SYTE management are people from CoBF who took it over from the "bad guys" who ran it before and did a lot of very questionable stuff ( renting office from CEOs mom for exorbitant amounts, etc. ).
However, the "good guys" then did a huge dilution selling the stock in private placement to their friends at 1x book while stock was trading at ~2x book on the exchange. Yeah, screw the minority shareholders, you're not inside, you're outside.
The stock is still trading at ~2x book while company is engaged into 5 (6?) different businesses (legacy ISP, legacy RE, new HVAC rollup, new investment/asset management, new platform for hedge funds, new hedge fund itself)... This is 25M market cap company - way to go for multiple business lines! Ah, yeah, BTW, these business lines are projects for the management friends hedge fund managers who are really the best. Otherwise they would not be management friends.
I know that I won't persuade you not to invest, but really caveat emptor and maybe size accordingly. At least read the CoBF thread about the machinations of the management. And... yeah, CEO & people running their investment business post there too in case you want to hear their beautiful side of the story. Obviously, this is going to be next Berkshire and you gonna kill me for dissuading you from getting on the ground floor... |
