I was doing some follow up work on my earlier post on SPCO, and I noticed something I hadn’t before. Michael Smith, the new CEO, has a long relationship with Richard Barone, the activist / board member who pushed for a sale a few years ago.
They served together on the board of MACE for almost ten years, and Smith was brought in as temporary CEO of Mace in late 2011, where Barone is now Chairman. Given their experience together and Barone’s clear motive to sell the company, perhaps the announcement was not quite as negative as my first post warranted…. though I still think it’s silly to stop buying back shares at these prices!!!!
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i had nearly the same thoughts as you when i first read the communication but also quickly changed my mind when i learned more about smith’s background…… the strategy is clear, improve short term results and sell the company……
http://webcache.googleusercontent.com/search?q=cache:http://c-g-p.net/
we will learn soon now how essential ferola was to spco’s success, i would not be surprised if there are some good opportunities to “streamline” the business……
regards
rijk
SPCO released their earnings, for the quarter ended Sept 30, on Dec 11.
They showed a massive write-down ($5M) for unsalable inventory, and they even had to pay $189k to dispose of this inventory.
What are people’s thoughts on this stock, given the recent quarter’s poor performance. Might be a good time for an update post?
ask and ye shall recieve! update post coming next week
Great – I’m looking forward to it. I’m actually having a bit of trouble figuring out their last income statement (how *did* they lose so much money?!), so I’m sure your post will be very helpful!
Hi,
Will the update on SPCO be posted soon?
Thanks!!
It will- I started writing it yesterday and will likely finish soon!