The July 12th issue of Barons reported that Gamco "boosted its stake to 4,074,975 shares (11.54%) by purchasing 365,000 from May 10 to July 2 at prices rangingg from $7.87 to $11.15". Could this mean another attempt to place its people on the board?
That is doubtful. By that I mean the purchase is not driven by the desire to place someone on the board.
First, "Proxy Season" is relatively far in the future. Second, to actually place people on the board, I suspect that they [Gamco] will have to be more "active" than they have been in the recent past, perhaps by actually soliciting votes.
Perhaps they simply see "value" in the investment.
Likely to reduce their overall basis in the investment they have in MYE.
As to putting someone on the Board next year, many institutional investors have not actively solicited proxy votes in the past two proxy seasons given the cost (easily could cost $300,000) to see how the SEC's proxy access system would work. Given that proxy access will be in place shortly, my guess is Myers is about to receive a notice from GAMCO about putting two people on the board next year.
So GAMCO will have saved about $500,000 for solicitation costs, while Myers management and Board likley spent $500,000+ to defend their positions, and at the next meeting Myers shareholders will be able to vote on the GAMCO slate without GAMCO having to spend a dime.
Pretty smart of GAMCO if you ask me.
I assume the Board will throw two of the Board members off and give those seats to GAMCO to avoid the embarassment of a loss. Any thoughts about who they'll ask to leave? Johnston? Kissel? Orr?
Another foolish move by John Orr. He must be driven to destroy Myers Industries. Every move he has made since he came to the firm has been questionable. He has lost stock holders millions and this is just the beginning!!!