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Compass Diversified Holdings Message Board

  • mthiker2004 mthiker2004 Jun 2, 2008 8:32 PM Flag

    Steady insider buying of CODI

    Insiders bought net 167k shares during the last two weeks of May. See:

    That represents about 5% of daily trading volume each day.

    I'm guessing they know something.

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    • I meant "credit environment" not "credit department".

    • I agree temp staffing is the strongest leading indicator but my point is that there is always be a fraction of CBS business which is irreplacable to its customers. CBS concentration is primarily in the low skill set industrial staffing space which will always require a minimum number of temp workers to keep their plants productive or at least prevent the machines from breaking due to misuse. In these industries, if there is a seemily unlimited availability of talent, Companies will always be more motivated to fire their perm employees and staff up on cheaper temp employees. Another factor to consider is that CODI has a unique permanent capital structure = $ 3oo millon undrawn revolver vs. staffing firms which need to raise outside debt in these very difficult credit department. I can make the argument that this makes it easier for CODI to acquire cheaper staffing businesses, improve their concentration in certain markets and generate ridiculous synergies. If you read CBS business overview section, this has been the CBS forte. Should be a positive to the stock, albeit slightly dont you think ?

    • I agree with most of your statement, except your comment on th usage ot temporary staff. When cutting back on staff does not necessarily mean the use of more temps. The industry (temp industry) is the first to go down during a recession but the first to come up during a recession. We are still not on the way up, so there will continue to be a decline in the short term which will negatively effect any stock in the niche.

    • What are you smoking ? PPL who have a 5% stake can exert signficant influence because they can threaten to buy more shares or get 46% or more of share holders to agree with their plan. The securities law clearly states that to pass any resolution on a board you need to get more than 50% approval. (again learn to use google). Webster dictionary, any source will tell you that a majority is "more than 50%". I challenge you to post a link that points to another definition. Just like your statements on CODI, your own vocabulary is utterly nonsensical.

      Bigger picture CODI pays out 80% of its cash available for distribution. That if you removed CBS contribution, Dividends would only be cut by 10%. That’s the worse case Dooms Day” scenario because people will always need temp hires especially when they start laying off a large portion of their permanent workforce. And even if this happens, they can still pay dividends with their large cash proceeds from the sale of their two businesses. Again your bias against CODI seems unmerited and you are probably just bitter because you lost money on this stock, when deep in your heart you know that this is a steal.

    • You idiot. 29% is a "majority" stake compared to any of the other operating units. For instance, when an individual investor has, let's say 5-9% of an entity, like GM, or Chrysler, that investor can dictate, many times the Board of Directors and the direction of the company. Much in the same way here, so goes CBS so goes the company. While not technically a majority, i.e. 50% or more, individually, it is by far, if removed, impactful to the point of ruin. Daytraders, geeesshhhhhhh.

    • I changed my mind. I don't think you're mentally competent enough to be employable at any capacity. For starters you probably don't know how to use google. If you google "CODI EBITDA", you will get this link.
      Go to page 14 of this presentation and you will clearly see that CBS represents only 29% of their EBITDA -- when did 29% constitute a majority ? By the way TTM stand for trailing twelve months. It's not a ticker symbol. Enough said.....

    • Sonny, your technical school 6 month class in Algebra isn't Accounting. Most of the EBITDA comes from their staffing division. Hey I hear your mother calling. Time to take out the trash else you don't get your allowance...

    • Although I'm flattered that anyone would think someone as insignificant as I would have the ability to pump any stock, I have no position and am waiting until I see signs of a bottom before tip-toeing into the water.

    • While CBS Staffing might constitute a majority of revenues it does not constitute a majority in terms of EBITDA, which is what is most imporant if you are worried about dividends , liquidity and diversification. Maybe you should take an accounting class before you start bashing people on this board. I think CBS personnel's temp accounting division might be able to offer you some good training. I suggest you quit your day trading job now, cause you clearly don't know what you're doing.

    • Massoud is a good man. He works his ass off and is full of integrity. Something refreshing in this day and age. Doubling up before the ex on the 11th.

      • 2 Replies to antsyindapantsy
      • How good does your man look now? CODI pps does nothing but go down, down and down every day and not as much as a comforting word from management. I have absolutely no confidence in Compass management and regret ever investing the first penny in this loser.

      • Massaud is the real deal. Dang it's rare when One of my tiny less one that was negative for the last 6 months is turning around.
        I've been buying the last three months. Usually at 250 a pop. Whenever the market is hating life, i buy another lot.
        Not too many people on Yahoo who follow this's a shame.
        Something tells me that in 2-3 years this one wqill look real good. It's not enough to post a positive reply on these boards. Just listen to their last cc...Masaud mentioned they are being invited to much nicer deals than they used to be....his wording was somewhat different but you get the idea.
        Looks like I'll have to buy some more next time the market hits a hate day.
        And so it goes...
        Jeannie these prices you have to love the amount of shares you get when divies are declared....

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