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CLRS Message Board

  • tex7779 tex7779 Mar 15, 2003 2:07 PM Flag

    Howdy Bluematchbook:

    Bluematchbook:

    I do appreciate the kind words in your last post.

    Equally, it is clear to me from your musings of past events at the Suwanee office and as I have felt for some time, that there were quite a few very talented and professional engineers and programmers there, with very noble goals.

    Judging from your post, however, I am indeed disappointed that there was not much more local, Atlanta area, participation of unhappy shareholders with respect to engaging or discussing the company with SJ et al. Surely, from the secondary offering of $ 115 / share in March of 2000, down to about $ 10 at the end of the year 2000 and further down to about $ 5 in April and May of 2002, there must have been plenty of unhappy and significant shareholders.

    I went to what I would call the business closeout meeting on December 6, 2002 and saw Jim McD. I asked him where you landed after this whole thing. He thought you were in the Big Apple. I hope things are going well for you there. SJ was very reluctant to shake my hand. I guess he was not too keen that I, along with many other shareholders, was concerned about the ever declining cash position, with no end in sight as to a turn around. If you have a chance, drop me a line on tex7779@yahoo.com.

    Meanwhile, as to Clarus, all we can do now is wait for Kanders et al to announce a new business combination. Given that, he and his gang have sunk almost $ 10 million of their own money into Clarus, I strongly believe that we will see better days ahead. I never saw any of the former CLRS heavy weights buy into the stock like these guys.

    As always, JMHO.

    Tex

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    • and who knows what other discussions Kanders is having with himself

    • Agree. The rent deal works out to be something like $60/sq./ft. which seems really high--even for Stamford, CT. Not sure what kind of build out they are doing either for that price...gold plated toilets?

    • Nothing is straight foward when it comes to value and cash in the market. Equating the two is often a big mistake and involves a considerable degree of trust in the intentions of management.
      From 10K info sounds like there may already be warning signs. They got reimbursed $500K for proxy fight and Kanders will receive 300K of capital improvements on building and 100K for rent - could be just the start. Insider dealings represent a bad precedent esp. when based on Kanders having a talk with himself (oral agreement ?) (i.e. no external auditor's opinion.) What's next - buy out of business owned by relatives?

    • Cyg:

      Keep in mind that Kanders himself has about $ 8 million of his own money tied up in this. Between him and the other two, they have about close to $ 10 million invested.

      As compared to the prior leadership in CLRS, I am willing to expect that it will be in Kanders' interest to bring about significant improvements in the stock price. He stock options for 200,000 shares at 5.65, 400,000 each at 7.50 and 10.00. This is all from a late Dec'02 SEC filing. Why would he bother with option strike prices at 7.50 and 10.00 ?

      Just my HMO.

      Tex

    • the NOLs are in the latest 10K and yes, they are over 100M -- I'm no tax attorney, but I'm quite certain the 100M would not be a 100% flow through in an acquisition -- the probably would be some percentage though that could be taken as a loss... These guys have the lawyers to figure it out though. What they need to do is find some decent, growing, profitable business that has a need to be public. Value of that company + cash + value of NOLs - debt /~16 million shareholders should be the per share price of the new firm.

      I suppose another reason for the discount is some factor that Kanders and crew -- buy some shit firm that is bleeding money, then shareholder are stuck in an unknown situation again. I.e. just b/c there is cash on the books doesn't mean it will be well spent.

      Nonetheless, CLRS is pretty straightforward today in terms of valuation -- you just have to make the assumption that the guys on the inside aren't going to waste their own cash -- which seems reasonable enough given that they all have significant skin (shares) in the game.
      -cyg

    • Cygusventures

      When you looked at the 10k do you recall the
      amount of NOL's that they have? I thought it
      was at least 100 million. If that is correct
      then any company they acquire would have to
      generate 100 million in pre tax income before
      any taxes would be incurred.This would be a
      tremendous cash flow benefit to "new" Clarus.

    • Tex

      Why do think the stock price is drifting down
      to a price that is a $1.00 below cash book value? Any thoughts

      • 2 Replies to exercise007
      • Exercise007:

        Been gone for a while, just catching up here.

        Wow, three postings in less than a week here. Just kidding, the point here is that things are quite slow.

        As to your question, I agree with bluematchbook. The big players by and large are holding back on any more purchases until they see what Kanders et al will do for the new business venture.

        Until then, as I have posted before, trading will be primarily be done by former CLRS employees and day traders. The slow volume attests to that theory.

        I am holding my shares. No sense in selling now, unless you have to.

        Keep in mind, all of the CLRS purchases that Kanders et al did after the 2002 proxy fight were significantly higher than the stock is now. Thus, they ought to be interested in getting the stock up. It is just a question of time.

        As always, JMHO.

        Tex

      • I don't get this either...are all the liabilities paid out? Cash value would be around $5.70...???

 

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