I'm sure he's an expert on de-icing planes and delivering packages. Last quarter's results for what I would think would be the company's seasonal height were just exemplary. What a display of management skill! Anyone with money can buy stock.
Like Pete Townsend said..."Meet the new boss..., the same as the old boss."
I supported his proxy fight at PDEX. It sounds like the situation may have been similar to AIRT, but I haven't followed what happened on your end. At PDEX, he's diluting the stock with a below market price rights offering with his own companies having the rights to any unsubscribed shares. As PDEX doesn't need additional funding, it appears he wants to use these funds that he now controls for unrelated investments, therefore, if you don't subscribe to your rights, you get diluted and he picks the shares up at below market. If you do pick up your shares, he gets the money to invest in anything he wants on your dime. This is sleazy self-serving behavior in my opinion, and it's the reason I no longer have any confidence in Mr. Swenson.
I wonder if Mr. Swenson had anything to do with the shut-down of the PDEX message board? I think it very odd given the tone of the opinions regarding what I consider to be a self-serving rights offering of PDEX shares. Keep an eye on this guy, and keep an eye on your pocket.
I'm sure that they're happy that their discretionary write-offs hid a profitable quarter which caused the stock price to drop. We're a bunch of suckers, aren't we Nick?
Based on what's happening here at Pro-dex, I doubt Swenson will ever will another proxy battle. He's shot his credibility all to hell. A look at his other major investments don't look so good either. Look at ELSE, SODI and AIRT. These companies have underutilized cash but no growth, so the stock values just sit there while the business rots.
I wouldn't be surprised if there's some downward manipulation of the quarterly financial data in order to get the stock price down prior to the rights offering. I no longer have any trust in Swenson or his league of neophyte analysts he has working for him.
The recent Seeking Alpha report appeared to be "dead on" regarding Swenson's motivation for the rights offering. Screwing over the people who supported you doesn't demonstrate much character in my eyes.
Nick Swenson was allowed to take over the Board because he promised to be shareholder friendly, tighten up expenses, and turn the company around. He's now sadly missed on the "shareholder friendly" promise because of this apparently self-serving rights offering, and he is losing my trust on whether he can help turn the company around. I'd like to know why he bailed out of ELSE. I'm guessing that he couldn't get his way there, so he took his ball and went home.
How can the company justify issuing additional shares while at the same time initiating a stock buyback?
Also, what gives AO Partners and Farnam the right to exclude existing shareholders in purchasing unsubscribed shares?
There also seems to be an insider trading issue here, as AO and Farnam are controlled by BOD members.
The company admits it needs no cash in its last 10Q, but is now issuing shares for the sole reason to dilute existing shareholders and attempting to allow the tightening of company control by insiders AO and Farnam at a discount.
This action needs to be reported to the SEC. It stinks to high heaven!