wax

Bradley Pharmaceuticals: Reality Check, Please

From my CAPS portfolio.

Wax

Pitch by: wax 9/30/06 1:41 PM
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My reasonable value estimate is $40


Pitch ReplyReply: wax 11/01/06 6:23 AM
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I closed my position today (10.31.06) because of the recent issues surrounding the company and Costa Brava Partnership.

Costa Brava wanted directors from their limited partnership, the company didn't and mounted a campaign against Costa Brava with the shareholders. The company cited reason after reason why having Costa Brava folks on the board was a bad thing. All of this went on for weeks.

In the end, management cratered and let Costa Brava have it's way, and also reimbursed Costa Brava for some of it's expenses in getting board positions. Allowing this to happen was a mistake on the part of management, at least to my mind, and it tells me that management was more interested in themselves than their shareholders.

Put bluntly, I believe current management to be spineless and since Costa Brava is really a hedge fund, why hang out and watch the hedge fund slowly pick the company clean. So I closed my position.

I had a real world 200 share position in Bradley which I took 03.08.05. The position had a basis of $8.88. I closed my position yesterday, 10.31.06, at $16.77 a share.