What the top management personnel did say was they wouldn't work for Sherwood and from their open letter to shareholders I can certainly see why. Before berating management you'd better read the open letter to shareholders much more carefully.
Disagreements between Sherwood, who controls the ZS Fund, and the company's management came to the fore after ChinaCast got an unsolicited offer in August valuing it at $7 per share.
The $346 million offer grossly undervalues the education provider, Sherwood had said.
Subtracting the company's cash reserves, the offer values Chinacast at just $189 million, the investor said in his latest letter.
He argues that the three universities the company purchased for $220 million in the last three years alone are worth more.
"Since their acquisition, the aggregate operating income has risen per CAST's financial filings by approximately 25 percent," he said.
"If we just assume the same multiple we paid for the universities on their increased earnings and no real estate appreciation, we believe that our universities should be worth approximately $275 million."
In addition, he pointed out, the company has an e-learning business that "earned $18 million over the past 12 months."
He reiterated that the company's true worth can only be discovered through an auction process designed by a committee of the independent directors and advisors.
ChinaCast shares were up 3.3 percent on Thursday on Nasdaq. They have gained about 34 percent in value since getting another buyout offer on November 15 from an unnamed institutional buyer.