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Solitron Devices ($SODI) has been a net net for quite some time, but has recently run up above the net net price of $3.24 per share. OddBallStocks wrote a letter to management in June 2012 urging management to buy back stock and to hold an annual meeting. SODI has not held an annual meeting for over a decade. It appears that more investors are getting involved to institute some changes.
Furlong Financial LLC has sent a letter to SODI’s management to make a shareholder proposal. Furlong has proposed increasing the number of board seats from 3 to 6 and proposed a list of directors to take those positions. This is an attempt to shake up management to be more shareholder friendly and include outside directors on the board. It appears that Furlong holds just a minimal amount of stock with 18,000 shares out of 2.3M shares outstanding. According to the bylaws of the company, a shareholder must own at least $2000 of stock for over a year to make a proposal.
The proposed directors are listed below:
- Daniel Rudewicz – Furlong Financial
- Derek Cash
- Stephen Kiel
- Ryan Morris
- Benjamin Large
It is nice to see more activist investor interest in SODI. The company has a lot of cash and market securities while being a profitable company. Hopefully we will see management use that cash and equivalents to return money to shareholders through further buybacks. The stock price has risen over the past 6 months and now sits at $3.64.
You can read the letters from Furlong to Solitron Devices here
Disclosure: Long SODI
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