PBC

Tech by day, deep value by night.

[PBC @pointbarcap]

Any views on why $MODG (assuming spin occurs) doesn’t work? On my figs, it’s trading at 1.3x Sales vs 2.3x for $GOLF and 2.4x for Taylormade. Seems wide, and v wide if you don’t agree that TopGolf equity should be marked at <$0.

[ACCESS Newswire @AccesswireNews]

$BGSF BGSF, Inc. Announces Special Cash Dividend of $2.00 Per Share https://t.co/hCWYybTnYx

[PBC @pointbarcap]

@ClarkSquareCap Late, but I'd add $BGSF. Sold more complex segment for $99M, valuing stub (property mgnt staffing biz) at ~$20M (EV) with $53M of net cash. Will b/e in 2025 (possibly 2026 also) but mgnt is aggressively cutting costs thru cycle and op lev profile will be a tailwind when it turns.

[PBC @pointbarcap]

@LionheartInves1 nice find

[PBC @pointbarcap]

Granted, property mgmt isn't sexy. But consider: 1) they're cashed up from divestiture, so defensive if economy weakens 3) revenue inflection potential on rate cuts 4) strategic review ongoing = optionality. Risk/reward seems compelling at these levels. (3/3)

[PBC @pointbarcap]

Start pos on $BGSF. Staffing agency undergoing a strat review. Just sold Professional Services bix for $99M, leaving RemainCo (Property Mgmt) at ~$12M pro-forma EV or <1.5x normalized EBITDA of ~$8M. Mgmt is also cutting $9M costs into recovering demand environment. (1/3)

[PBC @pointbarcap]

Property Mgmt segment has generated b/w $13-23M operating income historically (2019-24). Even assuming only 50% of $9M cost savings stick to RemainCo post-divestiture, we get ~$8M normalized EBITDA. At current valuation the discount seems too large. (2/3)

[PBC @pointbarcap]

@ToffCap COLIF was also involved in $PCTI (PC TEL), which was acquired for $7 in 2023. Both operate in the IoT space.

[ToffCap @ToffCap]

The action is increasing at Lantronixs $LTRX, with a.o. Chain of Lakes Investment reporting a 7.7% stake and pushing for Board changes in order to sell the company.

CoL believes that the company would be sold for ~$6 p/s (compared to $2.3 today).

Also to note the continued open market purchases from insiders.

[PBC @pointbarcap]

@puppyeh1 Try https://t.co/nRY667QJ1E

[PBC @pointbarcap]

@valuedontlie How?

[PBC @pointbarcap]

@AndrewhFX $330M in tax savings by structuring the divesture as a merger instead of an asset sale. Price paid is still poor, and the fact that the spin was initially meant to be tax free only adds salt to the wound.

[PBC @pointbarcap]

What is $VSTO management thinking?! Traded comps at 6x EBITDA + and they’re letting the golden goose go for 5x.

[PBC @pointbarcap]

Can’t decide on which part of $VSTO I should keep.

[PBC @pointbarcap]

@joinrepublic @joinrepublic why are you still promoting deals when support isn’t capable of answering simple questions regarding previous ones? I (fortunately) invested only a small sum in Obi 6 years ago, but you can’t tell me where my assets are. The custodian Prime Trust has filed cpt11??

[PBC @pointbarcap]

Degenned into $RIG and $VNO calls which have paid of nicely. Still hold. Will wait out $SVT / $LUC given their revenue deferrals, but I think the underlying theses remain intact. Reduced $HWO.TO significantly. Am optimistic about $CULP given the recent perkiness and insider buys.

[PBC @pointbarcap]

Quick update as my attention has been elsewhere. Out of $SPOK for ~95%+ gain. Panic sold on the recent pop and left a buck on the table, but I wanted to avoid another round trip if this rally rolls over. Given its yield, I also think there is some underlying sensitivity to rates.

[PBC @pointbarcap]

Took a minor bath (-20%) on $NEXS.L. Raw cheapness wasn't able to compensate for its highly vulnerable business model. Moving forward, I need to be far more considerate of HOW value gets unlocked, especially around (and in anticipation of) inflections.

[PBC @pointbarcap]

@Kreuzmann13 Unfortunately a matter of sitting and waiting. Prod will eventually normalise, and ATG has these contracts long-term so simply has to sit tight until the orders rolls in. Returns should also be assisted by the possibility of creating the ATG stub cheaply when CPG sells.

[PBC @pointbarcap]

$SVT. Activist has pulled its nominations and ended the proxy contest. Calling for a strategic review of all assets, not just CPG instead. Note that ATG did ~$5M in EBIT pre-COVID and 737MAX accidents. Current MC of $30M.