One of my stock picks for 2013, Solitron Devices, is under new proxy pressure. Backstory aside, the company’s CEO is simply sitting on too much cash while ignoring requests of other shareholders, pissing off a legion of mostly young, deep value investors.
On February 22th an investment fund by the name of Furlong decided to sue Solitron Devices to correct some of the many problems going on behind the scenes. In particular, the fund wants the company to start holding annual meetings and elect new board members. As a shareholder, this is great news.
Put up on the list of new potential board members was none other than Ryan Morris, the guy that you’ve probably read about in BusinessWeek for being a 28-year old Graham/Buffett-based activist investor.
Not so far down in the proxy information is my man Mr. Schembs, who I love so dearly for tearing stuff up at Adams Golf. (Thanks again!)
It really is a small world, this value investing stuff. If all goes to plan, this $8.2 million, Pink Sheet-listed penny stock just might have to free itself of some of its $7.2 million cash hoard. Hand it over, buck-o.