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PMFG, Inc. Message Board

  • sdfsdfsdfsdddfsdf sdfsdfsdfsdddfsdf May 18, 2011 12:52 PM Flag

    NSB Advisors blowing out of PMFG?

    I believe PMFG’s largest shareholder NSB Advisors LLC (which owned ~69% of PMFG’s outstanding shares as at 3/31/11, per NSB’s 13-F filing which was filed with the SEC on 5/16/11) is in the process of selling its shares in PMFG.
    Why would NSB’s clients almost completely convert all of their Series A convertible redeemable preferred stock (which they did) if NSB’s intention was not to liquidate its clients’ investments in PMFG? Preferred stockholders get paid an annual dividend of 6.0%, so if you are a preferred stockholder, there is no rational reason to convert to common stock (which pays no dividend) unless you were going to sell. Check out NSB’s Firm Brochure, dated 3/30/11 (see: http://www.adviserinfo.sec.gov/(S(c5cr0mcmk41jrfe511yipvlk))/Iapd/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=78863) – the first part of NSB’s three-part investment strategy is to “provide clients with a total return composed of…1) income derived from portfolio investments…” (therefore, it’s again completely irrational for NSB to convert the preferred stock unless it was going to sell the common stock). Also, one of NSB’s “portfolio goal[s] is to hold positions at least long enough to achieve long-term capital gains taxation treatment” (which occurred for NSB’s holding in PMFG’s preferred stock in September, 2010).”
    Since 3/31/11, PMFG stock has declined 13%, and I expect considerably more selling pressure to drive the stock price down significantly from here.

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    • Now invesco and NSB have 82% of stock under them. NSB added to their % last quarter and invesco comes in with 11%. These guys have something in mind buying stock on a company that has trouble making a profit. Both Nsb and invesco are not in business to lose money on this level. It seems to me that they have to be looking for someone to purchase or merge with PMFG. What do you think?

    • No way NSB can blow out of PMFG. Stock is traded so light it would take a year to sell the shares they hold without a big drop in price.

 
PMFG
5.30Sep 16 4:00 PMEDT

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