency functioning within a company. Its amazing how fast profits can grow when management functions with little to no empathy for working people. But at least already wealthy investors will make even more money, so its all good....
    Mar 24, 2015. 10:46 PM | 4 Likes Like |Link to Comment
  • Kraft +11.8%; company reportedly in buyout talks [View news story]
    You should look what they did to Heinz, which was already considered a very well run company.
    Mar 24, 2015. 09:52 PM | 1 Like Like |Link to Comment
  • Kraft +11.8%; company reportedly in buyout talks [View news story]
    Yes. eliminate as many middle class jobs as possible, move as many jobs to third world countries as possible, and take as much cost (quality) out of the product as possible. Profits soar so that the effective P/E comes way down - and investors reap large profits.
    Mar 24, 2015. 09:00 PM | 6 Likes Like |Link to Comment
  • Update: United-Guardian's Dividend Cut Raises Questions [View article]
    Solid final quarter to the year announced yesterday, just as Management suggested. With only days left in the first quarter, they are saying that "We have continued to see strong sales into the first quarter of 2015". So we have two good quarters plus some new products that look promising coming online in 2015. I think the stock is a buy. Great little company with great economics that mostly needs to work on building new sales channels for its products.
    Mar 24, 2015. 11:22 AM | 1 Like Like |Link to Comment
  • United-Guardian Reports Year-End Earnings [View article]
    Looks good
    Mar 23, 2015. 10:19 AM | Likes Like |Link to Comment
  • Why You Should Avoid Nathan's Famous [View article]
    I would have loved to have purchased the senior secured notes in my tax-differed account. To bad I don't qualify as an institution investor to get "the call".

    If u think about the entire capital structure, they have minimized the corporate level taxation on flows to investors - the company has a very high effective tax rate, I noticed, and now that corporate tax is mostly gone. So if one could own both securities, it would be ideal.

    I don't see any reason why the insiders who own lots of stock would want to long term, crush their equity value. It would amount to a huge loss for them, on a net basis.

    If they have another angle such as also buying the high yield notes I think it would need to be disclosed. The insiders in this are very clever - to see the real story we must attempt to see the situation through their eyes, not our own.
    Mar 22, 2015. 10:04 PM | 1 Like Like |Link to Comment
  • National Beverage Corporation: A Growth Opportunity? [View article]
    Retired, I believe that you have made an astute observation. The best part is, IMO the longer a larger company waits, the more money we will ultimately make as the underlying brand value of key brands like LaCroix and Rip It continues to rise. I am super-exited to try the new Shasta varieties as well - the annual report photos looked extremely enticing!
    Mar 21, 2015. 03:43 PM | Likes Like |Link to Comment
  • Consolidated-Tomoka - Major Catalysts Plus REIT Conversion Plan Will Unlock Value [View article]
    Yes, I noticed that. It is a perfect example of what many don't seem to understand yet. Albright, his team, and the city counsel are all on board, working together to transform the economic trajectory of this area. The best part is, as each part comes "online" the value of the remaining land will be going up. Investors have the opportunity to buy in below book value with a terrific managerial team and a supportive development climate. I fully expect that the land values will indeed need to be rerated higher.
    Mar 21, 2015. 03:34 PM | Likes Like |Link to Comment
  • Fonar: A Micro-Cap With 40% Upside [View article]
    Yes, unfortunately the various private co-owners of the business assets have been treated much better than us "commoners" do to their receipt of very generous dividends. Where is our dividend or capital return? If the company fixed this by taking the measures I suggested, the stock would fly.
    Mar 20, 2015. 02:39 PM | 1 Like Like |Link to Comment
  • Fonar: A Micro-Cap With 40% Upside [View article]
    GE paid Fonar an 128.7M in a patent lawsuit in the late 90's.

    The company still does own its IP, so if the clinics can ultimately get others interested in their IP, it does create some optionality.
    Mar 20, 2015. 02:37 PM | Likes Like |Link to Comment
  • Consolidated-Tomoka - Major Catalysts Plus REIT Conversion Plan Will Unlock Value [View article]
    Good find. U noticed the article a few hours before it hit my Google alerts feed.

    I liked this quote from Councilman Doug Daniels:

    “Consolidated Tomoka is a stellar performer,” Daniels said. “They showed they can produce and produce on schedule.”
    Mar 19, 2015. 07:18 PM | Likes Like |Link to Comment
  • Fonar: A Micro-Cap With 40% Upside [View article]
    Jacobtr, they tried being manufacturing-focused for a long time, the bottom line is they were too small to get scale in this very competitive marketplace. The plan didn't work and they lost massive amounts of money, ultimately.

    The "good" business that they have refocused their efforts on is clinic management, ownership, and service. This business has great economics - they can sell the benefits of the Stand-up MRI and reap the benefits. They still sell some machines, indeed they sold a few last fall, but it is not the core operating business. Calling it (Fonar's machines) "revolutionary" might be an overreach. There are positives and negatives to their machines, which through their clinics they can sell customers on.
    Mar 18, 2015. 11:58 AM | 1 Like Like |Link to Comment
  • Fonar: A Micro-Cap With 40% Upside [View article]
    My two cents:

    I spent 40 or so hours researching this company a while back. The biggest risk results from the fact that the CEO has total voting control, yet only a miniscule 2% economic interest in the stock. Then you notice a long, long history of related party transactions - I went back to the early/mid 1990's in SEC statements and after a while my head was spinning.

    It seems the family has made a good living conducting related business with Fonar - It might all be legitimate, I am not judging that - the question is, will shareholders ever truly be rewarded, or will the stock just "fluff up" for a time and then collapse again?

    Here is a good start to fixing the above issues. There have been positive developments in recent years, but not enough to get shareholder's sustained confidence.

    1.) Create a real incentive plan for the CEO that puts him economically on the same side of the table with shareholders.
    2.) A real return of capital policy: The private co-owners of the business assets have been receiving a huge cash flow yield - where is ours?
    3.) Clean up corporate governance - either own enough economic stock to have control, or earn control through good performance. the dual share structure is ridiculous, at this point. Add some real expertize to the board.
    4.) bring in a real CFO ASAP.
    5.) End related-party transactions once and for all.
    6.) Borrow money NOW to finish buying-out the private owners - the yield spread on debt vs. the the yield paid to the other owners is huge.
    7.) Bottom line they need to treat this like a public company. Regardless of control via a special ownership class of shares, a duty of loyalty is owed to public shareholders.
    8.) Get all this done, start returning capital, finish buying out the private owners, and the business has a nice change of excellent returns - the NOL will create a nice tax shield for some time to come.

    If we see that management is actually on our side in a real way via real alignment of interests and cleaned up corporate governance, the stock should trade sustainably over 25 a share and not just run up and collapse again as it has in the past.
    Mar 18, 2015. 11:43 AM | 8 Likes Like |Link to Comment
  • Lumber Liquidators' Campaign Of Distraction And Deception [View article]
    Is anyone else reminded of the 60 minutes "sudden acceleration" hysteria/hoax from the 80's that almost destroyed Audi?
    Mar 13, 2015. 07:37 PM | 2 Likes Like |Link to Comment
  • National Beverage Corp. Continues . . . to Sparkle! [View article]
    A great quarter! Very exited to sample the new Shasta variety.
    Mar 13, 2015. 01:00 PM | Likes Like |Link to Comment