One of the great events in an investor’s life is that day you one of your portfolio companies agrees to sell itself at a hefty premium. Rarely does recognition of a good call come at all once, and you will be forgiven for the initial euphoria (and maybe a bit of gloating). However, as sweet as this time is, you eventually have to face the decision of whether you should hold the position or sell.
On one hand, you can lock . . .
→ Read More: A Buyout Offer! Now What?
For God’s sake, let us sit upon the groundAnd tell sad stories of the death of kings;
- King Richard II, Shakespeare’s Richard II
This week I closed my position in GTSI Corp (NASDAQ: GTSI) which was one of my longest holdings and I think the subject of more posts on this site than any other (I was young and had too much focus to talk about much else). It has been quite a . . .
→ Read More: GTSI Corp: A Final Chapter ($GTSI)
Today GTSI Corp (NASDAQ: GTSI) filed its preliminary proxy documentation. Contained within it is a company-proposed amendment to the company’s constating documents which would declassify the board of directors (emphasis added):
The Certificate of Incorporation currently provides that, subject to the rights of any series of Preferred Stock to elect additional directors under specified circumstances, the Board is divided into three classes of directors designated as Class 1, Class 2 and Class 3, with each class having a three-year . . .
→ Read More: GTSI Corp: A Big Win for Corporate Governance ($GTSI)
Yesterday GTSI Corp (NASDAQ: GTSI) reported its earnings. It was a busy period for the company which included the resolution of the Eyaktek subsidiary issues, the purchase of Information Systems Consulting Group, Inc (InSysCo) and the authorization of a share repurchase program. With the sale of Eyaktek, the company’s revenues declined quite dramatically.
The quarterly conference call became quite heated, with three different investors demanding to know why the company is still operating and what . . .
→ Read More: GTSI Corp: When Should A Company Dissolve? ($GTSI)
I have written about GTSI (NASDAQ: GTSI) on this site many times. Simply put, this company was one of my bigger mistakes. Rather, failing to sell this company was the mistake. Let’s look at the chart:
GTSI Chart, courtesy of StockCharts.com
That jump late last fall? An offer to buy the company from a partially-owned subsidiary. Strange, right? I thought . . .
→ Read More: GTSI Corp launches $5 million repurchase plan ($GTSI)