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Steve Harris  

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  • General American Investors Company, Inc. Targeted By Activist Fund [View article]
    Good point. Thanks for clarification
    Feb 11, 2015. 10:28 AM | Likes Like |Link to Comment
  • General American Investors Company, Inc. Targeted By Activist Fund [View article]
    Clearly, it is difficult to handicap the probabilities. The team at Bulldog has had a lot of success with their proxy campaigns. Many of these general equity closed end funds such as (NYSE:GAM), (NYSE:USA), (NYSE:ADX), (NYSE:BCV), (NYSE:CET), and others, seem like relics. They charge excessively high fees, in most cases, more than one percent, for portfolios which are essentially indexed to the S&P 500. The existence of these types of CEF's may have made senses prior to the advent of ETF's and low cost index funds. They just don't make sense any more in their current form. I think they are likely to come under increasing pressure from activists and investors during the next couple of years and it will become increasingly difficult for their directors to argue against the merits of providing investors a means to achieve net asset value for their positions. How can the Board of Directors justify that a share repurchase which creates an instantaneous return of 14% to investors is not in the best interest of shareholders?
    Feb 11, 2015. 08:23 AM | Likes Like |Link to Comment
  • General American Investors Company, Inc. Targeted By Activist Fund [View article]
    I was accounting for the $5.86 per share that was paid out as result of the sales of FB and TWTR. With respect to the tender offer, the pro-ration factor was 17.04%. So even though they tendered for 10% of the outstanding common shares, shareholders who tendered sold 17% of their shares.
    Feb 10, 2015. 08:34 PM | Likes Like |Link to Comment
  • General American Investors Company, Inc. Targeted By Activist Fund [View article]
    I was including the $5.86 in distributions that were paid out as proceeds from the sales of FB and Twitter
    Feb 10, 2015. 08:18 PM | Likes Like |Link to Comment
  • SkyPeople Fruit Juice, Worth A Second Look [View article]
    I invested in SkyPeople a while ago, because the valuation was the cheapest of any company that I had ever seen, assuming that the financial statements are accurate. The accuracy of the financial statements is the big question. If the financial statements are correct, then this is clearly a $10 stock. Who can pass up a great bargain? I am quite cynical that such a massive mispricing can exist, but willing to take the risk of owning the shares, since the payout could easily be 10 to 1.

    There is a lot to be cynical about:
    Firstly, the company reported $77mm of cash on the balance sheet at the end of 2012, and $11mm of short term debt with no long term debt. The $66mm of net cash was worth $2.50/share, the stock was trading at $2.00, hence, they could have repurchased all of the outstanding shares with cash on hand and owned the property plant and equipment, valued at $2.60/share, for free. It is hard to believe that any sane management team would have passed up on that opportunity.

    Secondly, they began to borrow money during 2013 and 2014. They have increased short term borrowings to $45mm and long term debt to $8mm. Why would management be using expensive debt to finance operations, when they had so much cash on hand? Again, this makes no sense at all.

    Third, I have reached out to many of my Chinese contacts and nobody has ever seen or heard of their brands.
    Lastly, check out the link below, if you have not already seen it. It is a report published in 2011 by Absoroka Capital. I won't go through the details, as you can read it for yourself. Absoroka raised some serious questions. They were unable to find the product in stores. They also found the financial statements that were filed in the Province, and those statements did not agree with the financial statements filed in the U.S.. It is a very comprehensive report.

    http://bit.ly/1FQrwlH

    Please let me know your thoughts, as this remains a very interesting yet controversial opportunity.
    Dec 4, 2014. 12:04 PM | 3 Likes Like |Link to Comment
  • Skechers: An Options Play For 21% Profit In 6 Months [View article]
    I was looking closely at SKX because of the compelling valuation in terms of price to book. The one thing that keeps me out of the stock is that I never see anybody wearing Sketchers. I have visited their stores often when evaluating it as an investment. The Times Square store had lot's of people, but nobody seemed to be buying anything. They had a lot of very nice looking shoes, but the Skechers "S" on leather boots looked ridiculous.
    I think SKX could be a great investment if they could just re-brand themselves. The name is really lame and kids past the age of 11 start to feel embarrassed about wearing them.
    I want to get on the next conference call and tell mgmt to come up with a cooler logo.
    Jan 13, 2012. 05:46 PM | Likes Like |Link to Comment
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