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Mark Krieger
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I am a value/activist investor dedicated to the following ideals: (1) Focus on high relative strength, (2) Buy low, sell high aka "buy the dip, sell the rip" (3) Short high, cover low, (4) Go against the crowd, (5) It's all about the rules and discipline- hold them dear (6) Analyze the balance... More
  • Fuel Systems Solutions Takes Off, Thanks To Kevin Douglas! 3 comments
    Feb 13, 2014 9:29 PM | about stocks: FSYS

    In the last four trading days, (NASDAQ:FSYS) has literally taken off, jumping an astounding 24% with the absence of any news. What could of prompted the jump? Could of it been my recent SA story published last Sunday (wishful thinking on my part) or falling natural gas prices? I was simply stumped until Thursday afternoon (after market close) when the mystery was finally solved.

    A 13-d filing by Investor Kevin Douglas revealed that he had reached the threshold of becoming a greater than 5% owner of the shares. In fact, Mr. Douglas who previously controlled just under 5% of FSYS's outstanding shares ( he retained 1,056,671 shares ) nearly tripled his stake in the company by adding another 1,615,013 shares, and now owns 2,671,684 shares or 13.3% of the company. He now becomes FSYS largest shareholder, passing up CEO's Mariano Costamagna's 8.2% stake, consisting of 1,634,185 shares.

    Now that Douglas has acquired a much bigger ownership position, there is no doubt that he will be able to exercise more influence on the Board of Directors. He might be inclined to suggest a stock buyback , a special cash dividend or even recommend the sale of the entire company. Who knows what activist roles he could take? the sky is the limit. The point is he has plenty of skin in the game, and will want to make darn sure that investment ultimately produces a reasonable return.

    One thing I don't understand is why did the shares rally so much before the news was actually released? were there those "in the know" who were already buying pushing up the price?I would like to buy more shares, but would prefer to do so on a pullback (I absolutely loath chasing quick rising stocks). Hopefully for those who missed the boat entirely or simply want to juice up their current positions, the shares will encounter a correction and retrace about 1/2 of their recent gains, putting them back to the mid $12's, but don't count on it.

    I did not even bother to mention Mr. Douglas in my most recent article, because frankly I had sort of lost faith in his "Mojo" regarding FSYS...Boy, was I sure wrong...Mr. Douglas came to the rescue of long suffering FSYS shareholder's in a mighty big way. Thank you Mr. Douglas!

    Disclosure: I am long FSYS.

    Stocks: FSYS
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Comments (3)
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  • Mark Krieger
    , contributor
    Comments (6368) | Send Message
     
    Author’s reply » one thing that is a little fuzzy---I said Douglas was not previously a 5% shareholder, but if you take his previous position of 1,056,671 divided by 20,095,336 shares outstanding, you come up with 5.2% position..the funny thing is he was not listed on the DEF14A proxy statement as a 5% shareholder. http://bit.ly/1je0mv8
    13 Feb 2014, 10:02 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6368) | Send Message
     
    Author’s reply » hmm...my error...I rechecked the proxy again and noticed he (Douglas) had all along held a 13.3% position. Apparently I got al riled up about nothing. wow.. false alarm....talk about a "senior moment".<p class="double"> <...http://bit.ly/15A2GJ1
    13 Feb 2014, 10:08 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6368) | Send Message
     
    Author’s reply » I guess the latest filing was simply an amendment that really didn't change a thing, perhaps it was merely a housekeeping task.
    13 Feb 2014, 10:21 PM Reply Like
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