More portfolio managers are playing Mencken and writing not-so-love notes back to their portfolio companies. Here is a fun one from Carlo Cannell of San Francisco-based Cannell Capital to the folks at Opinion Research Corporation (NYSE: ORC) (scroll to the end though). A sample paragraph:
I have, over the last two decades of money management, observed but fortunately not been a victim of, many transparent efforts designed to enrich the coffers of management. The proposal of ORC to buy stock at a 105% premium from one, and only one, of it shareholders, and to finance the purchase at the expense of all other shareholders adds a new chapter to the shameful annals of management self-dealing that I hoped had passed with Adelphia, Enron, and Worldcom.
Go get ‘em, Carlo!
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This is as funny and smart as it gets. Sounds like the managment behavior is typically offensive and self-serving.
And the last sentence is hillarious.
I think the last two paragraphs should also be highlighted:
We therefore urge you to act in accordance with your fiduciary obligations,
cancel the LLR Transaction and the common stock offering, and retain an
independent financial advisor to pursue the value maximizing alternative for
your stockholders.
On your deathbeds you will be glad to have modified your behavior to that of
lesser scoundrels.
Thank you for pointing this out. I’m glad I’m not an investor.