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Steel Excel Inc. Message Board

  • belco_mc belco_mc Oct 17, 2012 2:35 PM Flag

    criticism of SXCL

    I understand the criticism of WL and the fact that he hasn't either shared or executed on any sort of coherent business plan. He is controlling a lot of cash as the market runs up. It looks like he has been bearish and wrong.

    However, the criticism I don't understand is when someone said all WL was after was SXCL cash. When transaction selling the fracking services company to SXCL, they took stock instead of cash. How do you explain that?

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    • I do not know how to explain it...Perhaps the more stock own gives greater control of decision making around the company dealings including the deployment of company funds and future deals. With a company sitting on a few hundred million dollars and not having a defined business sends up flags to me. Okay, so they picked up a fracking services company... when is it expected to earn revenue for Steal Excel? What is the return on investment? As the stock price continues trending towards a 52 week low, the business model/strategy has to eventually be questioned...I guess to whom are "they" held accountable? The interim leadership? The BOD who possibly have ties to Steal Parts.?

      I really do hope the company turns profitable and the share price hits 100, but my guess is that funds will continue to be used for business dealing that are shady at best and most probably somehow will involve Steal Parts. and with that will come share price errosion.

      I look forward to hearing how much revenue was generated in 2012 as a result of the past "partnerships."

    • good point...maybe he wants the cash for his team and himself for expenses?

      • 1 Reply to glaschutte
      • Didn't SXCL just cut a deal with SPLP for SP Services (owned by SPLP) to provide executive management services for something like $3-$4 million a year? It seems like a big number, especially if they are going to slow play all the cash they have. However, if they put the money to good use and are getting services that are valid then it makes good sense. Seems to me the winner is SPLP. They get good cash flow to the SPLP level and can be patient on investing the funds at SXCL. I own SPLP for the long term and will give them time to see how they execute.

        SPLP is really cheap- trading a much less than asset value. Warren has his money at SPLP, something tells me that he'll look after his own money and do well over time.

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